Stereotaxis Inc. (NYSE: STXS) is experiencing a significant increase in its stock value today, with a rise of 26.04% to reach $2.13 as of the latest update in recent trading. In comparison, on Thursday, Stereotaxis shares concluded the day at $1.69.
The trading volume reached 2.57 million shares, surpassing the average volume of the past three months, which stood at 0.18 million. The surge in STXS stock is attributed to the recent announcement of a collaborative agreement.
Which Collaboration Has STXS Entered Into?
Stereotaxis (STXS) has recently announced a global collaboration with Abbott, a renowned healthcare company, to integrate Abbott’s EnSite X EP System with Stereotaxis’ Robotic Magnetic Navigation systems.
This groundbreaking partnership combines Abbott’s state-of-the-art cardiac mapping system with Stereotaxis’ advanced robotic technology, offering physicians highly detailed real-time diagnostic information and unprecedented precision during therapy delivery.
The integration of these technologies streamlines procedural workflow, enhances the physician experience, and supports improved treatment for patients with abnormal heart rhythms. With regulatory clearances expected in the coming months, this collaboration is set to revolutionize the field of electrophysiology.
The Importance Of The Collaboration
The integration of Abbott’s EnSite X EP System with STXS’ Robotic Magnetic Navigation systems marks a seminal event for physicians involved in electrophysiology.
This joint effort opens up new possibilities for the treatment of complex cardiac arrhythmias, benefiting patients worldwide who suffer from abnormal heart rhythms.
Arrhythmias, characterized by irregular heart rhythms, pose significant health risks if left untreated. They can increase the chances of stroke, heart failure, and sudden cardiac arrest.
Abbott’s EnSite X System, cleared by the US FDA in 2021, offers the latest advancements in cardiac mapping, while Stereotaxis’ Robotic Magnetic Navigation technology introduces robotic precision and safety to cardiac ablation procedures.
By combining these innovations, physicians can provide more effective treatment options for patients with arrhythmias.
Financial Results And Outlook
STXS also last week reported its first quarter of 2023 financials. STXS reported revenue of $6.5 million, slightly lower than the previous year’s first-quarter revenue of $7.0 million.
However, when excluding catheter royalties received in the prior year, the revenue remained equivalent. System revenue for Q1 2023 was $1.8 million, while recurring revenue reached $4.7 million, compared to $1.6 million and $5.4 million, respectively, in the prior year’s first quarter.
Gross margin for Q1 2023 was 59% of revenue, with recurring revenue gross margin at an impressive 79% and system gross margin at 7%. The low system gross margin can be attributed to the allocation of overhead expenses over low manufacturing volumes.
Operating expenses for the quarter were $9.5 million, including $2.6 million in non-cash stock compensation expense.
Adjusted operating expenses, excluding non-cash stock compensation, were $6.9 million, reflecting increased spending in research and development compared to the previous year.
Operating loss and net loss for Q1 2023 were ($5.6) million and ($5.3) million, respectively, slightly higher than the previous year’s figures.
However, adjusted operating loss and adjusted net loss, excluding non-cash stock compensation expense, were ($3.0) million and ($2.7) million, respectively, showing a more favorable trend compared to the previous year.
Despite the financial performance in Q1, Stereotaxis maintained a healthy cash position, with cash, cash equivalents, and investments amounting to $26.8 million and no debt as of March 31, 2023.
How The Collaboration Will Help STXS Excel?
Stereotaxis (STXS) collaboration with Abbott presents an exciting opportunity for investors looking to tap into the rapidly evolving field of cardiac treatment.
The integration of Abbott’s EnSite X EP System with STXS’ Robotic Magnetic Navigation systems has the potential to transform the way physicians approach the treatment of abnormal heart rhythms.