ReWalk Robotics Reports First Quarter 2016 Financial Results-Growth driven by U.S. Veterans Administration and Commercial Insurance Reimbursement-
YOKNEAM ILIT, Israel and MARLBOROUGH, Mass., May 05, 2016 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq:RWLK) (“ReWalk” or “the Company”) today announced its financial results for the three-month period ended March 31, 2016.
Highlights of and subsequent to the first quarter include:
Total revenue for the first quarter was $2.1 million, compared to $635,000 for the first quarter of 2015;Placed 32 ReWalk systems during the first quarter of 2016, compared to 13 ReWalk systems during the first quarter of 2015; represents most units placed to-date;Gross margin improved to 23.9% largely driven by increased volume;U.S. Department of Veterans Affairs (“VA”) purchased 20 ReWalk devices for their multi-center national study of the quality of life and health benefits of exoskeleton use;First comprehensive reimbursement coverage policy for ReWalk exoskeletons issued by commercial payer;First insurance reimbursement denial overturned on appeal with an independent medical review organization determining that the ReWalk system is not an experimental or investigational technology;First-ever meta-analysis of exoskeleton technologies concluded powered exoskeleton systems are safe in real-world settings and confer health benefits to users;First-of-its-kind quality of life case study published in the peer-reviewed journal Spinal Cord Series and Cases, demonstrated that use of the ReWalk exoskeleton resulted in significant improvements in the quality of life for an individual with spinal cord injury; and,Seasoned medical device industry veteran,Peter L. Wehrly, appointed to ReWalk’s Board of Directors effective April 5, 2016.“We had a strong start to the year with a significant increase in revenues for the first quarter of 2016. Our efforts to build a solid foundation for ReWalk in key areas including market development and reimbursement are delivering early and promising results. Reimbursement remained a key focus area for us during the quarter. We secured our first comprehensive commercial payer policy, and won our first coverage denial appeal enabling a ReWalker in the U.S. to receive a personal unit.” statedLarry Jasinski, Chief Executive Officer.
“Additionally, the initiation of the VA’s prospective multi-year randomized trial resulted in their procurement of 20 ReWalk systems during the quarter. We are proud to help the VA continue its ground-breaking work in developing clinical data to document the benefits of walking again,” stated Jasinski. “With the VA’s national standard operating procedure that covers ReWalk systems now fully implemented, we have now provided two ReWalk exoskeletons to veterans for home and community use. With these early strategic successes, we will continue to build our foundation, prioritizing reimbursement efforts, demonstrating the benefits of exoskeleton use through clinical studies and publications, building our sales pipeline and remaining at the forefront of product innovation,” concluded Jasinski.
First Quarter 2016 Financial Results
Total revenue was $2.1 million for the first quarter of 2016, compared with $635,000 in the first quarter of 2015, and up sequentially from $1.3 million in the fourth quarter of 2015. 32 ReWalk systems were placed during the first quarter, compared with 13 ReWalk systems placed in the prior year period, and 25 placed in the fourth quarter of 2015.
Gross margins increased to 24% in the first quarter reflecting increased volumes and stronger ASPs.
Total operating expenses in the first quarter of 2016 were $6.9 million, compared with $5.6 million in the first quarter of 2015. Operating expenses in the first quarter reflect investment in our commercial and reimbursement efforts.
Net loss was $(6.9) million for the first quarter of 2016 compared with a net loss of $(5.7) million in the prior year quarter. Non-GAAP net loss for the first quarter was $(5.9) million compared with a non-GAAP net loss of $(5.1) million in the first quarter of 2015.
A reconciliation of net loss to non-GAAP net loss is included at the end of this press release.
Liquidity
As of March 31, 2016, ReWalk had $21.8 million in cash and cash equivalents. On January 4, 2016, ReWalk entered into a loan agreement with Kreos Capital under which Kreos extended a line of credit for up to $20.0 million, of which ReWalk has currently drawn down $12.0 million.