Acarix (ACARIX) Q2 2024 earnings summary

Executive summary

• Shifted commercial strategy to diversify target markets beyond cardiology, including PCPs, EDs, and urgent care, with new consignment and risk-sharing models.

• Achieved record-breaking results in Q2 2024, with revenue up 27% year-over-year, US revenue up 34%, and gross margin rising to 91%.

• Operating loss narrowed to SEK -16.7M in Q2 2024 from SEK -22.0M in Q2 2023, driven by higher sales and cost reductions.

• Significant progress in reimbursement strategy, including ongoing discussions with CMS and positive CPT code developments.

• Opened U.S. OTC market for shares, increasing trading volume, analyst coverage, and investor access.

Financial highlights

• Q2 2024 revenue: SEK 1,958K (up 27% YoY); US revenue up 34%.

• Gross profit rose 38% globally, with US gross profit up 59%; gross margin improved to 91% globally and 93% in the US.

• US patch sales grew 62% year-over-year, from 780 to 1,260 patches; 3,530 patches sold globally in Q2.

• EBITDA loss reduced from SEK 23 million to SEK 18 million; operating result improved 24%, or 29% excluding one-time items.

• Cash and cash equivalents at June 30, 2024: SEK 48,271K (up from SEK 26,299K YoY).

Outlook and guidance

• Awaiting CMS decision on reimbursement in November, with implementation expected January 2025.

• Focused on securing agreements with at least two major private payers before year-end or early next year.

• Additional clinical studies and publications underway to support CPT III to CPT I transition.

• Will provide more detailed financial guidance after key reimbursement variables are clarified.

• Ongoing efforts to secure additional financing and long-term capitalization through share issues and warrant programs.