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Senseonics projects revenue growth, plans new CGM system launch

EditorNatashya Angelica
Published 06/22/2024, 04:36 AM
SENS
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GERMANTOWN, Md. - Senseonics Holdings (NYSE:SENS), Inc. (NYSE American: SENS), a developer of implantable continuous glucose monitoring (CGM) systems for diabetes management, announced a positive business update and its financial outlook for the full year of 2024 today.

The company has reaffirmed its expected global net revenue for the first half of the year at $10 million, marking a 21% increase from the same period in 2023. Additionally, Senseonics reported a significant uptick in new patient starts in the U.S., noting an increase of over 200% compared to the first half of the previous year.

A pivotal development for the company is the ongoing FDA review of their 510(k) submission for the next-generation 365-day Eversense® CGM system. The review is progressing as planned, with the intention to launch the product in the fourth quarter of 2024.

Collaboration with Mercy Health has also begun, with provider training and patient identification underway. The partnership aims for initial insertions of the new CGM system in the third quarter of 2024, with an acceleration of activities anticipated in the fourth quarter.

President and CEO Tim Goodnow expressed confidence in the company's strategic direction, emphasizing the potential growth opportunities with the upcoming 365-day Eversense product and the partnership with Mercy Health.

Looking ahead, Senseonics expects its full-year 2024 global net revenue to range between $22 million and $24 million. This forecast is based on the assumption that U.S. new patient starts will more than double and the global installed base will grow by approximately 50% compared to 2023.

The company also anticipates that inventory adjustments related to the 365-day product launch will affect third-quarter sales, with a sales acceleration expected in the fourth quarter, driven by the new product and the Mercy Health collaboration. Cash utilization for the year is projected to remain in line with the previous year at around $70 million.

Senseonics will host a business update and analyst event on Sunday to discuss these developments further. This statement is based on a press release issued by Senseonics Holdings, Inc.

In other recent news, Senseonics Holdings Inc . has reported a 22% increase in total revenue, reaching $5.1 million for the first quarter of 2024. The company has made significant strides in its product pipeline, including an FDA submission for its next-generation 365-day system and a partnership with Mercy to implement a remote patient monitoring program.

The launch of the 365-day system is expected in the fourth quarter of 2024, with first-in-human testing of its Gemini product also planned for later in the year. In addition, Senseonics is set to provide full-year financial guidance in June and anticipates a global net revenue of $10 million for the first half of 2024.

The company's revenue breakdown includes $3.7 million from the U.S. and $1.4 million from international markets. Operating expenses are projected to be around $80 million for the year. These are among the recent developments for Senseonics.

InvestingPro Insights

In the wake of Senseonics Holdings, Inc.'s optimistic business update and financial outlook for 2024, key metrics and insights from InvestingPro shed additional light on the company's current financial health and market position. With a market capitalization of approximately $202.27 million, Senseonics is navigating the competitive landscape of medical technology with a focus on growth and innovation.

The company's commitment to developing its CGM systems is reflected in its revenue growth, which has been robust over the last twelve months as of Q1 2024, with an increase of 29.12%. This growth momentum is further evidenced by the quarterly revenue growth of 22.0% in Q1 2024, signaling a positive trajectory as Senseonics aims to more than double U.S. new patient starts and grow its global installed base by 50%.

Still, it is important to note that the company is not without its challenges. InvestingPro Tips highlight that Senseonics is quickly burning through cash and analysts do not anticipate the company will be profitable this year. Moreover, the stock has fared poorly over the last month and is trading near its 52-week low, reflecting investor concerns and market volatility.

On a more positive note, Senseonics holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations and growth initiatives. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a degree of financial resilience in the near term.

For investors seeking a more comprehensive analysis, InvestingPro offers additional insights and metrics for Senseonics, including its high Price / Book multiple of 10.67 and the fact that the company does not pay a dividend to shareholders. To delve deeper into these metrics and access further InvestingPro Tips, visit https://www.investing.com/pro/SENS. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 8 InvestingPro Tips related to Senseonics Holdings, Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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