Acarix (ACARIX) Q2 2024 earnings summary

Executive summary

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

• Achieved record-breaking results in Q2, driven by increased patch utilization, expansion into new clinics and states, and a new usage-based business model in the US.

• Presented strong clinical and economic data at ACC, highlighting significant cost savings for payers and CMS.

• Significant progress in reimbursement strategy, including ongoing discussions with CMS, positive CPT code developments, and focus on building reimbursement pathways with CMS and private payers.

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

Financial highlights

• Revenue increased 27% year-over-year in Q2 2024 to SEK 1,958K; US revenue up 34%.

• Gross profit rose 38% globally and 59% in the US; gross margin reached 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 in Q2 2023 to SEK 18 million in Q2 2024, a 25% improvement.

• 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 for ED outpatient setting in November, with implementation expected January 2025.

• Targeting agreements with at least two major private payers by year-end or early 2025.

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

• Focus remains on US market expansion, maintaining high gross margins, and cost control.

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