Axonics (Nasdaq:AXNX) shares took a hit after hours despite third-quarter results that bettered the consensus forecast.
Shares of AXNX dipped 7% to $68 apiece after the market closed. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day up 0.2%.
The Irvine, California-based sacral neuromodulation (SNM) technology developer posted losses of $16.3 million. It reported sales of $70.4 million for the three months ended Sept. 30, 2022.
Axonics produced a slight bottom-line gain despite remaining in the red on sales growth of 50%. Its losses per share of 34¢ beat Wall Street expectations by 14¢. Meanwhile, sales topped the analysts’ expectations of $63 million.
The company reported sales of $56.9 million from its sacral neuromodulation business. The remaining $13.5 million came from sales of Bulkamid, a urethral bulking hydrogel.
“This quarter’s record revenue result reflects growing demand from physicians and their patients for our best-in-class incontinence products,” said Raymond W. Cohen, CEO of Axonics. “In the third quarter, total revenue increased by 50% compared to the prior year period. Sacral neuromodulation revenue grew 42% year over year, benefiting from the overwhelmingly positive physician response to the commercial launch of the Axonics F15 recharge-free SNM system. Bulkamid generated another record revenue quarter and we now expect this product to generate $50 million of revenue in 2022, which is two years ahead of our original forecast at the time of the acquisition in February 2021.”
Cohen added that the company “continues to make progress” on key initiatives. That includes direct-to-consumer advertising and in-house manufacturing expansion. It also submitted its fourth-generation rechargeable SNM system for FDA review.
Axonics expects full-year revenues to total $262 million, increasing its guidance by $9 million since last quarter. That tally would represent a 45% year-over-year sales increase.