The Menlo Park, Calif.-based ear, nose and throat condition treatment developer posted losses of -$11.5 million, or -35¢ per share, on sales of $22.7 million for the three months ended Sept. 30, 2020, for a 10.8% bottom-line gain on a sales decline of -5.6%.
Adjusted to exclude one-time items, earnings per share were -34¢, 11¢ ahead of Wall Street, where analysts were looking for sales of $21.8 million.
Intersect ENT attributed its year-over-year revenue dip to the reduction in elective surgical procedures and limited ENT office visits related to the COVID-19 pandemic. However, the company reported a 53% increase in revenues for its Sinuva sinus implant year-over-year, with its Propel product family bringing in more than $21 million on its own.
“We are encouraged that our Propel implants are gaining momentum and recapturing procedure volume following the downturn in elective sinus procedures due to COVID-19. Of particular note is the increased use of Propel in the office setting, something we intend to build upon,” Intersect ENT president & CEO Thomas West said in a news release. “Over the last few months, we achieved other notable milestones in our recovery, including the [$71.1 million] acquisition of Fiagon AG Medical Technologies and an agreement with AllianceRx Walgreens Prime for the national specialty pharmacy distribution of Sinuva. Furthermore, a record revenue quarter for Sinuva, combined with the addition of Fiagon and our solid financial position, has us well-positioned to deliver shareholder value.”
Intersect ENT said its 2020 guidance remains withdrawn because of the pandemic. However, based on trends, it expects its fourth-quarter revenue to total approximately 85% to 90% of the same quarter a year ago.
XENT shares were up 5% at $16.27 per share in early-morning trading today.