Axonics – Charging Ahead

Shares of Axonics Inc. (AXNX) touched an all-time high of $72.03 in intraday trading Tuesday (Aug.17, 2021) as the company keeps exceeding its ambitious goals quarter over quarter, thanks to the growing demand for its products.

Axonics Modulation is a medical technology company whose lead product is a rechargeable sacral neuromodulation (SNM) device, r-SNM System, which is used for the treatment of urinary retention, fecal incontinence and the symptoms of overactive bladder in patients who have failed or could not tolerate other treatments. This device is approved for sale in the United States, Europe, Canada and Australia.

Sacral neuromodulation (SNM) therapy is a reversible treatment that delivers electrical impulses to sacral nerve, the nerve that controls voiding function in the lower spine, to improve bladder and bowel function, and modulate pelvic pain. Medtronic plc.’s (MDT) InterStim and InterStim II are the only other approved SNM devices in the U.S.

We alerted our readers to Axonics in January 2019, when it was trading around $14 in our report titled “Axonics Ready To Charge Up?” (https://www.rttnews.com/2967184/axonics-ready-to-charge-up.aspx?Arch=1). The stock looks all charged up now, trading at an all time high of nearly $70, as of this writing.

The company began commercialization of its r-SNM System in Europe and Canada in late 2018, and in the U.S. in the middle of the fourth quarter of 2019. The Axonics r-SNM System is sold to hospitals and ambulatory surgical centers.

Axonics’ net revenue has increased over the years – $707 thousand in 2018; $13.8 million in 2019; and $111.5 million in 2020, thanks to the growing demand for its r-SNM System.

In February of this year, the company acquired privately-held Contura Ltd. and its flagship product, Bulkamid, which is indicated for use as a urethral bulking agent for the treatment of female urinary incontinence, thereby adding a new revenue stream.

In the six months ended June, 30, 2021, the total net revenue was $80.24 million – comprising of sacral neuromodulation net revenue of $73.09 million and Bulkamid net revenue of $7.15 million.

Looking ahead to full year 2021, Axonics now expects total net revenue to be in the range of $186 million to $188 million, representing growth of approximately 67% to 69% over full year 2020 net revenue of $111.5 million. Previously, the company had forecast total net revenue to be in the range of $176 million to $180 million.

Given the strong commercial momentum for both SNM and Bulkamid, it is worth keeping an eye on Axonics, if this stock hasn’t caught your attention yet.

Cash position:

As of June 30, 2021, the company’s cash and cash equivalents totaled $231.1 million.

AXNX has traded in a range of $34.00 to $72.03 in the last 1 year. The stock closed yesterday’s (Aug.17, 2021) trading at $69.14, up 3.09%.

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