KORU Medical Systems announces 2024 Q1 financial results

KORU Medical Systems, Inc. reported financial results for the first quarter ended March 31, 2024.

“We are excited by a strong start to the year, with double-digit record revenue growth in our Core business and the addition of a new oncology collaboration in our Novel Therapies business,” said Linda Tharby, KORU Medical’s President and CEO. “The Core business saw another quarter of sequential growth in the subcutaneous immunoglobulin market, increasing prefill adoption rates, and further geographic expansion. As a part of our Novel Therapies strategy to expand the Freedom subcutaneous infusion system to new drug therapies, we are proud of the progress we’ve made in diversifying our drug pipeline and signing three new collaborations year-to-date. We also continued to drive operating leverage evidenced this quarter by gross margin expansion and a significant reduction in cash usage over the prior year. We are committed to our strategic growth agenda and providing increased value to our customers, patients, and shareholders.”

2024 first quarter financial results

Total net revenues increased $0.8 million, or 10.9%, to $8.2 million for the three months ended March 31, 2024, as compared with the same period in 2023. Domestic Core revenues increased by 4.1% from higher consumable volumes driven by new patients starts and share gains. International Core revenues increased by 63.1%, from higher consumable and pump volumes driven largely by increased Ig supply, increased penetration within approved indications, and geographic expansion. International orders were expedited for certain distribution partners of $0.26 million in March 2024 to ensure adequate inventory to fulfill patient needs in the event of a supply disruption related to the BSI regulatory review process. Novel Therapies net revenues declined by 21.3% primarily driven by a milestone completion for a collaboration agreement in the prior year period.

Gross profit increased $1.0 million, or 23%, to $5.1 million in the three months ended March 31, 2024, compared to $4.1 million in the same period in 2023. Gross margin increased to 62.3% compared to 56.1% in the first quarter of 2023. The increase in gross margin was primarily driven by production efficiencies from outsourced manufacturing and consolidation of US manufacturing sites.

Total operating expenses for the first quarter of 2024 were $7.1 million, a decrease of $0.1 million, or 1.9%, compared to $7.2 million in the prior year period.

Net loss for the first quarter of 2024 was $1.9 million, or $(0.04) per diluted share, compared to a net loss of $2.4 million, or ($0.05) per diluted share, for the same period of 2023. Adjusted EBITDA for the first quarter of 2024 was ($0.9) million, or ($0.02) per diluted share, compared to adjusted EBITDA of ($2.0) million, or ($0.04) per diluted share, for the same period of 2023. A reconciliation of adjusted EBITDA and adjusted diluted EPS is provided at the end of this press release.

Cash and cash equivalents were $10.8 million as of March 31, 2024, reflecting cash usage of $0.7 million in the first quarter of 2024.

2024 guidance
Reaffirming full year 2024 net revenue between $31.2 and $32.2 million, representing growth of 10% to 13%

• Gross margin between 59% and 61% for the full year 2024
• 2024 year-end cash balance greater than $8.0 million
• Cash flow breakeven in the fourth quarter of 2024 and cash flow positive for full year 2025

MB Bureau