$NURO The Rise Of Neurological Healthcare Devices
Neurological healthcare devices are no longer figments of fiction confined to the pages of Sci-fi novels. One of the most prominent producers of these neurological healthcare devices is NeuroMetrix, Inc. (NASDAQ: NURO), which is known for its Quell device that treats fibromyalgia and might become a viable treatment for Chemotherapy Induced Peripheral Neuropathy (CIPN). That said, NURO stock is in a unique position because of Quell’s promising prospects which gives it a significant edge in the healthcare industry and might help it rebound from its earnings fall last quarter.
NURO Fundamentals
Following its Q1 report, NURO stock dropped 30% as a result of declining revenues due to its DPNCheck device’s sales dropping because of screening program cancellations – including some from its largest Medicare customer. However, that drop might be an overreaction since the company’s first and only FDA-approved device for treating fibromyalgia – Quell – provides it with a significant edge in the market. With this in mind, Quell has also shown promising results in treating CIPN in clinical studies which might open up a new market for NURO.
Fibromyalgia Treatment
Fibromyalgia is a chronic pain disorder that affects around 10 million people in the United States. People with fibromyalgia experience a constant stream of painful episodes that drastically decrease patients’ quality of life. It is for that reason that there is a lot of demand for better fibromyalgia treatments. Quell’s rise in popularity in the medical industry is due to that very reason as it fulfills a previously unmet need for more effective fibromyalgia treatments by stimulating sensory nerves.
Quell was approved by the FDA in Q4 2022 and is showing impressive success since it has been prescribed 234 times by 92 physicians which indicates that Quell is gaining notoriety. Given its efficacy and the fact that it is the only device approved by the FDA for fibromyalgia treatment, it is likely going to experience a surge in sales as more physicians and healthcare providers familiarize themselves with Quell.
Chemotherapy Induced Peripheral Neuropathy (CIPN)
Not only does Quell treat fibromyalgia, but it has the potential to also treat CIPN – for which the company is currently performing clinical studies. CIPN is a medical term used to describe the damage done to the peripheral nerves as a result of chemotherapy, symptoms of which include loss of control over the extremities and bladder.
Around 650 thousand cancer patients in the US receive chemotherapy annually of which 68% report CIPN in the first 3 months and 30% after 6 months. These figures illustrate a growing need for CIPN treatment, which could possibly be provided thanks to Quell. If Quell is approved for treating CIPN, the device could provide NURO with substantial revenues.
Currently, NURO stock is in a phase 2 CIPN study consisting of 142 subjects. During the study, 50% of patients reported a reduction of systems for the active treatment as opposed to 30% who experienced the sham treatment. These results are positive since it means that there is a higher likelihood of Quell transitioning out of the pivotal trial phase and into the regulatory authorization phase.
Liquidity
As things stand, there is minimal risk of dilution associated with NURO stock since the company shared that it has enough liquidity for the coming year. With that in mind, NURO currently has an approved neuromodulator – Quell – in the market and also generates revenue from its diagnostic tool DPNCheck. Based on this, NURO has a steady stream of cash flow that could help it fund its pipeline without resorting to share offerings. At the same time, NURO has a low float of 7.6 million which is attractive for investors. In light of this, NURO stock could be poised to soar on any positive news – especially related to Quell.
NURO Financials
According to its Q1 2023 report, NURO’s assets decreased slightly QoQ from $24 million to $23 million and its cash balance was halved from $4.3 million to $2.3 million. On the other hand, its liabilities increased from $1.31 million to $1.59 million
NURO’s revenues decreased YoY from $2.3 million to $1.7 million due to the reasons mentioned above. That said, its operating expenses also increased from $2.7 million to $2.9 million, which in turn caused net loss to increase from $958 thousand to $1.5 million.
Technical Analysis
NURO Stock is in a neutral trend and is trading in a sideways channel between $0.90 and $1.30 which the stock has broken through recently. Looking at the indicators, the stock is above its 200, 50, and 21 MA which are bullish indications. Meanwhile, the RSI is overbought at 73 and the MACD is bullish to the upside.
As for the fundamentals, NURO’s Quell is the only FDA approved device for treating fibromyalgia which is likely to increase its revenue substantially. Additionally, it is in trials for CIPN treatment, which so far has produced favorable results. With the stock recently breaking through its sideways channel, investors could wait for a pullback as the RSI recalibrates before going long on NURO stock.
NURO Forecast
As things stand, NURO stock still has not recovered from its earnings drop. That said, NURO might be likely to make a full recovery due to the success of Quell. As the only device approved for fibromyalgia treatment, Quell could provide NURO with substantial revenues in the future, which may reflect on the NURO stock price eventually.
NURO Fundamentals
Following its Q1 report, NURO stock dropped 30% as a result of declining revenues due to its DPNCheck device’s sales dropping because of screening program cancellations – including some from its largest Medicare customer. However, that drop might be an overreaction since the company’s first and only FDA-approved device for treating fibromyalgia – Quell – provides it with a significant edge in the market. With this in mind, Quell has also shown promising results in treating CIPN in clinical studies which might open up a new market for NURO.
Fibromyalgia Treatment
Fibromyalgia is a chronic pain disorder that affects around 10 million people in the United States. People with fibromyalgia experience a constant stream of painful episodes that drastically decrease patients’ quality of life. It is for that reason that there is a lot of demand for better fibromyalgia treatments. Quell’s rise in popularity in the medical industry is due to that very reason as it fulfills a previously unmet need for more effective fibromyalgia treatments by stimulating sensory nerves.
Quell was approved by the FDA in Q4 2022 and is showing impressive success since it has been prescribed 234 times by 92 physicians which indicates that Quell is gaining notoriety. Given its efficacy and the fact that it is the only device approved by the FDA for fibromyalgia treatment, it is likely going to experience a surge in sales as more physicians and healthcare providers familiarize themselves with Quell.
Chemotherapy Induced Peripheral Neuropathy (CIPN)
Not only does Quell treat fibromyalgia, but it has the potential to also treat CIPN – for which the company is currently performing clinical studies. CIPN is a medical term used to describe the damage done to the peripheral nerves as a result of chemotherapy, symptoms of which include loss of control over the extremities and bladder.
Around 650 thousand cancer patients in the US receive chemotherapy annually of which 68% report CIPN in the first 3 months and 30% after 6 months. These figures illustrate a growing need for CIPN treatment, which could possibly be provided thanks to Quell. If Quell is approved for treating CIPN, the device could provide NURO with substantial revenues.
Currently, NURO stock is in a phase 2 CIPN study consisting of 142 subjects. During the study, 50% of patients reported a reduction of systems for the active treatment as opposed to 30% who experienced the sham treatment. These results are positive since it means that there is a higher likelihood of Quell transitioning out of the pivotal trial phase and into the regulatory authorization phase.
Liquidity
As things stand, there is minimal risk of dilution associated with NURO stock since the company shared that it has enough liquidity for the coming year. With that in mind, NURO currently has an approved neuromodulator – Quell – in the market and also generates revenue from its diagnostic tool DPNCheck. Based on this, NURO has a steady stream of cash flow that could help it fund its pipeline without resorting to share offerings. At the same time, NURO has a low float of 7.6 million which is attractive for investors. In light of this, NURO stock could be poised to soar on any positive news – especially related to Quell.
NURO Financials
According to its Q1 2023 report, NURO’s assets decreased slightly QoQ from $24 million to $23 million and its cash balance was halved from $4.3 million to $2.3 million. On the other hand, its liabilities increased from $1.31 million to $1.59 million
NURO’s revenues decreased YoY from $2.3 million to $1.7 million due to the reasons mentioned above. That said, its operating expenses also increased from $2.7 million to $2.9 million, which in turn caused net loss to increase from $958 thousand to $1.5 million.
Technical Analysis
NURO Stock is in a neutral trend and is trading in a sideways channel between $0.90 and $1.30 which the stock has broken through recently. Looking at the indicators, the stock is above its 200, 50, and 21 MA which are bullish indications. Meanwhile, the RSI is overbought at 73 and the MACD is bullish to the upside.
As for the fundamentals, NURO’s Quell is the only FDA approved device for treating fibromyalgia which is likely to increase its revenue substantially. Additionally, it is in trials for CIPN treatment, which so far has produced favorable results. With the stock recently breaking through its sideways channel, investors could wait for a pullback as the RSI recalibrates before going long on NURO stock.
NURO Forecast
As things stand, NURO stock still has not recovered from its earnings drop. That said, NURO might be likely to make a full recovery due to the success of Quell. As the only device approved for fibromyalgia treatment, Quell could provide NURO with substantial revenues in the future, which may reflect on the NURO stock price eventually.
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