CAESAREA, Israel - IceCure Medical Ltd. (NASDAQ:ICCM), a medical device company specializing in cryoablation technology, reported a 26% increase in product sales for the year ended December 31, 2023, compared to the previous year. The U.S. market demonstrated a 24% growth in sales, indicating a positive reception of the company's ProSense® System, which is used to freeze and destroy tumors as an alternative to surgical removal.
The company's financial results showed a modest increase in total revenues from $3.1 million in 2022 to $3.2 million in 2023, with a significant portion attributed to the ProSense® system and disposable probe sales. Despite the rise in product sales, the company experienced a decrease in gross profit from $1.4 million in 2022 to $1.3 million in 2023, with a corresponding drop in gross margin from 47% to 40%. This was partly due to a shift in revenue composition and a rise in the cost of revenues.
IceCure's operating expenses for 2023 totaled $16.9 million, a reduction from $18.2 million in the prior year, mainly due to decreased research and development and general and administrative costs. The company reported a net loss of $14.7 million, or $0.32 per share, a 14% improvement over the $17.0 million net loss, or $0.46 per share, from the previous year.
The company highlighted the completion of its ICE3 Breast Cancer Study, which showed a 96.39% local recurrence-free rate in patients treated with ProSense®. These results, along with those from independent studies, are expected to be submitted to the U.S. Food and Drug Administration (FDA) for review in April 2024.
IceCure also announced regulatory approvals of ProSense® in Brazil, Canada, and China, expanding its global footprint. The company has entered into distribution agreements and commenced procedures in new markets, including Portugal, India, and Brazil.
Looking ahead, IceCure has raised $3 million in gross proceeds from the sale of ordinary shares under its At-the-Market (ATM) offering facility. This capital, along with existing cash and cash equivalents of approximately $11 million as of March 31, 2024, is believed to support the company's clinical, regulatory, and commercial objectives for the year.
This article is based on a press release statement from IceCure Medical.
InvestingPro Insights
IceCure Medical Ltd. (NASDAQ:ICCM) has been navigating a challenging financial landscape, as evidenced by the latest data from InvestingPro. The company's market capitalization stands at $61.28 million, with a notably negative P/E ratio (adjusted for the last twelve months as of Q3 2023) of -3.93, reflecting investor concerns about profitability. Despite this, IceCure has demonstrated resilience with a strong return over the last six months, boasting a 53.88% total return, which is a testament to the market's optimism regarding the company's growth trajectory.
One of the InvestingPro Tips highlights that analysts anticipate sales growth in the current year, aligning with the company's reported 26% increase in product sales. This is a crucial factor for potential investors considering IceCure's future revenue streams. However, the company's cash burn rate is a concern, as another InvestingPro Tip indicates that IceCure is quickly burning through cash, which could impact its ability to sustain operations without additional funding.
Investors looking to delve deeper into IceCure's financial health and future prospects can find additional insights on InvestingPro. There are 11 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's position. To access these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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