Boston-based Myomo (NYSE:MYO), Inc. (NYSE American: MYO), a medical robotics company, announced Monday that it has entered into a significant lease agreement for a new corporate headquarters and manufacturing facility in Burlington (NYSE:BURL), Massachusetts. This move marks a strategic expansion of the company's operations and facilities.
The lease, signed on August 9, 2024, with NDB Property Owner 1, L.P., encompasses approximately 36,208 square feet of space intended for office, research and development, and light manufacturing purposes. Myomo anticipates moving into the new premises by the end of 2024.
According to the terms of the lease, Myomo will begin paying fixed monthly rent six months after the landlord delivers the initial 28,705 square feet of space, expected by November 15, 2024. The company will pay $96,250 per month in the first year, with incremental increases each year, reaching $147,849 per month in the eighth year. An additional 7,503 square feet will become available by June 1, 2025.
The lease also stipulates that Myomo is responsible for its proportionate share of taxes, maintenance, and other operating expenses. Spanning approximately 88 months from the rent commencement date, the lease includes an option for Myomo to extend for an additional five years under specific conditions. The company also secured a tenant improvement allowance of $700,000.
In connection with this lease agreement, Myomo has provided a letter of credit to the landlord for $375,000, which is cash collateralized in the same amount.
In other recent news, Myomo has been the subject of significant developments. H.C. Wainwright has raised its price target for Myomo from $6.50 to $7.50, while maintaining a Buy rating on the stock. This comes after Myomo's Q2 2024 financial results, which saw total revenues of $7.5 million, surpassing the consensus estimate of $6.6 million. The company's net loss was $0.03 per share, notably better than the forecasted net loss of $0.07 per share.
In addition, Myomo has reported record results for Q2 2024, with a significant upswing in financial performance driven by Medicare fees for its MyoPro-powered arm braces.
This has led to record highs in revenue, patient pipeline growth, authorizations, and MyoPro orders and shipments. Myomo's revenue for the first half of 2024 increased by 20% over the previous year, and the company anticipates full-year revenue to reach between $28 million and $30 million.
InvestingPro Insights
As Myomo, Inc. (NYSE American: MYO) gears up for its strategic expansion into a new corporate headquarters and manufacturing facility, investors and stakeholders might be interested in the company's recent financial performance and market position. According to InvestingPro data, Myomo has a market capitalization of approximately $114.86 million, indicating a modest size within the medical robotics market. The company's stock has experienced substantial volatility, with a one-year price total return of an impressive 542.05%, showcasing significant investor interest and market dynamics over the past year.
Despite this remarkable return, the company's stock has faced some challenges recently, with a one-week price total return showing an 8.1% decline and a one-month return of -15.9%. This could reflect market reactions to various factors, including the company's financial outlook. Notably, Myomo operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, suggesting a degree of financial stability in the face of its obligations. However, it's important to note that analysts do not anticipate the company will be profitable this year, and Myomo is trading at a high Price / Book multiple of 11.93, which may raise valuation concerns among investors.
For those considering an investment in Myomo or monitoring its progress, the InvestingPro platform offers additional insights. There are currently 9 more InvestingPro Tips available at https://www.investing.com/pro/MYO, which could provide further guidance on the stock's potential and the implications of its financial metrics. As Myomo embarks on its expansion, these insights could prove invaluable for making informed investment decisions.
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