MINNEAPOLIS-based medical device company CVRx, Inc. announced the expansion of its Board of Directors with the appointment of two new independent members. Kevin Ballinger and Mitch Hill will join the board as Class I directors, effective today, with terms expiring at the 2025 annual meeting of stockholders.
The appointments follow the departure of Ali Behbahani, who resigned from the board effective Monday. With these changes, the number of directors on the CVRx Board has increased to seven.
The newly appointed directors, Ballinger and Hill, were selected for their qualifications and independence, meeting the Nasdaq Stock Market listing standards. Ballinger will contribute to the Nominating and Corporate Governance Committee, while Hill will serve on both the Audit Committee and Compensation Committee.
Both appointees are set to receive compensation in line with the company's non-employee director compensation program, details of which are available in the proxy statement for CVRx's 2024 annual meeting of stockholders.
CVRx, which specializes in surgical and medical instruments and apparatus, operates under the industrial name 08 Industrial Applications and Services and is incorporated in Delaware.
CVRx, a medical device company, announced significant developments regarding its Barostim implant procedure. The Centers for Medicare and Medicaid Services (CMS) has updated the procedure's classification for inpatient settings, leading to an increase in reimbursement from a range of $17,000 to $23,000 to approximately $43,000. This change will take effect on October 1, 2024.
In financial updates, CVRx reported a 24% increase in total revenue for the Q2, reaching $11.8 million, and forecasts total revenue between $50 million and $53 million for the full year of 2024, despite a net loss of $14 million in the same period. Analyst firms Piper Sandler and Canaccord Genuity have adjusted their price targets for CVRx, with Piper Sandler lowering it to $13 and Canaccord Genuity raising it to $15.
CVRx has made key executive appointments, including a new Chief Revenue Officer and Chief Medical Officer, aimed at strengthening market development and overcoming adoption barriers for its Barostim therapy.
InvestingPro Insights
As CVRx, Inc. strengthens its corporate governance with the addition of new board members, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, CVRx holds a market capitalization of approximately $214.81 million. Despite challenges, the company has achieved a notable revenue growth of 43.94% in the last twelve months as of Q2 2024, showcasing its potential in the competitive medical device sector.
InvestingPro Tips highlight that CVRx has more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, three analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's future performance. However, it's important to note that CVRx is currently not profitable and has been quickly burning through cash. For investors seeking a deeper dive into CVRx's financials and future prospects, InvestingPro offers additional tips and a comprehensive analysis at https://www.investing.com/pro/CVRX.
Despite the recent stock price volatility, with a strong return over the last month and three months, CVRx has experienced a significant hit over the last six months. This level of fluctuation indicates a need for investors to consider both the short-term gains and the longer-term performance trends when evaluating their investment decisions. For those looking for more investment guidance, InvestingPro provides a wealth of tips, with 10 additional tips currently listed for CVRx.
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