ENGLEWOOD, Colo. - Zynex , Inc. (NASDAQ: NASDAQ:ZYXI), a medical technology company known for its noninvasive medical devices for pain management, rehabilitation, and patient monitoring, has announced a partnership with Veterans Affairs Medical (TASE:PMCN) Centers (VAMCs) across the United States. This collaboration aims to extend Zynex's reach into the VA's extensive healthcare system, which spends over $112 billion annually on medical care and serves more than 9 million veterans. According to InvestingPro data, Zynex maintains a strong financial position with an impressive 79.7% gross profit margin and a "GOOD" overall financial health rating.
The partnership is poised to significantly increase Zynex's market presence within the VAMCs, where its current sales constitute less than 1% of its total revenue. The VA healthcare network includes 171 VAMCs and over 1,100 outpatient facilities, as well as approximately 700 Military Treatment Facilities (MTFs) operated by the Department of Defense.
Thomas Sandgaard, CEO, Founder, and Chairman of Zynex, expressed the company's commitment to enhancing the quality of care for veterans by providing non-opioid pain management solutions. The sales team at Zynex is set to collaborate closely with healthcare providers within the VA and MTF networks to deliver its suite of pain management treatments.
Founded in 1996, Zynex has been developing and marketing medical devices aimed at pain management and rehabilitation, along with non-invasive monitoring systems for hospital use. This partnership reflects the company's strategic move to address the specific needs of the veteran population in pain management. The company has demonstrated consistent growth, with revenue reaching $193.7 million in the last twelve months and a healthy current ratio of 3.94, indicating strong liquidity. InvestingPro analysis reveals 12 additional key insights about Zynex's financial position and growth prospects.
Zynex's forward-looking statements indicate a positive outlook for the collaboration but also acknowledge the uncertainties and risks inherent in future business projections. The company's performance and financial results may vary from current expectations due to various factors, including market acceptance of new and existing products, competition, technological changes, and reliance on third-party manufacturers. For detailed analysis and comprehensive insights, investors can access Zynex's full Pro Research Report, available exclusively on InvestingPro, which provides in-depth coverage of the company's financial health, valuation metrics, and growth potential.
This new business venture with the VA is based on a press release statement and represents a significant step for Zynex in contributing to the care of U.S. veterans. The company has not provided details on the financial impact of the partnership or specific timelines for the rollout of its products across the VA network.
In other recent news, Zynex Inc. reported a slight increase in net revenue to $50 million and a net income of $2.4 million in its Q3 earnings call. The company also noted a 13% year-over-year order growth and projected a total revenue of $200 million for 2024. In addition, Zynex has completed clinical verification trials for its NiCO pulse oximeter at Duke University, a significant step towards seeking FDA approval. The device, which uses laser-based photoplethysmography monitoring technology, is expected to offer more accurate blood oxygen level measurements than the current LED-based devices. H.C. Wainwright maintained a positive stance on Zynex shares, reiterating a Buy rating and a $17.00 price target. As part of its expansion plans, Zynex aims to add 10 sales representatives monthly over the next 18 months. These are the recent developments from Zynex, as the company continues to make strides in the medical technology market.
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