Shares of medical-device maker Myomo (MYO) saw a nearly 6% increase to $4.01 in afternoon trading following the release of the company's preliminary results for the fourth quarter. Over the past 12 months, Myomo's stock has surged approximately 811%.
Based in Boston, Myomo reported that its projected revenue for the fourth quarter is expected to be between $4.6 million and $4.8 million, representing a 14% to 19% increase compared to the previous year. While analysts surveyed by FactSet had predicted slightly higher revenue at $4.9 million, the company's strong performance still impressed.
Furthermore, Myomo announced that as of January 1st, the Centers for Medicare and Medicaid Services has officially classified their product, MyoPro, as a brace eligible for lump sum reimbursement. This development has resulted in a backlog of approximately 230 patients as of December 31st, reflecting a 40% increase from the previous year.
With a year-end cash balance of around $8.7 million, Myomo is well-positioned to pursue future growth opportunities. CEO Paul Gudonis shared the company's ambitious target of achieving annual revenue of at least $100 million within the next five years—a clear indication of their confidence in their product and the market demand.
In addition to these positive updates, Myomo has successfully secured a direct offering of nearly 1.6 million shares of common stock to both new and existing institutional investors. This deal will raise approximately $6 million, providing further support for the company's expansion plans.
Myomo's strong financial performance and the endorsement from Centers for Medicare and Medicaid Services position them for continued growth in the medical-device market.
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