Silk Road Medical (NASDAQ:SILK), a company focused on reducing the risk of stroke and its devastating impact, stock fell 5.06% (As on July 12, 11:50:44 AM UTC-4, Source: Google Finance) after the company is downgraded by stock analysts at Citigroup from a “neutral” rating to a “sell” rating. Citigroup currently has $33.00 price target on the stock.
On the other hand, the company has recently announced a prospective study to evaluate the TCAR system in the treatment of standard surgical risk patients with carotid artery disease. The post-market study, called ROADSTER 3, will fulfill the U.S. Food and Drug Administration’s (FDA) condition of approval for the recent expansion of labeling for the ENROUTE Transcarotid Stent System, which now includes patients at high and standard risk of complications from carotid endarterectomy (CEA). The company has also announced that the Centers for Medicare and Medicaid Services (CMS), through collaboration with the Society of Vascular Surgery’s Patient Safety Organization (SVS PSO) and their Vascular Quality Initiative (VQI), has expanded coverage for TCAR to include standard surgical risk patients within the VQI’s TCAR Surveillance Project (TSP). This decision is effective immediately.
Meanwhile, the company reported net loss of $16.7 million in the first quarter of 2022, or $0.48 per share, as compared to a loss of $10.7 million, or $0.31 per share, in the corresponding period of the prior year. Revenue for the first quarter of 2022 was $28.0 million, an increase of $6.0 million or 27%, compared to the first quarter of 2021. Growth was driven primarily by growing TCAR adoption. Gross profit for the first quarter of 2022 was $19.4 million compared to $16.5 million for the first quarter of 2021. Gross margin for the first quarter of 2022 decreased to 69% compared to 75% for the first quarter of 2021. Gross margin was primarily impacted by unfavorable production variances due to impacts from COVID-19 as well as manufacturing expansion costs in Minnesota. Operating expenses were $35.4 million for the first quarter of 2022, compared to $26.7 million in the comparable prior year period, which represents an increase of 33%. Cash and cash equivalents were $93.6 million as of March 31, 2022.
Silk Road Medical projects revenue for the full year 2022 to range from $127 million to $132 million, which represents 25% to 30% growth over the company’s prior year revenue.