ReWalk Robotics CEO Issues Year-End 2023 Open Letter to Shareholders and Provides 2024 Commercial and Operational Priorities
https://finance.yahoo.com/news/rewalk-robotics-ceo-issues-end-130000615.html
MARLBOROUGH, Mass. and BERLIN and YOKNEAM ILLIT, Israel, Jan. 04, 2024 (GLOBE NEWSWIRE) -- ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”), today issued an open letter from Larry Jasinski, Chief Executive Officer, to shareholders detailing transformational achievements in 2023 and commercial and operating priorities for 2024. The full letter is published below:
Dear Shareholders,
On behalf of ReWalk and our Board of Directors, I want to wish everyone a happy, healthy, and safe new year. From the outset of ReWalk’s founding, the Company has collectively poured its collaborative efforts into manifesting our founder’s dream:
To deliver on the promise to fundamentally improve the lives of individuals living with physical or neurological injury and disability and specifically allowing large scale access to exoskeleton technologies.
In this spirit, 2023 was a profoundly transformational year in ReWalk’s history. We are proud to have made great progress in navigating the pathway to appropriate Medicare payment for our ReWalk Exoskeleton. We also expanded our operational foundation by acquiring and integrating the AlterG business into our family. Both achievements have positive commercial implications for our growth and path to profitability, and the advances that we have made are tangible and significant. Our most important accomplishments this past year include:
Progress with the Centers for Medicare & Medicaid Services (“CMS”) to finalize a new benefit category which took effect January 1, 2024 and establish a reimbursement rate, which means that we are very close to expanding access to our life-changing technology for all eligible Medicare beneficiaries.
Our acquisition and integration of AlterG which provides us scale and commercial capabilities to provide a broader portfolio of innovative rehabilitation solutions allowing us to capitalize on the expanding market for exoskeletons, both of which we believe will accelerate our path to profitability.
Successful achievement of FDA clearance for use of ReWalk Personal Exoskeletons on stairs and curbs, a breakthrough which improves quality of experience for our users by helping them walk in more settings and increase utilization.
These achievements serve as the foundation for our next stage of growth and goal to drive positive shareholder value. As such, the start of the new year is an opportune time to spotlight the Company’s 2024 commercial and operating plans.
Highlights of Commercial and Operational Priorities for 2024
We expect to build on our pace of Medicare claims submissions for reimbursement with the expected determination of the final payment rates:
The final Healthcare Common Procedure Coding System (“HCPCS”) decision to establish a reimbursement rate for the ReWalk Exoskeleton is expected in February 2024 with an effective date of April 1, 2024.
We enter the new year with momentum and operational processes in place to drive growth in new Medicare claims in 2024 at a substantially increased pace compared to 2023.
We continue to synergistically integrate ReWalk and AlterG:
Our sales team is working to combine product offerings and sales territories for greater penetration of the potential clinical customer base.
Our sales and marketing programs are striving to expand awareness of our technologies to the prescribing physicians, physical therapists, and clinical community to build a broader and higher quality referral network and sales pipeline.
We are working to unify our staff of clinical trainers and network of field service engineers to provide comprehensive training capabilities and responsive technical support.
Our focus on advancing new innovations to market remains unabated:
We plan to submit a 510(k) application to the FDA during the first quarter of 2024 for the next-generation ReWalk 7 Personal Exoskeleton.
The company anticipates the mid-2024 launch of a new model of the AlterG anti-gravity systems with new features that will better address the needs of an underpenetrated market segment of smaller, independent clinics.
Significant progress in growing our business and driving a multi-year path to profitability:
We are implementing a cost structure optimization plan which includes a 15% reduction in force implemented at the end of 2023.
We plan to continue to further institute organizational and policy integrations to gain greater operating efficiency as all management functions consolidate under one team.
Lastly, our determination to maintain ReWalk’s Nasdaq listing remains resolute. We anticipate the final reimbursement rate determination by CMS and our first reimbursement payment may drive an increase in value of our share price during the current extension period with Nasdaq which continues through March 31, 2024.
The moves we have made drive growth in our business and are essential to our multi-year pathway to profitability. We look forward to sharing on our 2023 year-end earnings call our revenue and earnings outlook for 2024 and how the operating efficiencies that we’re executing against contribute to our commitment to reach non-GAAP operating profitability by 2026.
In conclusion, we are excited for what’s to come for ReWalk and all of our team members. Management will be in attendance at various upcoming investor conferences including participating in activities during the J.P. Morgan Healthcare Conference in San Francisco on January 8-10, 2024. We look forward to engaging with our stakeholders and providing future updates in our effort to transform the lives of the thousands of people who can benefit from our innovative technologies.
Warm regards,
Larry Jasinski
ReWalk Robotics CEO
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