BrainsWay (BWAY)

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BrainsWay Reports Second Quarter 2021 Financial Results and Operational Highlights

https://finance.yahoo.com/news/brainsway-reports-second-quarter-2021-120000121.html

Strong Revenue Growth of 45% Year-over-Year in Q2 2021

Gained Meaningful Traction in Reimbursement for Deep TMS™ in both OCD and Depression

Conference Call to be held Today at 8:30 AM ET

BURLINGTON, Mass. and JERUSALEM, Aug. 11, 2021 (GLOBE NEWSWIRE) -- BrainsWay Ltd. (NASDAQ & TASE: BWAY) (“BrainsWay” or the “Company”), a global leader in advanced noninvasive neurostimulation treatments for mental health disorders, today reported second quarter 2021 financial results and provided an operational update.

Recent Financial and Operational Highlights

For the three months ended June 30, 2021, revenues were $7.0 million, a 45% increase as compared to the same period in 2020.

As of June 30, 2021, BrainsWay’s Deep TMS™ installed base was 682 total systems, a 20% increase from the installed base at the same point in the prior year.

As of June 30, 2021, the total number of OCD add-on helmets shipped was 247, representing OCD treatment capability on 36% of the Company’s installed base.

Achieved significant progress in reimbursement for Deep TMS in the treatment of OCD and depression

Received key positive coverage policies in OCD from Centene and Health Care Service Corporation (HCSC), a leading Blue Cross Blue Shield licensee, which collectively represent approximately 42 million covered lives

First draft Local Coverage Determination (LCD) published applicable to OCD by the Medicare Administrative Contractor (MAC), Palmetto GBA, which represents over 9 million covered lives

Multiple smaller private payors covering the Company’s depression treatment have continued the trend of decreasing the number of required prior medication failures from three or four to two

Received encouraging early data from completing patients in the Company’s controlled market release of Deep TMS for smoking addiction

Initiated the Company’s largest patient awareness campaign to date; early results have yielded an over 300% increase in patient inquiries for Deep TMS treatment during June and July

“We are pleased with our strong performance in the second quarter and the increasingly positive trends impacting our company,” stated Christopher von Jako, Ph.D., President and Chief Executive Officer of BrainsWay. “Our revenues of $7.0 million represented a substantial 45% increase over the pandemic-impacted second quarter of 2020, as our business continues to demonstrate significant momentum.”

“Importantly, we are beginning to gain meaningful traction in OCD reimbursement,
which we believe will be an important long-term growth driver in enhancing patient access to Deep TMS. Specifically, we received key positive coverage policies from Centene and HCSC, which collectively represent approximately 42 million covered lives. In addition, the first draft LCD was published proposing coverage applicable to the Deep TMS system for the treatment of OCD by Palmetto, a regional Medicare administrator, which represents over 9 million covered lives. This progress in reimbursement is already driving further interest in this strategic indication, with approximately two-thirds of recently shipped systems including an OCD add-on helmet. Moreover, we ended the second quarter with $55.9 million in cash, allowing us to operate the business from a position of financial strength,” concluded Dr. von Jako.

Second Quarter 2021 Financial Results

Total revenues for the second quarter of 2021 were $7.0 million, compared to $4.8 million in the second quarter of 2020, an increase of 45%. Quarterly recurring lease revenues were $3.6 million, slightly higher than the second quarter of 2020, and comprising approximately 51% of total revenues.

Gross margin for the second quarter of 2021 was 81%, compared to 79% for the second quarter of 2020.

Operating expenses for the second quarter of 2021 were $7.2 million compared to $4.0 million for the second quarter of 2020.

For the three months ended June 30, 2021, operating loss was $1.5 million compared to an operating loss of $215 thousand during the same period in the prior year.

As of June 30, 2021, the Company had cash and short-term deposits of approximately $55.9 million, compared to $17.2 million at December 31, 2020.

Conference Call and Webcast

BrainsWay’s management will host a conference call today, August 11, 2021, at 8:30 a.m. Eastern Time to discuss these results and answer questions.

Wednesday, August 11, at 8:30 AM Eastern Time:

United States:

877-407-3982

International:

201-493-6780

Conference ID:

13722002

Webcast:

http://public.viavid.com/index.php?id=146013

To listen to a live webcast, please visit the Investors section of the BrainsWay website at www.BrainsWay.com. Please access the Company’s website at least 10 minutes ahead of the conference call to register. The webcast replay will be available on the website for two weeks following the completion of the call.