Senseonics (NYSE:SENS) shares dipped after hours today on second-quarter results that missed the consensus sales forecast.
Shares of SENS fell 4% to 39¢ apiece in post-market trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the day up nearly 1%.
The Germantown, Maryland-based long-term implantable CGM maker reported losses of $20.3 million. That equals 3¢ per share on sales of $4.865 million for the three months ended June 30, 2024.
Senseonics’ bottom line improved slightly on sales growth of 17.9%. The company’s earnings per share equaled expectations on Wall Street, but sales fell just shy of the forecast for $4.94 million.
The company said that the FDA review for the 510(k) submission for its next-generation 365-day Eversense system continues to advance. Senseonics anticipates a launch of the long-term CGM in the fourth quarter of 2024, as outlined in June.
Additionally, Senseonics said it recently began first-in-human testing for its Gemini system. The company has two non-Eversense sensors — Gemini and Freedom — under development. Gemini is a one-year sensor with battery for continuous and optional point-in-time reading. Freedom has no transmitter included in the system for direct communication between sensor and handheld device. The latest on Gemini is that testing began for the device designed as a self-powering system that includes a flash glucose monitor with no on-body component for people with type 2 diabetes. Brian Hansen, Ascensia and Senseonics’ president of CGM, explained the company’s future plans at ADA 2024.
“During the second quarter, the Eversense user base in the U.S. expanded and we advanced key strategic initiatives to position the company to successfully launch the 365-day Eversense system in the fourth quarter, pending anticipated FDA clearance,” said Tim Goodnow, president and CEO of Senseonics. “We are focused on executing the integration of the Eversense CGM + RPM solution with Mercy, preparing for launch of the 365-day Eversense product, and the progression of exciting offerings in our development pipeline. We envision these initiatives serving as the foundation for significant future growth.”
Senseonics continues to expect 2024 revenues in a range between $22 million to $24 million.
The analysts’ take
BTIG analysts Marie Thibault and Sam Eiber wrote that Senseonics expects a 365-day CGM approval to impact third-quarter product sales. However, with the plans to launch in the fourth quarter, the company then projects accelerated product sales.
Ascensia, the company’s exclusive commercial partner, has preparations for the commercial launch underway. Meanwhile, Senseonics established a wholly-owned subsidiary called Eon Care Services to help increase conversion rates. Eon, an in-house insertion network, complements the company’s nurse practitioner group partner and aims to increase access to Eversense.
Finally, the analysts say the company’s Mercy Health collaboration can also accelrate product revenue. Still, they want more evidence demonstrating the scalability of the Senseonics remote patient monitoring program.
The analysts maintained a “Neutral” rating.
“We are intrigued by new commercial initiatives like the Mercy partnership and Eon Care Services offering, but remain on the sidelines until we see consistent commercial execution and sales growth,” they wrote.
