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ROCKAWAY, N.J. - electroCore, Inc. (NASDAQ:ECOR), a bioelectronic medicine company with a market capitalization of $46.4 million and impressive gross margins of 85%, has been awarded a new Federal Supply Schedule contract by the Veterans Affairs (VA) FSS Service, set to run from June 15, 2025, through June 14, 2030. This new contract follows an extensive review by the VA, which recently terminated numerous contracts deemed non-essential or redundant. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt, though it faces challenges with rapid cash burn.
The company’s CEO, Dan Goldberger, expressed gratitude for the VA’s continued support, especially following the VA’s recent audit that resulted in the termination of 585 contracts on March 3, 2025. Goldberger highlighted the importance of the gammaCore therapy, a non-opioid solution for treating migraines, which has seen increased demand in VA hospitals during February and March after a slight dip in January. The company’s revenue growth stands at 57% year-over-year, though InvestingPro data shows the stock has experienced significant pressure, falling more than 13% in the past week alone.
The new five-year agreement includes standard revisions such as prompt pay discounts and volume rebates for annual revenues exceeding $10 million. electroCore will maintain operations under its current contract until the new agreement takes effect in June 2025.
electroCore specializes in non-invasive vagus nerve stimulation (nVNS) technology, offering medical devices for managing specific health conditions and consumer products aimed at general wellness. The company operates in the United States and select international markets.
Investors should note that this announcement is based on a press release statement from electroCore, Inc. The company’s forward-looking statements reflect current expectations and may differ from actual results. Investors are advised to consult the information provided and consider the risk factors disclosed in electroCore’s filings with the SEC, as well as the detailed Pro Research Report available exclusively on InvestingPro, which provides comprehensive analysis of the company’s financial health and growth prospects.
In other recent news, electroCore Inc. reported a notable 57% increase in revenue for the fiscal year 2024, reaching $25.2 million, compared to $16.0 million in 2023. The company’s gross margin also improved, rising to 85% from 83% the previous year. Sales through the VA/DoD channel were a significant revenue driver, contributing $17.8 million, marking an 85% year-over-year growth. ElectroCore’s fourth quarter sales amounted to $7.0 million, an 8% increase from the third quarter.
H.C. Wainwright reiterated a Buy rating on electroCore, maintaining a price target of $25.00 per share, based on the company’s strong financial performance and strategic partnerships. ElectroCore’s recent acquisition of NeuroMetrix and distribution agreement with Spark Biomedical are expected to support future revenue growth, despite potential challenges in the VA/DoD sales channel. The company is also expanding its presence in the U.S. chronic pain and wellness markets, with the launch of the Truvega wellness product line.
While electroCore did not provide specific guidance for 2025, H.C. Wainwright conservatively projects revenues to reach approximately $30 million. Despite the positive financial results, the company’s stock experienced a decline in aftermarket trading, reflecting investor concerns over future guidance and strategic challenges.
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