KORU Medical reports 23% Q4 revenue growth

MAHWAH, N.J. - KORU Medical (TASE:PMCN) Systems (NASDAQ: KRMD), a prominent medical technology firm specializing in subcutaneous infusion solutions, has announced its preliminary unaudited financial results for the fourth quarter and the full year ended December 31, 2024. The company expects to report $8.9 million in net revenues for the fourth quarter, marking a 23% increase from the previous year. For the full year, revenues are anticipated to reach $33.7 million, an 18% rise compared to 2023. According to InvestingPro data, KORU maintains a healthy gross profit margin of 62.8% and has delivered an impressive 84% return to investors over the past year.

KORU's President and CEO, Linda Tharby, expressed satisfaction with the company's performance, attributing the growth to successful strategic initiatives, including market share gains in the U.S., international expansion, and advancements in drug therapy offerings. Tharby also highlighted the company's improved margins and disciplined cash management, which resulted in a positive cash flow of $0.8 million for the quarter and reduced the full-year cash burn to $1.9 million, a significant improvement over the previous year. InvestingPro analysis reveals the company operates with a strong current ratio of 2.99, indicating robust liquidity, while analysts have set price targets ranging from $3.50 to $7.00 per share.

The company's ending cash balance stood at $9.6 million, and KORU is poised to carry its fourth-quarter momentum into 2025, focusing on upcoming catalysts aimed at establishing itself as a global leader in drug delivery. With a market capitalization of $181.5 million and trading near its InvestingPro Fair Value, investors can access detailed analysis and 10+ additional ProTips through InvestingPro's comprehensive research reports.

KORU Medical's product line includes the FREEDOM Syringe Infusion System, which comprises infusion drivers, precision flow rate tubing, and subcutaneous safety needle sets designed for both self-administration by patients at home and healthcare professional use in ambulatory infusion centers. The system has been FDA cleared since 1994 and is part of KORU's strategy to support biopharmaceutical companies during drug development and clinical trials.

The financial figures presented are subject to adjustment upon completion of audit procedures by independent accountants. KORU plans to release its audited fourth-quarter and full-year financial results in early March 2025. These preliminary results are based on a press release statement and may differ from final audited results.

In other recent news, KORU Medical Systems experienced robust growth in its third quarter, with a 17% increase in year-over-year revenue to $8.2 million. This growth was evident in both domestic and international markets, with a notable surge in Novel Therapies revenues, which rose by 276% to $600,000. The company's gross margin also improved to 63.4%.

KORU provided an updated timeline for its regulatory submissions, including a 510(k) for a next-generation device expected in mid-2025. In addition, the company raised its full-year revenue guidance, indicating a positive outlook for continued growth.

The company also plans to expand its core SCIG business and enter new markets. Six drug launches are expected by 2026, including a rare disease biologic and an oncology biologic. Furthermore, KORU aims to achieve cash flow breakeven in Q4 and operational cash flow positivity in 2025. These recent developments underscore KORU's commitment to growth and expansion in the medical device and therapies market.

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