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MOUNTAIN VIEW, Calif. - NeuroPace, Inc. (NASDAQ: NPCE), a company specializing in medical devices for epilepsy treatment, has announced significant findings from a three-year study of its RNS® System, demonstrating a median seizure reduction of 82% in adults with drug-resistant focal epilepsy. The results were shared at the American Academy of Neurology Annual Meeting in San Diego, which took place from April 5-9, 2025. The company, with a market capitalization of $400 million and impressive revenue growth of 22% in the last twelve months, has maintained a strong gross profit margin of 74%.
The Post-Approval Study (PAS) enrolled 324 patients across 32 centers, marking it as the largest FDA-reviewed trial in neuromodulation for drug-resistant focal epilepsy to date. The data revealed not only a substantial median seizure reduction but also that 42% of patients achieved seizure freedom for at least six consecutive months. According to InvestingPro, the company maintains a healthy financial position with liquid assets exceeding short-term obligations, as evidenced by a strong current ratio of 5.37.
Focal epilepsy, the most common form of drug-resistant epilepsy (DRE), can lead to severe and frequent seizures that potentially result in cognitive impairment, depression, and a higher risk of sudden unexplained death in epilepsy (SUDEP). The RNS System, which is the only FDA-approved device that provides brain-responsive neurostimulation, has shown greater seizure reduction compared to other neuromodulation therapies.
The PAS's three-year safety and effectiveness data were submitted to the FDA in November 2024, with the study set to continue for a total of five years as part of its initial FDA approval. This data is expected to play a crucial role in guiding physicians' treatment decisions for patients with DRE.
NeuroPace's Chief Medical Officer, Martha Morrell, M.D., emphasized the unmet medical need in drug-resistant epilepsy, affecting an estimated 1.2 million people in the U.S. She noted the importance of the RNS System in providing control over seizures for those living with DRE. CEO Joel Becker expressed the company's commitment to improving the standard of care for people with drug-resistant epilepsy.
The company's forward-looking statements highlight the ongoing efforts to expand the RNS System's reach and its potential to address broader segments of the DRE patient population. With the stock showing significant momentum, gaining over 90% in the past six months, and four analysts revising their earnings estimates upward, investors seeking detailed analysis can access comprehensive financial metrics and additional ProTips through InvestingPro's exclusive research reports.
The information presented in this article is based on a press release statement from NeuroPace, Inc. Investors should note that the company's next earnings report is scheduled for May 8, 2025. For in-depth analysis and additional insights, including Fair Value estimates and financial health scores, visit InvestingPro, where you'll find exclusive research reports covering over 1,400 US stocks.
In other recent news, NeuroPace Inc. reported its fourth-quarter 2024 earnings, exceeding analysts' expectations with an adjusted earnings per share (EPS) of -$0.18 against the forecasted -$0.25. The company also outperformed revenue forecasts, reporting $21.5 million compared to the expected $20.91 million. NeuroPace confirmed its revenue guidance for fiscal year 2025, projecting growth between $92 million and $96 million, indicating a 15-20% increase. In a strategic move, the company announced it will cease distributing SEEG products by the fourth quarter of 2025 to concentrate on its RNS System. Despite this shift, NeuroPace maintains its 2025 revenue outlook and expects a cash flow breakeven by the end of 2027. Cantor Fitzgerald reaffirmed its Overweight rating on NeuroPace stock with a $20 price target, highlighting the company's potential to surpass expectations due to increased adoption of the RNS System. The firm also noted the expansion of Project CARE as a driver for incremental growth. NeuroPace's recent capital raise, aimed at a share buyback program, is expected to support the company's journey towards achieving positive cash flow.
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