Clearpoint Neuro Inc. (NASDAQ:CLPT)

Clearpoint Neuro Inc. (NASDAQ:CLPT) ($4.04; $62.0M market cap) a leading platform neurosurgery company, announced Q2 2020 results:

• Sales of $2.5 million vs $2.6 million in the prior year and ahead of analyst estimates of $1.9 million

• Loss of $0.11 vs a loss of $0.13 in the prior year; ahead of analyst estimates a loss of $0.16

The second quarter of 2020 was significantly affected by the COVID-19 pandemic, which adversely impacted sales across all of our business lines...More than 80% of our procedures are deemed ‘elective,’ which generally resulted in the postponement or cancellation of such procedures to give our hospital customers the capacity for treating critical COVID-19 patients, which resulted in the completion of only 11 ClearPoint cases in April. As elective procedures resumed in certain cities, May case volume increased to 44 cases and June volume followed at 71 cases, representing approximately 90% of our pre-pandemic volume. Similarly, new capital placements and evaluations were effectively put on hold in the 2020 second quarter as hospitals dealt with the influx of COVID-19 patients... 

...On a more positive note, our biologics and drug delivery business increased 183% to $1.2 million, which we believe demonstrates that our strategy in this space continues to drive new business and to provide diversification in our revenue stream. While our customer-sponsored clinical trials cases were postponed as a result of the pandemic, our pre-clinical planning and clinical services continued to progress where possible...

...The pervasiveness of the pandemic continues to result in uncertainty as to the timing of the resumption to pre-pandemic levels of elective procedures, capital placements and customer-sponsored clinical trials. Accordingly, we are not yet providing a forecast for the balance of 2020. While we do not expect elective procedures to decline to the level seen in April, we anticipate, and have observed, that hospitals in cities struggling with COVID-19 cases will suspend elective procedures to ensure ventilator access and bed capacity. Furthermore, it should be noted that patients flow through a diagnostic and treatment process before they are referred to surgery. Accordingly, it follows that diagnostic work-ups delayed in March and April will cause the resulting surgeries to be similarly delayed. While we view the current situation as a temporary setback, our team continues to work tirelessly to execute on our four-pillar growth strategy, staying true to our course.”

Please join us as the CEO of Clearpoint Neuro Inc. (NASDAQ:CLPT), Joseph Burnett, discusses his company with GeoInvesting and meeting attendees. Participant Q&A is encouraged at the end of the presentation. Details at bottom.

Shortly after the LD microcap conference in December 2019, we began publishing our research on CLPT, a medical device company that develops and commercializes platforms for performing minimally invasive surgical procedures in the brain and heart under direct, intra-procedural magnetic resonance imaging (MRI) guidance. 

You can see our Reasons For Tracking and associated Call to Action here.

We also followed up the LD with an interview with the CEO to learn more about the story. We thought it would be a good idea to also introduce you to the CEO since the company recently reported its 2019 year end financials and with the stock falling sharply amid the Coranvirus scare. Given our knack for buying what feel our best in class medical device companies we think now is a good time to get an update from the company. 

Meeting Details:

Topic: ClearPoint Neuro, Inc. (CLPT) / GeoInvesting Virtual Meeting

Time: Mar 12, 2020 02:00 PM Eastern Time (US and Canada)

Join Zoom Meeting - https://zoom.us/j/152146075

Meeting ID: 152 146 075

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Maj & The GeoInvesting Team

ClearPoint Neuro (NASDAQ: CLPT) ($5.61; $85.5M market cap) (old symbol MRIC) a leading platform neurosurgery company, announced 2020 revenue guidance of $14 to $15 million representing approximately 25-35% growth. 

“We have evolved to become two companies in one,” continued Burnett. “On one side, we are a platform medical device company, consistently delivering double digit growth, and continuing to expand our installed base of neurosurgery centers in the U.S. Every year more surgeons and more patients gain access to the ClearPoint system and compatible disposable devices. On the other side of the business, we are a gene therapy and biologics enabling company, providing navigation, drug delivery, and case support to more than 20 companies in this exciting and growing space. Here we currently support pre-clinical and clinical efforts, but we believe that we are on the precipice of potentially explosive growth as these therapies progress through the regulatory process toward commercial launch. We feel that our company represents both scale and purpose through a unique combination of predictable device growth and a potential biologics opportunity, all supported under a common team dedicated to treating the most debilitating neurological disorders."

ClearPoint Neuro (NASDAQ: CLPT) ($5.61; $85.5M market cap) (old symbol MRIC) announced Q4 2019 results:

• Sales of $3.2 million vs $2.2 million in the prior year
• Loss of $0.11 vs loss of $0.11 in the prior year

 “We believe that 2019 exhibited a true inflection point in our Company’s history,” commented Joe Burnett, President and CEO of ClearPoint Neuro. “We delivered growth in all four segments of our business, driven by the performance of our commercial and clinical specialist teams that exceeded our plan. We made significant progress across our portfolio of navigation and therapy programs that we expect will result in U.S. FDA submission or market introduction of several new products in 2020, a testament to our development and operations teams. 

We encourage you to read the conference call transcript for a complete overview of the developments going on with the company. Two items we would like to highlight are the company’s entrance into gene therapy, and upcoming analyst day. 

Gene Therapy

In transactions that were completed in May of 2019 and January of 2020, we secured more than $25 million in financing from strategic partners that strengthened our balance sheet and facilitated us becoming a Nasdaq-listed company, an accomplishment driven by our finance and legal teams.

And finally, the culmination of all of these individuals parts enabled us to win multiple new biologics and gene therapy partnerships, which will lead to exciting new applications in the years ahead. It is not a coincidence that the totality of these developments led us to change our corporate names to ClearPoint Neuro, we feel we are a truly new company with an exciting future ahead…

...We are very excited about our increasingly proven partnership approach, as it further demonstrates the unique important – and important benefits of precise navigation and real-time monitoring for critical and high-cost clinical programs. We’re also thrilled in the confidence of many gene therapy companies that now feel commercial approval for these types of new to world therapies may be measured in the months ahead and not necessarily years.

Analyst Day

I hope that you can feel the excitement and optimism that we all share here at ClearPoint Neuro. We plan to publicly announce preliminary guidance for revenue in 2020 on Friday of this week at our Investor Analysts Day. Also, on Friday, we’ll help to expand on other aspects of what is taking place in the year ahead.

On December 27, 2019, we initiated a speculative starter position in MRIC based on the Company’s bullish long term outlook. You can see our interview summary note here.

Mri Interventions, Inc. (NASDAQ:MRIC)($5.14; $80.4M market cap) has changed its name to ClearPoint Neuro and will trade under the symbol CLPT starting today. The company will also be announcing its Q4 2019 results after the close today. 

On December 27, 2019, we initiated a speculative starter position in MRIC based on the Company’s bullish long term outlook. You can see our interview summary note here.