Avinger Announces Strategic Moves in Q2 2024

Avinger, Inc. Reports Q2 2024 Financial Results and Strategic Developments

Avinger, Inc., a medical device manufacturer specializing in image-guided treatments, has disclosed its financial performance for the second quarter of 2024. Notably, the company has formed a partnership with Zylox-Tonbridge to penetrate the Greater China market and has improved its financial standing by converting debt and executing a public offering.

In addition to these strategic moves, Avinger is optimizing its operations through a significant reduction in workforce and is prioritizing the development of its coronary products. This includes plans to file for an Investigational Device Exemption (IDE) with the FDA for its chronic total occlusion (CTO) crossing device.

Key Takeaways

• Avinger’s revenue for Q2 2024 totaled $1.8 million, with a gross margin at 20%.
• The company cut its operating expenses to $4.5 million and reported a net loss of $4.4 million.
• Cash and cash equivalents at the end of the quarter stood at $8.8 million.
• Avinger converted $11 million of debt into convertible preferred stock and announced a public offering potentially worth up to $24 million.
• The company plans to submit an IDE application for its CTO crossing device by the end of Q3 2024.
• Dr. Tom Davis has been appointed as Chief Medical Officer, promoting the commercialization of new peripheral products.

Company Outlook

• Avinger is gearing up for the full commercial launch of the Pantheris LV atherectomy catheter.
• The company anticipates improved gross margins and reduced operating expenses in the latter half of 2024.
• The IDE submission for the CTO crossing device is expected soon, with a clearance timeline of approximately four to six months.

Bearish Highlights

• Total revenue dipped from $1.9 million in Q1 2024 and $2 million in Q2 2023.
• The gross margin fell to 20% in Q2 2024, down from 30% in the same quarter last year.
• Although the net loss improved from $5.5 million in Q1 2024, the reported loss remains significant.

Bullish Highlights

• Avinger’s strategic alliance with Zylox-Tonbridge offers promising opportunities in the vast Greater China market.
• The company’s financial health has improved with debt conversion and a successful public offering.
• Avinger is optimistic about the cost-saving benefits and reimbursement prospects associated with its coronary device.

Challenges

• Despite a reduction in losses, Avinger continues to face hurdles, including a $4.4 million net loss.
• The decrease in gross margins from the previous year is concerning.

Q&A Highlights

• CEO Jeff Soinski expressed confidence in the coronary CTO crossing device’s potential to enhance treatment outcomes.
• A small pilot study involving five to ten patients for the coronary device is anticipated.
• The company plans to efficiently enroll patients and aims to file for a 510(k) based on clinical data in 2026.

Avinger’s strategic choices in Q2 2024 reflect its commitment to its financial stability and advancing its product pipeline. With the impending IDE filing and new product commercialization, the company appears well-positioned for notable progress in the medical device landscape.