KORU Medical Systems Reports Increased Revenues in Second Quarter

KORU Medical Systems has announced a notable increase in its second-quarter revenues, reporting an impressive 22% growth, reaching $8.4 million compared to the same period last year. This revenue surge is attributed to a robust 20% rise in the company’s core business, alongside positive developments in its Novel Therapies division. As the company moves closer to achieving cash flow breakeven, it has also revised upwards its revenue and gross margin guidance for the full year 2024.

### Key Takeaways
– Second-quarter revenue hit $8.4 million, reflecting a 22% year-over-year increase.
– Core business revenues expanded by 20% due to market growth and increased market share.
– Advances in the Novel Therapies segment, including successful feasibility results and entry into a Phase 3 trial.
– Regulatory approval was obtained in Japan for the FreedomEdge infusion system.
– Chris Pazdan has been promoted to Chief Operating Officer.
– KORU expects sustained growth in the U.S. SCIg market and continued international expansion.
– The goal is to secure six new drug approvals by 2026, with a reported gross margin of 65% for the quarter.
– The company ended the quarter with a cash balance of $10.5 million and anticipates a year-end projection above $8 million.

### Company Outlook
– The full-year 2024 revenue guidance and gross margin projections have been increased.
– KORU aims to achieve cash flow breakeven by the fourth quarter.
– The company expects Japan to contribute 5% to overall growth in 2025.

### Bearish Highlights
– Anticipated higher cash usage in the second half of the year due to capital expenditures and R&D investments.
– A potential slowdown in revenue growth is expected in the latter part of the year due to seasonal trends.

### Bullish Highlights
– KORU has reported a 46% growth rate in its international core business.
– Revenues from the Novel Therapies segment have increased by 50% compared to the previous year.
– The company has raised its revenue and gross margin guidance for the year.

### Misses
– No specific misses were noted in the context provided.

### Q&A Highlights
– Plans for Japan include expectations for it to become a key market for immunoglobulin (IG).
– The launch of prefilled products is on target, with innovations for prefilled users expected.
– Commercialization strategies for new Novel Therapies are being finalized, with launches anticipated in early 2025.
– Discussions for expansion into Canada are ongoing, with a launch expected in early 2025.
– The partnership with SCHOTT focuses on enhancing the Freedom system platform, with updates anticipated in 2025.

KORU Medical Systems continues to showcase strong financial growth, driven by both its core operations and progress in its Novel Therapies division. The company’s strategic initiatives, such as the promotion of key personnel and market expansion efforts, indicate a positive outlook. With a clear objective of achieving cash flow break-even and increasing revenue and gross margin projections, KORU positions itself for continued success within the medical systems industry.

### Conclusion
KORU Medical Systems remains committed to innovation and growth, with a robust second quarter highlighting the company’s financial health and strategic direction. The focus on operational efficiencies, combined with ongoing advancements in product development, suggests promising prospects for the company’s future trajectory in the competitive medical systems marketplace.