Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Acarix AB (ACIXF, Financial) reported a remarkable 333% increase in CADScor systems installed, indicating strong market adoption.
- The company achieved an 88% growth in revenue from patch sales, showcasing the effectiveness of their subscription model.
- Acarix AB (ACIXF) successfully reduced operational expenses by 27%, demonstrating efficient cost management.
- The company secured a significant partnership with Geo-Med, enhancing their market reach and credibility.
- Acarix AB (ACIXF) obtained a new CMS reimbursement code, a critical step for expanding their market presence in the US.
Negative Points
- Despite growth, the company is not yet profitable and aims for break-even by the end of 2026.
- The integration and training required for the Geo-Med partnership may delay immediate sales impact.
- Acarix AB (ACIXF) still faces challenges in transitioning from CPT 3 to CPT1, which is crucial for reimbursement.
- The company is dependent on securing private payer agreements for fixed in-office reimbursement, which is still in negotiation.
- There is a reliance on achieving reimbursement success in the US, which remains uncertain and could impact future growth.
Q & A Highlights
Q: Can you elaborate on the significant growth metrics achieved in Q4 2024?
A: Aamir Mahmood, CEO, highlighted a 333% increase in CADScor systems installed, an 88% rise in patch revenue, and a 103% growth in patches sold. These metrics are crucial for the company's success, reflecting the effectiveness of their subscription model and strategic initiatives.
Q: What are the key strategic partnerships and their expected impact?
A: The partnership with Geo-Med is a major win, as they represent large MedTech organizations like Johnson & Johnson. This partnership is expected to significantly enhance Acarix's market reach, particularly within the VA and DoD, with anticipated results by Q2 or early Q3 2025.
Q: How is Acarix addressing reimbursement challenges in the US market?
A: Acarix has achieved a new CMS reimbursement code, allowing CADScor to be billed separately. This is a significant milestone, and the company is negotiating with major private payers to secure fixed in-office reimbursement, which is crucial for their US market strategy.
Q: What are the recent developments in clinical trials?
A: Acarix has launched a US performance trial with a major healthcare system in Oklahoma, aiming to enroll over 900 patients. Additionally, the UC Davis trial is halfway through enrollment, with full enrollment expected by Q3 2025. These trials are essential for transitioning from CPT 3 to CPT1 codes.
Q: Can you discuss the financial health and future outlook of Acarix?
A: The company reduced OpEx by 27% and increased global revenue by 45%. With a strong cash position and a runway of over 12 months, Acarix is optimistic about achieving profitability by the end of 2026, driven by operational efficiencies and strategic growth initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
