An analyst at Wolfe Research, Mike Polark, has begun coverage of Beta Bionics (BBNX, Financial), assigning it an Outperform rating. Polark has set a target price of $20 for the stock, reflecting his positive outlook on the company's future performance.
BBNX Key Business Developments
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beta Bionics Inc (BBNX, Financial) reported a 36% year-over-year growth in net sales, reaching $17.6 million for Q1 2025.
- The company saw a 48% increase in new patient starts, with 3,853 new patients adopting the islet in Q1.
- The pharmacy channel adoption exceeded expectations, with over 20% of new patient starts reimbursed through this channel.
- Beta Bionics Inc (BBNX) increased its 2025 annual revenue guidance to $82-$87 million, up from $80-$85 million.
- The company is making significant progress in its innovation pipeline, including a patch pump and a bi-hormonal pump, with a target commercialization by the end of 2027.
Negative Points
- Gross margin decreased to 50.9% from 55.7% in Q1 2024, primarily due to the increased pharmacy channel mix.
- Operating expenses rose by 66% to $27.6 million, driven by the expansion of the field sales team and costs related to operating as a public company.
- The pay-as-you-go pharmacy model results in lower short-term revenue compared to the DME channel.
- There is a potential $1 million revenue headwind in 2025 due to the increased pharmacy channel mix.
- The company faces seasonal headwinds in new patient starts, which typically decline in Q1 as patients' deductibles reset.
