Truist has started coverage on Beta Bionics (BBNX, Financial) with a Buy rating and set a price target of $26. Beta Bionics, the latest entrant in the U.S. pump market, offers an innovative algorithm designed to simplify setup and use for both patients and healthcare professionals while delivering competitive results. Feedback from physicians highlights that Beta Bionics' focus aligns with the market's needs for automation, streamlined setup, and future integration of glucagon/insulin delivery.
The firm anticipates that Beta Bionics will capture a 5%-6% share of the $3 billion U.S. pump market by 2028. This growth is expected to support a robust compound annual revenue growth rate of over 37% from 2024 to 2028.
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.
