Analysis of Performance:
Neuronetics, Inc. has shown steady growth over the past year, with a 19% increase in U.S. revenues from 2021 to 2022. The company's NeuroStar Advanced Therapy System has gained a strong foothold in the medical technology market, with an estimated 147,431 global patients treated and over 5.3 million treatment sessions through December 31, 2022. The company generated a total revenue of $65.2 million in 2022, an increase of $9.9 million from the previous year, with the majority of the revenue coming from recurring treatment sessions.
Neuronetics, Inc. boasts a diverse customer base of psychiatrists in group psychiatric practices in the United States, targeting an estimated 50,000 psychiatrists across 26,000 practices. The company has received regulatory approval for its NeuroStar Advanced Therapy System in Japan and obtained reimbursement coverage starting June 1, 2019, for patients treated in the largest inpatient and outpatient psychiatric facilities in Japan.
However, the company still faces potential headwinds from the COVID-19 pandemic that caused significant disruptions in the first quarter of 2022 and in the years ended 2021 and 2020. The company's ability to continue its growth trajectory may be impacted by the potential resurgence of COVID-19 due to new variants or otherwise, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic, vaccination rates, and containment measures.
Forward Looking Analysis:
The outlook for Neuronetics, Inc. remains promising, with continued growth opportunities in the medical technology market. The company's NeuroStar Advanced Therapy System has gained acceptance as a safe, clinically effective, reproducible, and precise therapy that has proven to stimulate specific areas of the brain associated with mood effectively. The company is focused on hardware and software product developments and enhancements of its NeuroStar Advanced Therapy System and clinical development relating to additional indications.
As the company continues to expand its sales and customer support team, and penetrates the market further by demonstrating the benefits of its NeuroStar Advanced Therapy to psychiatrists and their MDD patients, it may be able to continue its steady growth trajectory. Furthermore, the company's entry into the Japanese market is an encouraging sign, with further potential upside in the coming years from international revenues. However, Neuronetics, Inc. remains vulnerable to the potential resurgence of COVID-19 and the effects it may have on its supply chain, employees, and other business partners. Investors must remain cognizant of the potential risks the company faces as it expands and maintains its market positioning.