Intersect ENT (NSDQ:XENT) shares jumped yesterday 11% to reach a peak of $13.20 apiece after the company released its preliminary financial results for the 4th quarter, narrowly beating analysts’ expectations on Wall Street.
The Menlo Park, Calif.-based company said it expects a total revenue of $24.o – $24.2 million for Q4, slightly ahead of the consensus on The Street, where analysts were looking for sales of $23.1 million.
“We are very pleased with our strong quarter and great year. Simply put – and our results bear this out – positive outcomes for chronic sinusitis patients continue to be our focus,” president & CEO Lisa Earnhardt said in prepared remarks. “Our preliminary financial results demonstrate wide acceptance of the use of our products, with now more than 150,000 patients having been treated. In addition, our product pipeline is robust with positive outcomes in both the Propel Contour and the Resolve product pivotal clinical studies. We believe our long-term goal of treating chronic sinusitis patients across the continuum of care will be realized over the next few years.”
Intersect pegged its revenue for the year somewhere between $78.5 – 78.7 million, while analysts predict it will be closer to $77.5 million.
XENT shares were trading at $12.80 apiece in mid-morning activity today, down -1.9%.
Shares in the company fell over 30% in November after the Centers for Medicare & Medicaid Services released its 2017 Hospital Outpatient Final Rule, which included reimbursement rates for sinus surgery at a fixed amount nearly 50% below the current average amount.
In October, the company’s Resolve sinus implant met both primary endpoints in the Resolve II pivotal trial. The Resolve steroid-releasing sinus implant is a minimally invasive treatment for patients with recurrent ethmoid sinus obstruction. The 300-patient Resolve II trial compared the bilateral Resolve implant with a sham procedure.
The study evaluated the change in polyp grade after 90 days using video endoscopy, showing a statistically significant reduction for patients receiving the implant. The treatment group also experienced a reduction in sense of nasal obstruction and congestion. There was a single incidence of intranasal bleeding, a serious adverse event.
Intersect said it plans to use the data to back its bid for FDA approval of the device.
