Senseonics (NYSE:SENS) shares remained mostly unchanged today on third-quarter results that came in mixed compared to the consensus forecast.
Shares of SENS dipped 0.3% at 51¢ apiece before the market opened today.
The Germantown, Maryland-based implantable continuous glucose monitor (CGM) maker posted losses of $24.1 million. That equals 4¢ per share on sales of $6.1 million for the three months ended Sept. 30, 2023. The company posted a 60% bottom-line gain while remaining in the red on sales growth of 31.9%.
Senseonics’ losses per share of 4¢ fell 1¢ behind expectations on Wall Street. Sales, however, beat projections of $5.61 million.
Highlights in the quarter included entering into a $50 million loan facility and completing a 365-day cohort in a study of its Eversense implantable CGM.
“The third quarter was marked by milestones across our development programs, commercial collaboration with Ascensia, and continued progress in strengthening our balance sheet,” said Tim Goodnow, president and CEO of Senseonics. “Completing the adult cohort of the ENHANCE 365-day pivotal trial, launching a new advertising campaign and finalizing a new loan facility all help position us to advance our plans to grow adoption of Eversense, the world’s only long-term CGM.”
Senseonics expects full-year revenues to land at the midpoint of the previously set $20 million to $24 million range.
The analysts’ view on Senseonics
BTIG analysts Marie Thibault and Sam Eiber maintained a “Neutral” rating for Senseonics. They felt that an accurate one-year sensor could potentially bring new patients onto Eversense. That applies to those who previously would not have considered an implantable monitor.
The analysts also noted potential iCGM designation expected in the first quarter of 2024. Senseonics submitted to the FDA for the designation during the previous quarter.
However, the analysts have worries around Eversense adoption that contributed to the Neutral rating. They cited ramp and valuation concerns in that regard.
“While we like the Eversense technology, we cannot yet say with certainty that adoption trends are nearing an inflection point,” they wrote. “We think a longer-duration sensor and iCGM designation will make the technology more appealing to a broader segment of the population, but until we see robust, sustained adoption of Eversense, we see a steep climb to reach the sales projections for 2024 and beyond.”