The stock price of G Medical Innovations Holdings Ltd (NASDAQ: GMVD) increased by over 36% during intraday trading today. This is why it happened.
The stock price of G Medical Innovations Holdings Ltd (NASDAQ: GMVD) – a telehealth, medical device, and remote patient monitoring company providing clinical-grade solutions for consumers, medical professionals, and healthcare institutions – increased by over 36% during intraday trading today. Investors are responding positively to the company’s financial results for the 6 months ended June 30.
— Total revenues for the first half of 2021 increased by 45.5% to $2.925 million, compared to $2.01 million in the first half of 2020. And the increase in revenues is primarily attributable from monitoring services, and the positive impact of lifting of social restrictions related to Covid-19, which led to patients returning to their doctors for medical tests.
— Net loss for the first half of 2021 declined 39.3% to ($4.771 million), or ($0.51) per share, compared to ($4.981 million), or ($0.84) per share, in the six months ended June 30, 2020. The decrease is mainly attributed to the increase in revenues.
— Liquidity remains strong with cash and cash equivalents totaling $13.38 million, compared to $278,000 as of December 31, 2020. The increase compared to December 31, 2020, mainly reflects proceeds received from the Company’s IPO in the first half of 2021, less cash used in operations during the six months ended June 30, 2021.
“Our financial performance for the six months ended June 30, 2021, closes out a solid start to the first half of the fiscal year. Sales growth of more than 45% in the first half of the year shows that we are gradually recovering from the pandemic. We also believe the positive trends that were already underway prior to the COVID-19 pandemic are accelerating as telehealth is increasingly recognized as an essential technology by patients and healthcare providers. Blending physical, virtual, and automated care is a game changer for patients and providers alike. Based on our pipeline of existing opportunities for our Prizma and medical monitoring services, the engagement of GRS, a subsidiary of Guthy-Renker, to promote the Prizma G2 on TV, social media, radio and print through 2023, and the improvement in demand for our services, we remain optimistic about our growth prospects. In support of our growth strategy, we are expanding both Prizma evaluations and cardiac service monitoring opportunities with healthcare providers and expect to see recognition of these activities in 2022.”
“We are making significant, targeted investments during the second half of 2021, with increased sales and marketing capabilities, expansion of our medical monitoring technical teams while continuing to evaluate inorganic opportunities that could enhance our commercial portfolio. With a focus on investing for future growth, we believe the underlying fundamentals of our business are solid and that we are well positioned for the future.”
“The company has embarked on a significant expansion of its salesforce with the recent hiring of 5 experienced regional sales executives with plans to add an additional 20 sales representatives by the end of 2021. The expanded salesforce will be focused exclusively on the U.S. market to accelerate G Medical’s revenue through enhanced presence in new geographies, development of new channels and increased adoption by existing customers.”
— Dr. Yacov Geva, President and CEO of G Medical Innovations
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.