Senseonics Reports Q3 2024 Results and FDA Approval of Eversense 365
Key Insights
Senseonics (search) Holdings reported a Q3 2024 revenue of $4.3 million, a decrease from $6.1 million in Q3 2023, impacted by inventory transition to Eversense 365 (search).
The company achieved FDA approval for Eversense 365 (search), the first 365-day continuous glucose monitoring (CGM) system, marking a significant milestone.
Senseonics (search) is implementing restructuring efforts targeting $10 million in cost reductions by 2025 and anticipates $22 million in global revenue for 2024.
Senseonics (search) Holdings, Inc. (NYSE American: SENS) announced its financial results for the third quarter of 2024, alongside the FDA approval of its Eversense 365 (search) continuous glucose monitoring (CGM) system. The company's total revenue for Q3 2024 was $4.3 million, down from $6.1 million in the same period in 2023. This decrease is attributed to inventory adjustments as the company transitions from Eversense E3 (search) to the new Eversense 365 system. Despite the revenue dip, the FDA approval and initial commercial patient insertion represent significant achievements for Senseonics.
Financial Performance
Breaking down the revenue figures, U.S. revenue was $2.4 million in Q3 2024, compared to $3.9 million in Q3 2023. Revenue outside the U.S. was $1.9 million, down from $2.2 million in the prior year period. The company reported a gross loss of $4.1 million for the quarter, a stark contrast to the $1.2 million gross profit in Q3 2023. This shift is primarily due to one-time charges of $4.8 million related to the transition to Eversense 365 (search).
Operating expenses showed mixed results. Research and development expenses decreased by $2.3 million year-over-year to $10.5 million, while sales, marketing, and general & administrative expenses increased by $0.9 million to $8.3 million. The net loss for Q3 2024 was $24.0 million, or $0.04 per share, nearly identical to the $24.1 million loss in Q3 2023.
As of September 30, 2024, Senseonics (search) held $74.8 million in cash, cash equivalents, restricted cash, and short-term investments, with outstanding indebtedness of $55.9 million. Subsequent to the quarter's end, the company received $16.0 million from a recent financing.
Eversense 365 Approval and Commercialization
The highlight of the quarter was the FDA approval of Eversense 365 (search), the first continuous glucose monitoring (CGM) system approved for up to 365 days of use. "We received FDA approval for Eversense 365 in the third quarter, and Mercy (search) completed the first commercial patient insertion of our new sensor last month. This marks a significant achievement for Senseonics (search) and establishes us as the world’s first and only 365-day CGM," said Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics.
Ascensia Diabetes Care (search), Senseonics (search)’ global commercial partner, is leading the commercialization efforts. Brian Hansen, President of CGM at Ascensia, stated, "Eversense 365 (search) meets those criteria and provides a truly unique solution for patients with Type 1 and Type 2 diabetes (search)... We are working hand in hand with Senseonics management to ensure a successful launch of Eversense 365, and we are thrilled to see such strong early enthusiasm for this innovative and differentiated technology."
Strategic Initiatives and Outlook
Senseonics (search) is actively working to strengthen its financial position. The company raised over $20 million from equity offerings and is implementing a restructuring plan targeting $10 million in cost reductions by 2025. For the full year 2024, Senseonics anticipates global net revenue of approximately $22 million, driven by the transition to Eversense 365 (search). The company expects to more than double U.S. new patient starts and increase its global installed base by approximately 50% compared to 2023. Cash utilization in 2024 is projected to remain consistent with 2023, at around $70 million.
Mercy Collaboration
Mercy (search) health system inserted the first commercial Eversense 365 (search) patient and anticipates that up to 30,000 of Mercy’s patients could benefit from a CGM system. This collaboration underscores the potential impact of long-term CGM technology in managing diabetes (search) and improving patient outcomes.