On November 4, 2020 TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart and liver failure, reported financial results for the quarter ended September 30, 2020 (Press release, TransMedics, NOV 4, 2020, View Source [SID1234569898]).
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Recent Highlights
Net revenue of $7.1 million in the third quarter of 2020, representing a 2% decrease compared to the third quarter of 2019
Completed enrollment in OCS Heart DCD U.S. clinical program
Received FDA approval for OCS Heart DCD continued access protocol
"Our sequential growth in the third quarter was driven by the ongoing recovery in transplant activities in the United States in addition to the rapid enrollment and completion of our OCS Heart DCD U.S. trial," said Waleed Hassanein, MD, President and Chief Executive Officer. "We are actively engaged with FDA to complete the review of the additional OCS Heart EXPAND CAP data and the rescheduling of our OCS Heart FDA Advisory Committee meeting. We remain confident in our ability to have all three of our OCS products approved and commercially available in the second half of 2021."
Third Quarter 2020 Financial Results
Net revenue for the third quarter of 2020 was $7.1 million, a 2% decrease compared to $7.2 million in the third quarter of 2019. The slight decrease in revenue was predominantly a result of the lingering impact of the global COVID-19 pandemic through the third quarter.
Gross margin for the third quarter of 2020 was 71% as compared to 59% in the third quarter of 2019.
Operating expenses for the third quarter of 2020 were $9.6 million compared to $11.5 million in the third quarter of 2019. The decrease in operating expenses was due primarily to our cash preservation measures enacted earlier this year in response to the COVID-19 pandemic.
Net loss for the third quarter of 2020 was $5.1 million compared to $8.3 million in the third quarter of 2019.
Cash, cash equivalents and marketable securities were $132.7 million as of September 30, 2020.
2020 Financial Outlook
As previously announced, TransMedics is not providing annual guidance for 2020 due to the unpredictability of the duration and the magnitude of the impact of the COVID-19 pandemic.
Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Wednesday, November 4, 2020. Investors interested in listening to the conference call may do so by dialing (833) 378-1026 for domestic callers or (236) 712-2344 for international callers, followed by Conference ID: 1716957. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at www.transmedics.com.