13-05-2025
Acarix AB (ACIXF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Strategic Challenges
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Acarix AB (ACIXF) reported a 46% increase in systems delivered in the US compared to Q1 2024.
Patch sales surged by 104% in the US, indicating strong adoption of their subscription model.
The company achieved a 30% increase in top-line revenue, showcasing robust financial performance.
Acarix AB (ACIXF) won the 2025 Digital Innovation Award, enhancing its reputation in the medical device industry.
The partnership with Geomed is expected to expand opportunities within the Department of Defense and Veteran Affairs in the US.
A strategic sale led to a 10-point drop in gross margin, impacting profitability.
Reimbursement challenges remain, with fixed reimbursement timelines largely outside the company's control.
Operating expenses were reduced by 6%, but the company still faces a net loss of 14.1%.
The transition to CPT1 reimbursement is dependent on external approvals, creating uncertainty.
The company faces challenges in increasing awareness and understanding of its technology in the market.
Warning! GuruFocus has detected 3 Warning Signs with ACIXF.
Q: Can you provide an update on the impact of geopolitical and macroeconomic factors on Acarix's operations? A: Aamir Mahmood, CEO, stated that while geopolitical changes and tariffs have a minimal impact on Acarix due to their operations being based in Sweden and Denmark, a 10% tariff does slightly affect margins. The company is hopeful for stabilization in the coming months.
Q: How has Acarix's financial performance been in Q1 2025? A: The CEO reported a 30% increase in top-line revenue, with a strategic sale impacting gross margins by 10 points. Total revenue rose by 11% compared to Q1 2024, and there was a 46% increase in systems delivered in the US.
Q: What are the key highlights from Acarix's partnership with Geomed? A: The partnership with Geomed is expected to enhance opportunities within the Department of Defense and Veteran Affairs in the US. Initial engagements have been promising, with several meetings and one proposal already submitted for approval.
Q: Can you elaborate on the reimbursement landscape for Acarix's products? A: Reimbursement remains a challenge, but the average national reimbursement is $387. Acarix is actively engaging with over 50 private payers, covering 97% of the US market, to establish fixed reimbursement policies.
Q: What are the future strategic initiatives for Acarix? A: The company is focused on clinical trials, particularly for the CPT1 transition, and aims to secure fixed reimbursement by Q3 2025. They are also expanding their marketing efforts and exploring new distribution partnerships.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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