• Inari Medical Reports Fourth Quarter and Full Year 2020 Financial Results

    Source: Nasdaq GlobeNewswire / 09 Mar 2021 15:01:00   America/Chicago

    IRVINE, Calif., March 09, 2021 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”) a commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from venous diseases, today reported financial results for its fourth quarter and full year ended December 31, 2020.

    Fourth Quarter Revenue and Business Highlights:

    • Treated a record 4,600 patients, up 24% sequentially, driving revenue of $48.6 million, which was up 26% sequentially and 144% over the prior year period.
    • Introduction of multiple new products including the Triever 20 Curve, which along with FDA clearance for clot in transit, opens a new $200 million market opportunity.
    • Presentation of data from the CLOUT DVT registry showing excellent safety and effectiveness in the most challenging subset of patients with chronic clot.
    • Ended the quarter with $164.2 million in cash, cash equivalents, and short-term investments.

    “During Q4 we made important progress in our mission to treat and transform the lives of our patients,” said Bill Hoffman, CEO of Inari Medical. “We treated a record number of patients, expanded our commercial footprint, presented positive data on chronic clot patients, introduced two new products which expand our addressable market and completed our first patient treatments in Europe. Our team continues to execute crisply on all five of our growth drivers. We remain committed to our cause, and we are thankful for the opportunity to serve our patients, teammates, and customers.”

    Fourth Quarter 2020 Financial Results
    Revenue was $48.6 million for the fourth quarter of 2020, compared to $38.7 million for the prior quarter and $19.9 million for the fourth quarter of 2019. The increase over prior year figures was driven by continued US commercial expansion and increased product adoption.

    Gross profit for the fourth quarter of 2020 was $44.9 million compared to $17.7 million for the fourth quarter of 2019. Gross margin increased slightly to 92.4% for the fourth quarter of 2020, compared with 89.2% in the same quarter last year, due primarily to greater operating leverage.

    Operating expenses were $37.9 million for the fourth quarter of 2020, compared with $16.6 million in the same quarter last year. The increase was driven primarily by personnel-related expenses to fund expansion of the commercial, research and development, clinical and support organizations, as well as expenses related to being a public company.  

    Net income was $7.0 million for the fourth quarter of 2020 and net income per share was $0.14 on a weighted-average basic share count of 48.7 million and $0.13 on a diluted share count of 55.2 million, compared to net income of $0.4 million and an income per share of $0.06 on a weighted-average basic share count of 6.2 million and $0.01 on a diluted share count of 44.7 million in the same period of the prior year.

    Full Year 2020 Financial Results
    Revenue was $139.7 million for the full year of 2020, compared to $51.1 million in 2019.

    Gross profit for the full year of 2020 was $126.6 million compared to $45.2 million for 2019. Gross margin increased slightly to 90.6% for the full year of 2020, compared with 88.4% in 2019.

    Operating expenses were $108.1 million for the full year of 2020, compared with $44.4 million in 2019.

    Net income was $13.8 million for the full year of 2020 and net income per share was $0.43 on a weighted-average basic share count of 32.0 million and $0.27 on a diluted share count of 51.6 million, compared to a net loss of $1.2 million and a loss per share of $0.20 on a weighted-average basic and diluted share count of 5.9 million for the prior year.

    Cash, cash equivalents and short-term investments were $164.2 million as of December 31, 2020 compared to $24.0 million as of December 31, 2019. This reflects the completion of Inari’s underwritten public offering which raised a total of $164.4 million of net proceeds (after underwriting fees and offering expenses) and cash provided by operating activities, offset by the $20.7 million net repayment of debt and cash used in investing activities.

    COVID-19 and Guidance
    Despite ongoing challenges and uncertainties in its operating environment due to the COVID-19 pandemic, Inari Medical is providing financial guidance as follows:

    • For the first quarter of 2021, revenue of $54 to $56 million, and,
    • For the full-year 2021, revenue of $225 to $235 million.

    Webcast and Conference Call Information
    Inari Medical will host a conference call to discuss the fourth quarter financial results after market close on Tuesday, March 9, 2021 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live over the phone (833) 519-1265 for U.S. callers or (914) 800-3838 for international callers, using conference ID: 5271485. The live webinar can be accessed at https://ir.inarimedical.com.

    About Inari Medical, Inc.
    Inari Medical, Inc. is a commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from venous diseases. Inari has developed two minimally-invasive, novel catheter-based mechanical thrombectomy devices that are designed to remove large clots from large vessels and eliminate the need for thrombolytic drugs. The company purpose-built its products for the specific characteristics of the venous system and the treatment of the two distinct manifestations of venous thromboembolism, or VTE: deep vein thrombosis and pulmonary embolism. The ClotTriever system is 510(k)-cleared by the FDA and CE Mark approved for the treatment of deep vein thrombosis. The FlowTriever system is 510(k)-cleared by the FDA and CE Mark approved for the treatment of pulmonary embolism and cleared by the FDA for clot in transit in the right atrium.

    Forward Looking Statements
    Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include financial guidance regarding first quarter and full year 2021 revenue and the potential impact of COVID-19 on the business, and are based on Inari’s current expectations, forecasts and assumptions, are subject to inherent uncertainties, risks and assumptions that are difficult to predict and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2020 and in its other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.

    Investor Contact:
    Westwicke Partners
    Caroline Corner
    Phone +1-415-202-5678
    caroline.corner@westwicke.com


    INARI MEDICAL, INC.
    Consolidated Statements of Operations and Comprehensive Income (Loss)
    (in thousands, except share and per share data)
    (unaudited)

     Three Months Ended December 31,  Years Ended December 31, 
     2020  2019  2020  2019 
    Revenue$48,610  $19,887  $139,670  $51,129 
    Cost of goods sold 3,686   2,138   13,106   5,911 
    Gross profit 44,924   17,749   126,564   45,218 
    Operating expenses               
    Research and development 6,535   2,709   18,399   7,220 
    Selling, general and administrative 31,393   13,869   89,746   37,197 
    Total operating expenses 37,928   16,578   108,145   44,417 
    Income (loss) from operations 6,996   1,171   18,419   801 
    Other income (expense)               
    Interest income 75   23   484   89 
    Interest expense (75)  (238)  (1,135)  (920)
    Change in fair value of warrant liabilities    (395)  (3,317)  (957)
    Other expenses (11)  (205)  (662)  (205)
    Total other expenses (11)  (815)  (4,630)  (1,993)
    Net income (loss)$6,985  $356  $13,789  $(1,192)
    Other comprehensive income               
    Unrealized gain on available-for-sale securities 4      4    
    Comprehensive income (loss)$6,989  $356  $13,793  $(1,192)
    Net income (loss) per share               
    Basic$0.14  $0.06  $0.43  $(0.20)
    Diluted$0.13  $0.01  $0.27  $(0.20)
    Weighted average common shares used to compute net income
    (loss) per share,
                   
    Basic 48,742,302   6,226,610   32,033,827   5,887,542 
    Diluted 55,221,012   44,660,631   51,554,996   5,887,542 


    INARI MEDICAL, INC.
    Consolidated Balance Sheets
    (in thousands, except share data)
    (unaudited)

     December 31,
    2020
      December 31,
    2019
     
    Assets       
    Current assets       
    Cash and cash equivalents$114,229  $23,639 
    Restricted cash 50   50 
    Short-term investments 49,981    
    Accounts receivable, net 28,008   11,302 
    Inventories, net 10,597   3,953 
    Prepaid expenses and other current assets 2,808   464 
    Total current assets 205,673   39,408 
    Property and equipment, net 7,498   3,331 
    Restricted cash 338   338 
    Deposits and other assets 583   1,469 
    Total assets$214,092  $44,546 
    Liabilities, Mezzanine Equity and Stockholders' Equity (Deficit)       
    Current liabilities       
    Accounts payable$3,047  $2,549 
    Payroll-related accruals 8,198   5,225 
    Accrued expenses and other current liabilities 2,593   1,096 
    Total current liabilities 13,838   8,870 
    Notes payable, net    19,481 
    Warrant liabilities    1,169 
    Total liabilities 13,838   29,520 
    Commitments and contingencies (Note 6)       
    Mezzanine equity       
    Redeemable convertible preferred stock, par value $0.001, no shares authorized, issued, and outstanding as of December 31, 2020; 32,225,227 shares authorized, 31,968,570 shares issued and outstanding as of December 31, 2019; aggregate liquidation preference of zero as of December 31, 2020 and $54,415 as of December 31, 2019    54,170 
    Stockholders' equity (deficit)       
    Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020; no shares authorized, issued, and outstanding as of December 31, 2019     
    Common stock, $0.001 par value, 300,000,000 and 49,019,607 shares authorized as of December 31, 2020 and 2019, respectively; 49,251,614 and 6,720,767 shares issued and outstanding as of December 31, 2020 and 2019, respectively 49   7 
    Additional paid in capital 227,624   2,061 
    Accumulated other comprehensive income 4    
    Accumulated deficit (27,423)  (41,212)
    Total stockholders' equity (deficit) 200,254   (39,144)
    Total liabilities, mezzanine equity and stockholders' equity (deficit)$214,092  $44,546 


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