3Q: Cost reduced, Revenue Generation Continues

gammaCore Becomes the 1st Approved Medical Device to Treat Coronavirus-related Breathing Difficulty

Q1 2020: Progressing Slowly but Steady

gammaCore Received Clearance for Prevention of Migraine

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Healthcare

Medical Devices & Instruments

electroCore Inc.

Investment Appraisal
electroCore&#8217;s shares have been under pressure, lost 89% YTD following disappointing news in the first quarter. We believe the results have improved signaling to a more favorable second half of the year. The positive trend is attributed to the growth in revenue (+52%, $0.6mm) and total prescriptions written (+14%, 7,000 prescriptions), paid prescriptions (+27%, 3,000 prescriptions). 
The company has $41.1 million in cash and cash equivalents, as of&nbsp;June 30, 2019. Total operating expenses was&nbsp;$12.7 million in this quarter compared to $14.5 million in previous quarter. Research and development (R&amp;D) expenses were $2.5 million for the second quarter, 40% decrease compared to the $3.5 million reported in previous quarter). Sales, general and administrative (SG&amp;A) expenses decreased to $9.4 million for the second quarter of 2019, compared with $11 million&nbsp;(-15%) in the prior quarter. The differences were due to cost reduction and redeployment plan announced in May. Net cash burn for the quarter was approximately&nbsp;$11.2 million. The management anticipates quarterly cash burn to be less than&nbsp;$7 million&nbsp;through 2020. The company have adequate resources to fund its operations until 2021.
The revenue generated from the FSS was $119,000 (+260%) and from United Kingdom was $91,000 (+81%) in this quarter. The company continues its efforts to expand payer&#8217;s coverage. On August 11, electroCore announced an agreement with Doctors Medical LLC to distribute gammaCore to patients with workers&#8217; compensation injuries. We believe these channels continue to generate additional revenue for the company, while additional agreements are expected to finalize in H2 2019 &#8211; H1 2020. We remain positive and forecast a deeper penetration and revenue ramp up in the subsequent quarters. We are maintaining our estimates of $3 million, $9 million and $18 million in F2019, F2020 and F2021, respectively. We believe the subsequent quarters to soothe investor&#8217;s nerves with a completed restructuring and secured payer&#8217;s coverage. We reaffirm our Outperform rating and $11 price target.
We view the following catalysts to be meaningful for the shares;
<ul type="disc">
<li>Arrival of a new CEO in Q3 2019</li>
<li>Targeting FDA clearance for migraine prevention in Q4 2019</li>
<li>Achieve target of 100M covered lives Q4 2019</li>
<li>Agreement with Express Scripts and other payers H2 2019 &#8211; H2 2020</li>
</ul>

electroCore Inc. (ECOR)

Soothing Investors’ Migraine a Bit?

Fundamental Analysis:

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3Q: Cost reduced, Revenue Generation Continues (ECOR)

gammaCore Becomes the 1st Approved Medical Device to Treat Coronavirus-related Breathing Difficulty (ECOR)

Q1 2020: Progressing Slowly but Steady (ECOR)

gammaCore Received Clearance for Prevention of Migraine (ECOR)

Inbox Intel from Channelchek.