Shares of Neovasc Inc (US) (NASDAQ:NVCN) fell -6.74% to reach at $0.750 during the course of session. The company has experienced volume of 4.23M shares while on average the company has a capacity of trading 2.01M shares.
Neovasc Inc (US) (NASDAQ:NVCN) on August 09, 2016 announced financial results for the quarter ended June 30, 2016 (all figures in US dollars unless otherwise indicated)
Separate to the litigation with CardiAQ, on June 6, 2016, an alleged purchaser of Neovasc common stock filed a lawsuit, on behalf of a putative class of purchasers of Neovasc securities, against Neovasc in the United States District Court for the District of Massachusetts concerning alleged violations of the United States securities laws. The complaint filed in the lawsuit, which principally bases the plaintiff’s claims on the Company’s prior disclosures regarding the lawsuit filed by CardiAQ in the United States District Court for the District of Massachusetts, does not specify the amount of damages sought. Further, as of the present time, no class has been certified by the court. The Company and its officers have filed a motion to dismiss the complaint and intend to vigorously defend themselves in the litigation, and so the outcome of this matter is not currently determinable. Litigation is inherently uncertain. Therefore, until this matter has been resolved to its ultimate conclusion by the appropriate court, the Company cannot give any assurances as to the outcome.
Revenues for the three months ended June 30, 2016 were $1,710,932 compared to revenues of $2,972,382 for the same period in 2015, representing a decrease of 42%. The Company is focusing its business away from its traditional revenue streams towards development and commercialization of its own products, the Reducer and the Tiara. The Company started its sales of the Reducer in the first quarter of 2015 as it initiated its focused commercialization of the product in Europe.
Sales of the Reducer for the three months ended June 30, 2016 were $246,122, compared to $134,607 for the same period in 2015, representing an increase of 83%. The Reducer has seen steady quarter over quarter revenue growth since in launch in the first quarter of 2015. The success of the commercialization of the Reducer will be dependent on the amount of internal resources allocated to the product, obtaining appropriate reimbursement codes in various territories and correctly managing the referrals process.
Revenues from consulting services for the three months ended June 30, 2016 were $1,223,973, compared to $1,700,464 for the same period in 2015, representing a decrease of 28%. The Company anticipates that its consulting services revenue will decline in the long term as its consulting customers continue to transition to becoming contract manufacturing customers or cease being customers as they move manufacturing in house. Contract manufacturing revenues for the three months ended June 30, 2016 were $240,837, compared to $972,216 for the same period in 2015, representing a decrease of 75%. The decrease in revenue for the three months ended June 30, 2016 compared to the same period in 2015 is primarily due to temporary delay in shipping to a single customer that resulted in an increase in inventory during the period. The delay in shipping has been resolved and the Company believes it will clear the backlog and return sales to more appropriate levels in the third quarter and beyond.
Neovasc Inc (US) (NASDAQ:NVCN) holds the market capitalization of $53.76B along with 66.87M outstanding shares. The stock traded in the price range of $0.69 – $0.88 for the last trading session.
As of current trade, Neovasc Inc (US) (NASDAQ:NVCN) has shown weekly upbeat performance of 37.51%. Its six months performance indicated a bearish movement while its yearly performance reflected a negative trend of -87.29%. Year-to-date (YTD) performance of the stock illustrate downbeat trend of -83.33%. Shares of Neovasc Inc (US) (NASDAQ:NVCN) currently have an ABR of 2.00, derived from a total of 2 opinions. The company’s price sits 44.32% above from its 50-day moving average of $0.55 and -74.87% below from the stock’s 200-day moving average of $2.30. The company has Relative Strength Index (RSI 14) of 62.98 along with Average True Range (ATR 14) of 0.10. Its weekly and monthly volatility is 27.57%, 15.15% respectively.
Neovasc Inc (US) (NASDAQ:NVCN)’s price to book ratio for most recent quarter is 0.98.