H.C. Wainwright initiated coverage of electroCore (NASDAQ:ECOR) with a “buy” rating and $2 price target. The stock closed at 65 cents on March 9.
electroCore is commercializing its lead product, gammaCore, the only FDA-approved non-invasive vagus nerve stimulation therapy for the acute treatment of migraine and episodic cluster headache and the prevention of cluster headache.
Analyst Swayampakula Ramakanth writes that the company has demonstrated the device’s ability to provide pain-relief in as early as 15 minutes, with a clean safety profile. “We believe gammaCore, by providing a portable, safe solution for fast pain relief has potential to reshape the headache market,” he added.
Mr. Ramakanth said that since early 2019, electroCore has revamped its commercial strategy, after some initial missteps, and established three new sales channels: the five-year Federal Supply Schedule (FSS) contract; the Innovation and Technology Payment Program in the UK; and a distribution agreement with closely-held Doctor’s Medical. Sales grew 162% to nearly $2.6-million in 2019 from $1-million in 2018.
For 2020, the company plans to transfer its focus from commercial payers to maximizing the existing high-volume sales channels under the FSS contract and has initiated cost-cutting measures. “We believe these changes could substantially enhance sales efficiency,” he added.
