Rewalk Robotics Ltd (NASDAQ:RWLK) is a small cap player in the therapeutic device space that has been searching for a bottom after sliding lower over the past 3 years, (basically since its IPO in September of 2014). That said, RWLK has been showing some signs of a possible price base on the chart over the last few weeks and perked up to close last week, so we thought it might pay to dig deeper.
The big catalyst driving the action right now is the company’s announcement its Q2 financial results for the three-and six-month periods ended June 30, 2017. The highlights are interesting here: 146% YOY growth in Q2 revenue to $2 million and record 1H revenue of $4.5 million, 11 favorable commercial case-by-case insurance coverage decisions, 217 pending insurance claims in the U.S. and Germany, and the unveiling of its Restore soft-exosuit for stroke patients. Let’s take a broad view of the company itself.
Rewalk Robotics Ltd (NASDAQ:RWLK) bills itself as a medical device company that designs, develops, and commercializes exoskeletons for wheelchair-bound individuals with mobility impairments or other medical conditions.
RWLK offers ReWalk Personal for everyday use to paraplegic individuals at home and in their communities; and ReWalk Rehabilitation for exercise and therapy used in hospitals and rehabilitation centers in the United States and Europe. ReWalk Robotics Ltd. markets and sells its products directly to institutions and individuals, as well as through third-party distributors.
According to company materials, “ReWalk Robotics Ltd. develops, manufactures and markets wearable robotic exoskeletons for individuals with spinal cord injury. ReWalk’s mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies. Founded in 2001, ReWalk has headquarters in the U.S., Israel and Germany. For more information on the ReWalk systems, please visit www.rewalk.com.”
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As noted above, RWLK shares have been teasing us in recent action with some of the technical hallmarks of a basing pattern: Support has been holding, the Jan 2016 thru June 2017 down trend line has been broken to the bull side, the MACD histogram just flipped over the bull side, average volume has been rising, and the stock just closed above its 50-day simple moving average following the release of its Q2 results.
Given that RWLK posted another loss, the strength in the tape is notable and may be a signal of an exhaustion of sellers.
“This was another strong quarter for ReWalk as we advanced our key initiatives: securing insurance reimbursement coverage for the ReWalk personal device, expanding our global footprint and progressing our innovative ‘soft suit’ exoskeleton technology designed for individuals with stroke. We’ve submitted extensive data for review by a large commercial insurer in the U.S. and await a decision. We believe that a positive coverage decision would be an important catalyst for our business and the industry. It would also reflect the growing consensus among multiple courts and insurers who have determined, on a case by case basis, that our technology is not experimental and offers health benefits to its users,” stated Larry Jasinski, Chief Executive Officer.
“At the same time, we are excited to have introduced our Restore lightweight ‘soft suit’ design for stroke patients. We plan to begin clinical studies and pursue regulatory approvals so that we can commercialize the Restore in 2018, in order to broaden the reach of our technology to the millions of patients who can benefit from access to the device,” he added.
Now commanding a market cap of $24.18M, RWLK has a significant war chest ($17.1M) of cash on the books, which compares with about $8.4M in total current liabilities. One should also note that debt has been growing over recent quarters. RWLK is pulling in trailing 12-month revenues of $6.3M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 21.3%. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $RWLK stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $RWLK, either long or short, and we have not been compensated for this article.