Neovasc misses the Street with Q1 earnings, analysts remain positive

Neovasc (NSDQ:NVCN) today released 1st quarter 2016 earnings that fell short of the Street’s expectations in revenue and losses per share, though analysts remained optimistic about Tiara trial enrollment numbers.

The company reported losses of $7.6 million, or 16¢ per share, on sales of $2 million for the 3 months ended March 31.

That amounts to a slim 1.1% gain in losses on the bottom end while sales shrunk 12.9% compared with the same period last year, according to Neovasc’s SEC filing.

Losses per share were off Wall Street analysts expectations by 4¢ and revenue was off by a significant $1.3 million, with analysts expecting Neovasc to bring in $3.3 million.

But there’s still reason to be optimistic about Neovasc’s future, according to Leerink Partner analyst Danielle Antalffy, as the company grew the number of patients enrolled in the trial of its Tiara implant by 3 since the last quarter.

Neovasc also has a new valve size, 40 mm, coming for the valve currently in clinical trials, which Antalffy said should accelerate enrollment in the study. Antalffy said the company stated a rate of 3 implants a month as ‘likely reasonable’, and hopes to complete enrollment by the end of the year.

The company is also working to initiate a CE Mark study for approval in the European Union, with an early 2016 start and late 2017 or early 2018 approval possible, Antalffy said.

“NVCN also noted that conversations with European regulators are ongoing regarding initiation of a CE Mark trial, which the company expecting to begin by early-2017. As a reminder we peg the global transcatheter mitral valve replacement market opportunity at approximately $9B, with likely NVCN potentially one of the first, if not the first, to market,” Antalffy wrote in a letter to investors.

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