Corindus closes $45m offering, sees shares slide on Q4, FY2016 earnings miss

Corindus Vascular Robotics (NYSE:CVRS) this week announced the closing of a $45 million offering and 4th quarter and fiscal year 2016 earnings which just missed expectations on Wall Street.

In the offering, Waltham, Mass.-based Corindus floated an aggregate of 68.1 million shares of common stock at 66¢ per share, with proceeds intended to support general corporate purposes as well as commercialization of its next-gen CorPath GRX system.

As part of the funding round, Dr. Louis Cannon of the Cardiac & Vascular Research Center of Northern Michigan was appointed to the company’s board of directors.

“Corindus will play a major transformational role in cardiac and vascular intervention. This technology reduces procedural variability, physician fatigue and radiation exposure, especially in lengthy procedures. Robotics also has the future potential to treat strokes and heart attacks tele-robotically. If we can treat patients tele-robotically from hospital centers of excellence, we can impact humanity in a truly meaningful way, especially in geographic areas that lack the required physician expertise,” Dr. Cannon said in a press release.

Corindus saw shares slump today after it released Q4 and FY2016 earnings which missed expectations on Wall Street.

The company posted losses of $9.8 million, or 8¢ per share, on sales of $538,000 for the 3 months ended Dec. 31, with losses growing 35.4% while overall sales shrunk 35.3% compared with its prior 4th quarter.

For the full year, Corindus posted losses of $33.1 million, or 28¢ per share, on sales of $2.8 million. Bottom-line losses grew 15% while sales grew 4.1% compared with the previous fiscal year.

For both the quarter and the year, the company missed its losses-per-share expectations by 1¢.

“Corindus is better positioned today than ever in the company’s history, aligning with the evolution in the cardiology sector which is poised to more fully incorporate robotics into practice than ever before. The first commercial cases with the CorPath GRX at prestigious US hospitals, the recent receipt of several multi-system orders, and our recent expansion into Japan demonstrate meaningful continued progress toward our strategic and commercial objectives. Our leadership team is solidly in place, and we are benefiting from the deep and broad experience of our collective team. With the recent financing which brought approximately $45 million in aggregate gross proceeds to the company, we are excited to accelerate our already strong positive momentum into 2017 and deliver on our expectation to implement at least 25 new cardiovascular programs and reach $13 million to $15 million in revenue for the year,” prez & CEO Mark Toland said in a prepared statement.

Shares have dropped 6% to trade at $1.30 as of 12:56 p.m. EST.

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