ReWalk Robotics reported decreases in revenue and losses in the first quarter, driven in part by COVID-related processing limitations.
The Marlborough-based company, which develops, manufactures, and markets wearable robotic exoskeletons for people with lower limb disabilities resulting from spinal cord injury or stroke, reported revenue of about $900,000 in the first three months of the year, down from $1.3 million the year before. Net loss for the quarter was $4.4 million, a drop from a $3.1-million loss in the first quarter of 2021.
Sales of ReWalk Personal 6.0 were down in the first quarter, which contributed to the drop in revenue, and to a gross margin of 30%, compared to 54% in 2021. Operating expenses increased to $4.6 million, largely due to employee-related expenses and increased consulting for reimbursement, product development, and professional services.
“While our quarterly sales were somewhat disappointing – in part due to COVID-related processing limitations that slowed the case-by-case process with many groups that have supported placements – we continue to work hard to build out established systems to improve predictability and consistency of payment,” CEO Larry Jasinski said in a press release.
Jasinski said the company is on the June 8 agenda of the Biannual Healthcare Common Procedure Coding System, a Centers for Medicare and Medicaid Services meeting that includes benefit category determination for the first time under new regulations for products such as theirs.
“We are also laser-focused on continued interactions with the Veterans Administration for earlier referrals after injury and enhancement of training resources through the community-based clinics,” he said.
