Zacks Small Cap Research – MYO: Myomo is Driving Advancements in Wearable Technology – Technologist

NYSE:MYO

Myomo, Inc. (NYSE:MYO) specializes in wearable medical robotics, focusing on improving arm and hand function for people with neurological disorders or upper-limb paralysis. The company developed and commercialized the MyoPro product line, powered upper-limb orthoses designed to support and restore function to weakened or paralyzed arms. MyoPro devices are used by patients with conditions including stroke, injury, ALS, and others.

MyoPro stands out as the only device in the U.S. market that uses non-invasive sensors on the arm to detect and interpret a patient’s EMG signals. This enables individuals to perform daily activities like feeding themselves, manipulating objects, and doing household chores. MyoPro helps patients reintegrate into the workforce, gain independence, and lower overall cost of care. Headquartered in Boston, Massachusetts, Myomo operates across the United States with a team of sales and clinical professionals, supported by international representatives.

MyoPro Brace

The MyoPro is an arm and hand orthosis designed to assist individuals in restoring function to paralyzed or weakened upper extremities, enabling them to perform daily activities that would otherwise be challenging. Developed in collaboration with MIT and Harvard Medical School, MyoPro operates by detecting faint nerve signals (myoelectric signals) on the skin’s surface, without any invasive implants. It then activates small motors to move the limb according to the user’s intentions, allowing complete control over hand, wrist, elbow, and arm movements.

While orthotic products can support weak legs, and other brace products exist for individuals who have lost limbs, the MyoPro stands out as the only wearable myoelectric device on the market tailored to restoring function for those with intact but non-functional arms and hands. The MyoPro serves as a compensatory device, enhancing the user’s ability to perform functional tasks with the affected limb by amplifying weak muscle signals.

The intended use of the MyoPro is to increase the user’s ability to perform daily tasks with the affected limb by voluntarily activating movement of the orthotic device using their remaining electromyography (EMG) muscle signal. It is indicated for use by adolescents (ages 12+), adults (ages 18+), and veterans diagnosed with long-term muscle weakness or partial paralysis. Unlike electrical stimulation, which externally stimulates muscles, MyoPro utilizes passive sensors on the skin’s surface to detect electrical signals within a muscle (electromyography).

MyoPro2+

The MyoPro2+ introduces several enhancements, including an interchangeable battery for extended use, an improved user interface, redesigned sensors and electronics for better performance and reliability, and an upgraded harness for durability and comfort.

MYOVERSE

The Myomo MYOVERSE is a downloadable mobile application designed to facilitate communication among patients, providers, and authorized medical professionals. It serves as a platform for accessing educational and training resources pertaining to the MyoPro^® family of devices. Additionally, the application offers gamification features for user engagement and interaction.

MyoGames is a virtual training platform aimed at making rehabilitation with MyoPro devices more engaging. Users play interactive games on their Myomo-equipped laptops, where arm or hand movements correspond to game actions. MyoGames tracks progress in real-time and offers benefits such as enjoyable activities for users of all ages, flexible training at home, and potential neurological rehabilitation benefits. Currently, MyoGames is exclusively available for new MyoCare customers, with the Basketball game pre-loaded on every Myomo laptop at no extra cost.

Q1 Financial Results

Myomo reported first quarter 2024 financial results on May 8th. Total revenue hit $3.8 million, up 9% from Q1 2023, with the number of revenue units rising by 14% to 91 units. MyoPro^® orders and insurance authorizations increased by 48%, totaling 180 units, while the backlog grew by 56% to 275 units, including 83 Medicare Part B patients. The MyoPro patient pipeline expanded substantially, growing by 30% to 1,112 patients. The gross margin for Q1 2024 was 61.2%, down from 67.0% in Q1 2023, primarily due to lower average selling prices and increased costs. Operating expenses rose by 24%, driven by higher research and development spending and elevated advertising costs. As of March 31, 2024, the company held $11.0 million in cash, cash equivalents, and short-term investments, with $3.2 million used in operating activities for Q1 2024. Looking ahead, Myomo anticipates generating over $5.0 million in product revenue in the second quarter, and between $28 million to $30 million in 2024.

Summary

Myomo, Inc. stands out as a leader in the wearable medical robotics sector, with a distinct focus on improving arm and hand functionality for individuals grappling with neurological disorders or upper-limb paralysis. The company’s flagship product line, MyoPro, utilizes non-invasive sensors, which interpret electromyography (EMG) signals to facilitate daily tasks. Recent advancements, such as the introduction of MyoPro 2+ and the MYOVERSE application, underscore the company’s dedication to innovation and user engagement. Looking ahead, the company’s management team maintains an optimistic outlook on future growth and revenue projections, reaffirming its pivotal role in the field of medical robotics and rehabilitation technology.

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