After spending years flying under the radar, 2020 has been the year in which ElectroCore (NASDAQ:ECOR) finally gained attention and respect. This is reflected in the price action of ECOR stock, which is stair-stepping its way to new levels.
How did this once-obscure medical device company get thrust into the spotlight so suddenly? The answer lies in the onset of the novel coronavirus. Like many other tiny companies this year, ElectroCore adapted to a profoundly changed medical landscape.
The trading community took notice of this and bid up the price of ECOR stock. This is encouraging, but investors should be aware of the risks involved. As with all medical-device companies, ElectroCore’s success depends on a number of events that aren’t guaranteed to work out as planned.
Still, some numbers were recently released that suggest a bright future for ElectroCore and its shareholders. Moreover, Covid-19 patients with a specific set of symptoms might find relief in the near future as ElectroCore works diligently to provide solutions.
A Closer Look at ECOR Stock
As I referenced earlier, the recent price action in ECOR stock represents a series of stair-steps. This began in June, when the bulls and bears were deadlocked and ECOR shares clung to the 80-cent level.
After a quick swing upwards in July, ECOR stock doubled in price to approximately $1.60. Next, the price action went sideways again for a little while.
Finally, ECOR stock popped to $2.20 and once again went sideways. Will this sideways-and-up pattern continue indefinitely? Not likely, though it is safe to say that the bulls are in charge for the time being.
A Great Update
As I reported in late July, ECOR shareholders rejoiced when the FDA granted emergency-use authorization for ElectroCore’s non-invasive vagus nerve stimulation technology known as gammaCore Sapphire CV. This treatment was geared towards “patients suffering from the coronavirus, or those that are suspected to be.”
To be more specific, this technology targets patients “experiencing exacerbation of asthma-related dyspnea and reduced airflow, and for whom approved drug therapies are not tolerated or provide insufficient symptom relief.”
The reception of this news accounts for one of the aforementioned ECOR share price spikes. On top of this, an update from ElectroCore specifies that this therapeutic treatment can be used either in a healthcare setting or at home.
This is a point that shouldn’t be overlooked. The ability for patients to access vagus nerve stimulation technology in a non-commercial setting is a major selling point. Not every patient is able to get to a clinic or hospital. Plus, some patients might not feel safe in those environments, even if they’re already positive for Covid-19.
Huge Highlights
ElectroCore is making headway in bringing its flagship medical technology to Covid-19 patients. But how is the company doing from a fiscal standpoint?
ElectroCore’s second-quarter financial report should answer that question handily. For one thing, the company’s quarterly earnings per share came to -13 cents. That might not sound impressive, but it’s a 68.29% over the result from the same quarter of the previous year. Besides, it’s a winner compared to the analyst consensus estimate of -21 cents per share.
As for ElectroCore’s second-quarter revenues, the reported figure was $753,000. That’s a year-over-year increase of 20.93%. It’s less than the analyst consensus estimate of $860,000, but it’s also above ElectroCore’s guidance range of $700,000 to $750,000.
By and large, those are great quarterly highlights and they suggest a solid fiscal position for ElectroCore. If the bulls can take this information and run with it, another ECOR stock stair-step or two might be in the offing.
The Bottom Line
It’s nice to see that ElectroCore is working hard to address a highly specific need among certain Covid-19 patients. With that, ECOR stock holders should be encouraged to know that the company is making progress, both financially and medically.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
