Categories Health Care

ReWalk Robotics (RWLK) stock plunges to a record low

ReWalk Robotics Ltd. (NASDAQ: RWLK) stock plunged to a record low of $1.94 on Friday as the medical devices company has been struggling in achieving the desired results of product sales. Also, investors remained concerned about the future of the company after weak third-quarter results.

The company has incurred losses and negative cash flow from operations since inception, and this is likely to continue in the near term. ReWalk Robotics has funded its operations since inception primarily through the sale of certain of its equity securities and convertible notes in private placements, the sale of ordinary shares in public offerings and the incurrence of bank debt.

Image for representation. Courtesy: AbsolutVision on Unsplash

The wearable robots and exoskeletons continue to evolve. The medical sector has adopted exoskeleton technologies for rehabilitation therapy and geriatric support. However, the wearable robots and exoskeletons market is gaining traction in the defense and other industries.

Meanwhile, the demand from the rehabilitation robots market will be driven by the rising aging population and a growing number of stroke rendering people immobile. According to the International Federation of Robotics, the sales of assistance robots for the elderly and disabled communities will total around 37,500 units in 2016-2019 and is likely to increase substantially over the 2019-2024 period.

On Wednesday, Rewalk posted a narrower loss for the third quarter of 2019 helped by lower operating expenses. However, the top line dropped by 25% due to the lesser ReWalk Personal device sold. The results missed the analysts’ expectations. During the quarter, 17 units were placed, including 12 ReWalk Personal units and 5 ReStore units.

Read: Aurinia Pharmaceuticals Q3 earnings snapshot

As of September 30, 2019, the company had cash and cash equivalents of $20 million while accumulated deficit amounted to about $165 million. Also, further losses are anticipated in the development of its business.

The company plans to finance operating costs over the next 12 months with existing cash on hand, reducing operating spend, future issuances of equity and debt securities, or through a combination of the foregoing.

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