Inari Beats Consensus, Announces New CEO

In addition to reporting $5 million above its consensus for 2Q22, Inari CEO announced the Jan. 1, 2023, transition of CEO to Drew Hikes, the company’s current COO.

Katie Hobbins, Managing Editor

August 4, 2022

3 Min Read
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Image courtesy of NicoElNino / Alamy Stock Photo

Inari Medical yesterday reported its second quarter financial results showing the company beat consensus of $87.8 million by around $5 million.

The company, which targets patients affected by venous and other diseases, reported revenue of $92.7 million for 2Q22 compared to a 1Q22 revenue of $86.8 million and $63.5 million for 2Q21.

“Inari revenues for the second quarter of 2022 were $92.7 million, representing 7% sequential growth compared to $86.8 million for 1Q22, and up $29.3 million or 46% from $63.5 million for the same period of the prior year,” said Mitch Hill, chief financial officer at Inari, in its public facing Q2 financial results conference call. “Compared to 2Q21, our revenue growth is due to our continued efforts to open new customer accounts, focus on expanding our sales force and deepen our relationship with our existing customers. We've also been successful introducing multiple new products to expand our FlowTriever and ClotTriever product lines.”

The FlowTriever device is characterized as an over-the-wire system designed to remove blood clots through both mechanical and aspiration mechanisms of action. The ClotTriever device, which is also reported as over-the-wire, captures, and removes large clot burden from big vessels.

Inari saw gross profits of $82.4 million for 2Q22. This is in comparison to $58.6 million for the same period in 2021. Additionally, gross margin was 88.8% in 2Q22 vs. 92.4% in 2021. The company put this lower primary percentage down to its move to a larger production facility in 4Q21.

Operating expenses for 2Q22 raised to $91.7 million compared to $54.5 million in the same quarter of 2021 because of personnel-related expenses to increase headcount to fund the expansion of the company’s commercial, research, and development, clinical, and support organizations. There was a $10.2 million net loss seen in Q2, with a net loss per share of $0.19 on a weighted-average basic and diluted share count of $53.2 million. This is compared with a “net income of $4.1 million and a net income per share of $0.08 and $0.07 on a weighted-average basic share count of $49.7 million and diluted share count of $55.6 million, respectively,” in 2Q21.

In the financial report, the company also reaffirmed its guidance of $360 million to $370 million in revenue for the full year of 2022.

Along with its 2Q22 financial report, Bill Hoffman, president and CEO at Inari, took the time to announce that effective Jan. 1, 2023, Drew Hikes, who is currently COO, will take over the role and responsibilities of CEO.

“I have loved every second my time on this mission and with this team, and I have no professional plan beyond continued service on the Inari Medical Board of Directors. I do, however, have a lot of work to do on my own personal bucket list,” Hoffman said, during the conference call. “Drew is fully prepared for and capable of assuming the CEO role, and I am personally as excited for him as I am enthusiastic about Inari's future under his leadership.”

“Bill has been a friend and mentor to me personally, and I look forward to work closely with him both during this transition and beyond as he continues to serve on our Board,” Hikes said, in the call. “Let me just share how humbled I am to assume this role as we pursue our next phase of growth. I couldn't be more excited and confident about our future and the opportunity we have to impact the lives of comes more patients.”

About the Author(s)

Katie Hobbins

Managing Editor, MD+DI

Katie Hobbins is managing editor for MD+DI and joined the team in July 2022. She boasts multiple previous editorial roles in print and multimedia medical journalism, including dermatology, medical aesthetics, and pediatric medicine. She graduated from Cleveland State University in 2018 with a bachelor's degree in journalism and promotional communications. She enjoys yoga, hand embroidery, and anything DIY. You can reach her at [email protected].

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