Surgalign Holdings Inc. (SRGA) stock plummeted on Tuesday, March 16, 2021. SRGA lost 3.83% in the normal trading session and it further went down by 13.94% in the after-hours trading. SRGA stock announced its financial results for the fourth quarter and full-year 2020, yesterday March 16 which push the stock towards negativity.
Financial Highlights for the fourth quarter of 2020
- SRGA revenue was $26.2 million for the quarter ended December 31, 2020, compared to $31.6 million for the prior-year period.
- SRGA’s Gross profit for the fourth quarter of 2020 was $12.8 million.
- Surgalign Holdings spent $27.3 million in Marketing, general and administrative expenses in the reported quarter compared to $39.9 million same quarter in 2019.
- R&D expense for the fourth quarter of 2020 was $2.2 million compared to $4.4 million in the prior-year period.
- Adjusted EBITDA was a $7.7 million loss for the reported quarter compared to a $14.3 million loss in the prior-year period.
- SRGA suffered a Net loss of $118.1 million from continuing operations for the fourth quarter of 2020 compared to $199.6 million for the fourth quarter of 2019.
- SRGA had approximately $44 million in cash as of December 31, 2020.
Commercial Launch of ViBone® Moldable and the First Clinical Implantation
On January 12, 2021, SRGA announced the commercial launch and the completion of the first surgery of ViBone Moldable in the US. Dr. Adam Crowl completed the first implantation at OrthoVirgina in Midlothian, VA.ViBone Moldable is a next-generation viable cell bone matrix optimized to protect and preserve the health of native bone cells to potentially enhance new bone formation.
If we see in the past, SRGA is facing tough times, and over three years, the share price is down 53%. In the recent past, it dropped 34% in the last year. According to analyst predictions, SRGA needs at least 3 years more to turn things around and to make a profit.