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Axonics to Up Advertising After Revenue Grows 62%

Axonics Inc. will soon make its television debut in an ad campaign about its therapies to treat bowel and urinary incontinence, company executives say.

According to Axonics CEO Raymond Cohen, the Irvine-based device maker (Nasdaq: AXNX) is in the “final stages” of launching a national, direct-to-consumer advertising campaign to “broaden awareness” of its therapies.

“We remain confident that our commitment to innovation, quality and providing physicians and patients strong support will continue to drive market expansion and advance Axonics on its path to market leadership,” he said in a statement.

Last year, the company almost tripled its advertising expenses $7.8 million, according to its annual report.

The announcement comes as Axonics delivered fourth-quarter and full-year results that topped Wall Street’s estimates.

Revenue for the fourth quarter of 2021 was $53.1 million, up 53% from the prior-year period, while full-year revenue for 2021 was $180.3 million, a 62% increase from the previous year.

Following the earnings report, the company’s shares climbed about 8% to where it sits at press time: nearly $55 per share for a market cap of $2.6 billion.

“We are proud of our fourth quarter and fiscal year 2021 results considering the disruption Covid-19 has had on elective procedures in the U.S. and around the world,” Cohen said.

Axonics placed first in the Business Journal’s list of Fastest-Growing Midsized Public Companies in 2021.

Addressing 127M Adults

Axonics, formed in 2013, develops technologies to treat pelvic floor disorders, or bowel and urinary continence, through a type of minimally invasive therapy called sacral neuromodulation.

The company reports some 87 million adults in the U.S. and Europe suffer from overactive bladders, while an estimated 40 million suffer from fecal incontinence.

It commercialized in 2019 after its main product, the SNM System, received approval from the FDA.

The SNM System is a small, rechargeable implant that sends electrical signals to the nervous system to help regulate the bladder and bowels; it’s designed to last at least 15 years in the human body.

Its competitors include global medtech firm Medtronic PLC (NYSE: MDT), which in 2020 scored a regulatory win of its own with its InterStim Micro device, the smallest sacral neuromodulation device on the market.

Last February, Axonics expanded into the female stress urinary incontinence (SUI) space with the acquisition of UK-based Contura and its lead product Bulkamid, a urethral bulking agent.

More to Come

Cohen also said a newer version of Axonics’ SNM system that doesn’t require recharging will soon be available. An application to the FDA has already been sent.

“We expect to begin shipping our long-lived, recharge-free SNM system in early second quarter following FDA approval,” he said. “We believe this new device will set a new standard for what is possible in the SNM category.”

The new device should bolster the company’s outlook for fiscal 2022, which is expected to grow 30% year-over-year to $234 million. 

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Audrey Kemp
Audrey Kemp
Audrey Kemp is a staff reporter and occasional photojournalist for the Orange County Business Journal. Her beats include — but are not limited to — healthcare, startups, and education. While pursuing her bachelors in literary journalism at UC Irvine, she interned for New York-based magazine Narratively Inc., wrote for Costa Mesa-based lifestyle magazine Locale, and covered the underground music scene for two SoCal-based music publications. She is an unwavering defendant of the emdash and the Oxford comma.
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