
Silk Road Medical Pre-Announces Significant Revenue Miss; CEO Retirement
Silk Road Medical, a manufacturer of products for carotid artery stenosis treatment, recently announced preliminary revenue figures for the third quarter of 2023. Preliminary, unaudited reports indicate that Silk Road Medical is set to achieve approximately $44.4 million in revenue for the third quarter of 2023 compared to consensus expectations of $46.3 million. The revenue expectation represents 19% year-over-year growth but is down sequentially and represents a significant deacceleration in growth.
Silk Road Medical also updated its revenue guidance for 2023 to a range between $170 million and $174 million from the previous range of $180 to $184 million. The new revenue projection reflects 23% to 26% growth compared to its prior year’s revenue. The guidance implies a 4Q23 revenue range of $40.2 million to $44.2 million which implies another sequential decline in revenue.
In addition to the disappointing preannouncement, the company revealed that its CEO, Erica Rogers, intends to retire from the company following a succession process. To facilitate a seamless transition, the company has engaged Spencer Stuart, an executive search firm. Until her successor is selected, Ms. Rogers will continue to serve as the President and CEO of the company.
Following the announcements, the company’s stock sold off significantly.
Silk Road Medical is known for its products for Transcarotid Artery Revascularization (TCAR), which is an medical procedure to improve blood flow through the carotid arteries using stents and is designed to provide neuroprotection during carotid artery interventions. TCAR offers a less invasive approach compared to traditional carotid endarterectomy, focusing on minimizing the risk of surgery-related strokes and improving patient outcomes. TCAR allows vascular surgeons to gain direct access to the carotid artery, providing a clear pathway for intervention. Additionally, during angioplasty and stent placement using the ENROUTE Transcarotid Stent, blood flow is reversed away from the brain, reducing the potential for micro and macro emboli that can lead to strokes. TCAR procedures tend to be more efficient, taking less time to perform, and are also associated with significantly fewer complications like myocardial infarction and cranial nerve injury. Studies have shown that TCAR patients are 26% less likely to require extended hospitalization, contributing to quicker recoveries and healthcare cost savings.