Today, Progyny, Inc. (PGNY), a leading benefits management company specializing in fertility and family building benefits solutions in the United States, announced its financial results for the 3-month period ended March 31, 2020, as compared to the three-month period ended March 31, 2019. PGNY confirmed that they are “well-positioned” to successfully manage COVID-Related impacts as they realized a 72% increase in Q1 revenue of $81M, $12.1M in operating cash flow, while they added to PGNY’s “already strong balance sheet.”
“Due to the COVID-19 pandemic, our members’ access to care was meaningfully disrupted during the first quarter. We believe this disruption is temporary because fertility is commonly recognized as an essential medical service, including by the American Society for Reproductive Medicine, and the prevalence of infertility means people will still need assistance in order to pursue their dreams of having a family. The clinics in our network have implemented, or are currently implementing, safety protocols and other necessary measures in order to be up and running for their full range of treatments over the course of the next several weeks. Our members are ready to resume treatment and want to do so in a way that feels safe. – David Schlanger, Chief Executive Officer of Progyny
As the COVID-19 pandemic was unfolding, state and local governments implemented shelter-in-place orders. As a result, the company stated that its members’ access to care was impacted regionally. On March 17, 2020, the American Society for Reproductive Medicine (“ASRM”) issued guidelines recommending the suspension of new treatment cycles. As a result, the significant majority of our members were unable to complete diagnostics or initiate new treatment cycles, and our volumes declined precipitously as of that date. The ASRM updated its guidelines on April 24, 2020, which were then reaffirmed on May 11, 2020, providing fertility clinics with a path for the safe and gradual resumption of patient care. Additionally, many state and local governments have begun to ease stay-at-home orders, as well as allow for the resumption of non-emergent medical procedures.
“Over the last few weeks, we have begun to see a week-to-week acceleration in both the volume of patient appointments as well as the dispensing of fertility medications. This acceleration demonstrates that members are anxious to return to treatment and is evidence that the pause they have endured in their treatment hasn’t dimmed their desire to achieve their family-building goals. If access to care continues to improve as currently anticipated, we would expect our minimum second quarter results to be at least $45 million in revenue, $4.2 million in net loss, and $(1.3) million in Adjusted EBITDA1. Relative to other areas of the economy that have been significantly affected by COVID-19, we believe Progyny’s business will recover more quickly. We have been shielded from the worst impacts of the historic levels of unemployment due to the composition of our client base, and our 2.1 million members as of March 31st remain intact as of today.” – David Schlanger, Chief Executive Officer of Progyny
“Though our first-quarter results were negatively impacted by the disruption in providing care in March due to COVID-19, we are reporting solid revenue, net income and Adjusted EBITDA growth, as well as substantial operating and free cash flow, due to the strong start we had to the year. We are looking forward to our clinics building back up to their pre-COVID patient volumes,” stated Pete Anevski, Progyny’s President, Chief Financial and Operating Officer. Learn more.
Shares of PGNY are trading at $25.88/share up +26.31% today. The 52-week range is $13.29- $36.50.
In related news, recently The Morning Blend aired an interview on WTMJ-4 Milwaukee where Dr. Ellen Hayes, a Reproductive Endocrinologist and Infertility Specialist from Vios Fertility Institute, discussed information regarding their new research in health, pregnancy, and COVID19. Dr. Hayes also shares their research and a new offering of the FDA cleared infertility treatment called INVOcell that was developed by publicly-traded INVO Bioscience (INVO). The INVOcell technology, which continues to gain worldwide recognition and adoption, provides an in-vivo incubation solution that can help increase access and capacity to the large underserved global fertility market. The INVO Procedure is a revolutionary in vivo method of vaginal incubation that offers patients a more natural and intimate experience and more cost-effective. For the rest of 2020 Vios Fertility Institute is giving a special offer for InVoCell. The offer includes retrieval, monitoring, fresh embryo transfer for $6500, it normally costs $7200, which is still significantly less expensive than traditional lab-intensive IVF. Please watch the concise interview by clicking this link now!
The Global Fertility Services market size is expected to reach $36 billion with a CAGR of 8.5% by 2023, according to a recent report by Market Research Future (MRFR) highlighted in Forbes. With that being the case, over the last handful of years, we are seeing growing investor interest and a growing number of startups being funded in the fertility marketplace, which is still severely underserved due to prohibitive treatment costs, reasonable access to care & as couples are waiting to have children later in life. Currently, it is believed that only 1% to 2% of the estimated 150 million infertile couples worldwide are being treated. In addition, some of the emerging companies are already evolving into the public markets as we saw in the highly successful Fall 2019 IPO of Progyny, Inc. (NASDAQ: PGNY), the specialty fertility insurance benefits company which IPO at $13/share and has risen to as high as $36.50/share. Other notable startups & emerging companies. i.e. Glow and Ava (mobile & tracking apps), Modern Fertility and Adia (diagnostics) & Kindbody, a company focused on offering a full range of fertility services, are continuing to gain ground in the marketplace and garner attention.
Recently, INVO Bioscience (INVO) announced its financial results for the year ended December 31, 2019, which was highlighted by a 199% increase in their topline revenues in 2019. The Company further reported that the U.S. clinic locations which are trained to offer INVOcell have nearly tripled since their January 2019 agreement with Ferring Pharmaceutical & confirmed that each clinic location will vary in terms of implementation time and growth. Ferring has established a website, www.invocell.com, which provides information for patients and health care professionals, in addition to providing a tool to search for clinic locations that offer INVOcell. INVO also recently signed a joint venture agreement in Q1, 2020 with Medesole Healthcare and Trading Pvt Ltd to operate dedicated INVOcell fertility clinics in India. The joint venture has set an initial objective of opening three INVOcell clinics over the initial 12 months, with additional clinics planned in subsequent years. Learn more.