The after-hours surge came as management pointed to hospital market share gains from a distracted competitor and rising bronchiectasis awareness following Insmed’s FDA-approved drug launch.
Electromed traded higher after hours on Tuesday as management highlighted hospital market share gains from a “distracted rival”, a strategy they credited with contributing to the company’s 11th straight quarter of year-over-year revenue and profit growth.
The stock closed up 2.3% at $20.66 on Tuesday and jumped another 12.6% after hours following its earnings release.
The maker of the SmartVest airway clearance system reported record fourth-quarter revenue of $17.4 million, up 17% from last year, as profit rose 21% to $2.2 million, or $0.25 a share.
On the earnings call, Electromed detailed growth drivers beyond the headline numbers. Executives said hospitals are proving to be a “gateway” channel as patients introduced to SmartVest in care settings are often discharged with prescriptions for home use.
CEO Jim Cunniff added that a major competitor with an “older product” is internally distracted, creating opportunities for market share growth.
The company also highlighted strong e-prescribe adoption, with 38% of orders now submitted digitally, resulting in a halving of fulfillment times. A new Salesforce-based CRM integrating sales and reimbursement teams has also been rolled out, earning positive early feedback.
Productivity gains continue, with sales representatives averaging $1.06 million each in annual revenue, up from $850,000 three years ago. Expansion to 61 territories is planned for FY26.
Electromed is also benefiting from greater awareness of bronchiectasis after Insmed’s new drug launch, which executives said is raising disease visibility without competing on airway clearance.
Earlier this month, the U.S. Food and Drug Administration (FDA) approved Insmed’s Brinsupri, an oral once-daily treatment, as the first and only FDA-approved therapy for non-cystic fibrosis bronchiectasis (NCFB).
The drug is cleared for use in adults and children aged 12 and older.
Electromed noted over 31,000 visits to its bronchiectasis campaign site and cited registry data showing 58% of patients meeting criteria for HFCWO therapy remain untreated, a gap it sees as a major market opportunity.
On Stocktwits, retail sentiment for Electromed was ‘bullish’ amid ‘high’ message volume.
Electromed’s stock has declined over 30% so far in 2025.
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