ReWalk Robotics Is Moving Forward with New Funding, Analysts Target and Company Guidance

ReWalk Robotics, Ltd. (NASDAQ: RWLK) develops, manufactures and markets wearable robotic exoskeletons for individuals with lower limb disabilities as a result of spinal cord injury or stroke. The Company’s mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies. Founded in 2001, ReWalk has headquarters in the United States, Israel, and Germany


On Nov. 20, 2018, ReWalk Robotics Announces Closing of $12.1 Million Public Offering. ReWalk will receive aggregate gross proceeds of approximately $12.1 million from the offering. ReWalk intends to use the net proceeds from the offering for (i) sales, marketing and reimbursement expenses related to market development activities and broadening third-party payor coverage, (ii) research and development costs related to developing its lightweight “soft suit” exoskeleton technology for various lower limb disabilities, including stroke and other indications affecting the ability to walk, and (iii) the repayment of certain outstanding indebtedness and other related payments to Kreos Capital V (Expert Fund) Limited ($3.6 million in total, including principal, prepayment costs and “end of loan” payments).


Before this, on Nov. 08, 2018, Rewalk announced its financial results for the three and nine months ended September 30, 2018.


“ReWalk has made significant progress to advance our R&D efforts for ReStore and support reimbursement. Positive developments with insurance providers in both the U.S. and Germany suggest we should see increased coverage for the ReWalk exoskeleton for SCI patients as we end 2018 and head into 2019. We have applied for CE mark clearance; and, with our ReStore study enrolment near completion, we are on track to file with the FDA by year-end 2018 or early 2019, positioning us to potentially have a stroke product on the market in the U.S. in Q3 2019. We continue to explore all financing options available to the Company in order to ensure that we are able to execute our strategy and advance our important products for the SCI and stroke communities,” stated Larry Jasinski, Chief Executive Officer of ReWalk.


Highlights of and subsequent to the third quarter include:

  • The recruitment requirements have been reached in the company’ multi-center trial of the Restore exo-suit, and the final participants will be completing the seven-session protocol in the coming days. – On track to file a submission with the Food and Drug Administration (FDA) by year-end or early 2019;
  • Applied for CE mark clearance for the ReStore;
  • Placed 500th ReWalk Personal and Rehabilitation system;
  • Total revenue for the third quarter of 2018 was $1.6 million compared to $1.7 million in the prior year quarter;
  • 22 units were placed during the third quarter of 2018;
  • Nine positive coverage decisions in Germany during the third quarter of 2018; and,
  • Gross margin improved to 47% during the third quarter of 2018.



Planned Steps for Growth Growing Current Business and Expanding to New Markets

ReWalk plans to grow the SCI, Rigid exoskeleton business through expanded coverage policies and develop new soft exosuit technologies through the Wyss partnership to address other lower limb disabilities and create a broad portfolio of solutions.

Upcoming milestones:

  • The key milestones for the next nine months are demonstrating sales growth from the German and VA policy accomplishments, establishing a U.S. commercial policy, completing the CE and FDA clearances, the launch of the ReStore stroke system and securing a distribution partner in China.
  • ReWalk Robotics continues to focus on margin improvement, managing its overall burn rate to the lowest possible level, seeking to reduce its debt and maintaining adequate capital balance. The management is focussing on maintaining the necessary financial flexibility to execute its strategic goals without cost and time overruns.


Analyst ratings and target price:

Per, Their average twelve-month price target is $2.00, suggesting that the stock has a possible upside of 900.00%. The high price target for RWLK is $3.00, and the low-price target for RWLK is $1.00. There are currently one sell rating and three buy ratings for the stock, resulting in a consensus rating of “Buy.”


Key highlights of the company:

  • Market leading global exoskeleton developer with two breakthrough device platforms
  • Rigid ReWalk exoskeleton for spinal cord injury market
  • FDA and CE mark clearance for both Personal and Rehabilitation use; a sixth-generation device
  • 500 systems placed, with the majority for home and community use; other systems used in rehab centers
  • Global commercial infrastructure with first mover advantage
  • ReStore soft-suit exoskeleton for stroke rehabilitation
  • First study underway in collaboration with Harvard University’s Wyss Institute
  • CE submission completed Q4 2018; FDA submission planned for early 2019; EU and US launch anticipated Q3 2019
  • The potential for other indications including multiple sclerosis and Parkinson’s disease
  • Innovation through a research collaboration agreement with Wyss Institute at Harvard
  • Proven insurance reimbursement success. Currently working with other groups in the US and Germany to secure broader coverage
  • Extensive relationship with Department of Veterans Affairs, the single largest network of care for spinal cord injury (SCI) patients in the United States


ReWalk Overview – Market leading global developer of robotic therapy and mobility assistance solutions

Financial Highlights:  Third Quarter 2018 Financial Results (In thousands, except share and per share amounts)

  • Total revenue was $1.6 million for the third quarter of 2018, compared to $1.8 million in the second quarter of 2018 and $1.7 million during the prior-year quarter. 22 ReWalk systems were placed during the third quarter of 2018, compared to 21 ReWalk systems placed in the prior quarter and 16 systems in the prior year period.  Eleven systems were placed in the U.S., nine were placed in the direct markets in Europe, and an additional two were placed in other markets.
  • Gross margin improved to 47% during the third quarter of 2018 compared to 41% in the third quarter of 2017, primarily attributable to sales mix and lower product costs.
  • Total operating expenses in the third quarter of 2018 were $4.9 million compared to $6.1 million in the prior year period.
  • Net loss was $4.5 million for the third quarter of 2018 compared to a net loss of $5.8 million in the third quarter of 2017.  Non-GAAP net loss for the third quarter was $3.8 million compared with a non-GAAP net loss of $4.8 million in the third quarter of 2017.
  • Liquidity: As of September 30, 2018, ReWalk had $5.2 million in cash on its balance sheet.


Guidance: The Company is updating its full-year 2018 revenue guidance and now expects revenues to reach between $7 million and $8 million.


Key risk factors and potential stock drivers:

  • Failure to identify changing trends and industry preference is an important factor which has a bearing on the company’ performance over the medium to longer term.
  • The company needs incremental capital to expand, achieve revenue targets. Therefore, management’ ability to improve RWLK’ cash flow profile as the company goes forward would continue to remain a critical stock sensitivity factor.
  • Company’ ability to demonstrate strong financial performance despite competitive pressures
  • Weaker than expected revenue growth and or profitability could also impinge the stock performance over the near to medium term.


Stock Performance




  • On Tuesday, Dec 11th, 2018, RWLK was at $0.21, with volume of 5 million shares exchanging hands. Market capitalization is $10.986 million. The current RSI is 15.96
  • In the past 52 weeks, shares of RWLK have traded as low as $0.1920 and as high as $1.35
  • At $0.21, shares of RWLK are trading below its 50-day moving average (MA) at $0.58 and below its 200-day moving average (MA) at $0.92
  • The present support and resistance levels for the stock are at $0.20 & $0.21 respectively.



Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.