
CLS predicts continued growth in 2025–2026
CLS presents its expectations for the next two years based on the strategic changes implemented in 2024. The company has shifted its focus to commercial partnerships and the neurosurgery segment while implementing extensive cost-saving measures. These initiatives are expected to strengthen the company’s financial performance and create a stable foundation for continued growth.
In 2024, Clinical Laserthermia Systems (CLS) launched the full-scale market introduction of its laser ablation system for the neurosurgery segment, ClearPoint Prism, which increased revenues for the company. Net sales grew by 274 per cent during the first nine months of 2024 compared to the same period in 2023, driven by increased adoption of the ClearPoint Prism system and rising demand for sterile disposable products.
Cost-saving program
Meanwhile, operating expenses decreased by 18 per cent due to a cost-saving program and a more focused business approach. This resulted in a leaner organisation and the closure of the prostate and urology business. The company will no longer operate as a direct-to-clinic sales unit but will instead expand its partnership-driven “razor/razorblade” business model.
During 2024, CLS allocated most of its resources to accelerating the commercialisation of ClearPoint Prism through its partner, ClearPoint Neuro. This partnership has been instrumental in driving the adoption of ClearPoint Prism, resulting in installations across the U.S., giving patients access to minimally invasive LITT (laser interstitial thermal therapy) treatments with the Prism system.
Financial goals
Looking ahead, CLS aims for annual double-digit revenue growth in 2025 and 2026, with an increase in the addressable market by over 40 per cent. The company also aims to reduce operating expenses by at least 30 per cent in 2025 compared to 2024. This is expected to drive the gross margin to 60 per cent and position CLS for positive cash flow by the end of 2026.
Dan Mogren, CEO of CLS, summarized the company’s outlook as follows:
– The next two years mark a pivotal phase for CLS. By aligning our resources with our new strategic priorities, together with our partners, we are building a strong foundation for profitability and sustainable growth. Our joint focus on meeting customer expectations, operational excellence, and market expansion ensures we remain at the forefront of delivering transformative therapeutic solutions.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.