NeuroPace Announces Refocusing of Product Portfolio

Core Viewpoint - NeuroPace, Inc. is strategically refocusing on its RNS System product line by terminating its distribution relationship for SEEG products, with the wind-down process starting in Q4 2025 and continuing into Q1 2026 [1][2][3] Financial Guidance - The company is maintaining its 2025 revenue guidance despite the upcoming changes, with expectations of achieving cash flow breakeven by the end of 2027 and a long-term revenue growth rate of over 20% CAGR [3][6] Product Strategy - The focus will shift towards expanding the RNS System's market presence, including initiatives like Project CARE and new indications for drug-resistant idiopathic generalized epilepsy and pediatric focal epilepsy [2][6] - The RNS System has a significantly higher gross margin of over 78% compared to the 50% margin for SEEG products, indicating a potential for improved profitability [6] Market Positioning - NeuroPace aims to establish the RNS System as the standard of care for drug-resistant epilepsy patients, leveraging its unique capabilities to drive long-term growth [3][5] - The company is confident in its ability to support customers during the transition away from SEEG products, as the SEEG market has comparable offerings from various competitors [6]