Surmodics, Inc. (SRDX) reported adjusted earnings per share of 6 cents in the third quarter of fiscal 2025, beating the Zacks Consensus Estimate of a 21-cent loss and reversing a year-ago loss of 27 cents per share. While total revenues declined 2.6% year over year to $29.6 million, the company exceeded expectations in IVD sales, which grew 5.7% to $7.4 million, and in research, development, and other revenues, which rose 35.7% to $3.1 million. The Medical Device segment saw a 4.9% year-over-year decline in sales to $22.2 million, while royalties and license fees dropped 7.7% to $9.7 million. Gross margin contracted to 70.9% from 73.1%, and selling, general & administrative expenses increased 6.8% to $17.8 million. Despite a weaker top line, the company revised its fiscal 2025 revenue outlook to $116.5 million–$118.5 million, up from prior expectations, and lowered its adjusted loss per share forecast to 35–20 cents, narrowing from 62–42 cents. Positive developments include the commercial launch of the Pounce XL Thrombectomy System in April and the FDA 510(k) clearance for the Preside hydrophilic coating, which enabled the first customer to begin early commercialization. The stock gained nearly 8.5% in after-hours trading. The article also references performance comparisons with other medical device companies such as GE HealthCare, West Pharmaceutical Services, and Boston Scientific, which reported stronger-than-expected earnings.

The global erectile dysfunction devices market is expected to grow at a compound annual growth rate (CAGR) of approximately 8% by 2032, reaching a market size of USD 3 billion. The expansion is driven by rising incidences of erectile dysfunction linked to chronic conditions such as diabetes, cardiovascular disease, hypertension, and obesity, as well as an aging male population. North America led the market in 2024 due to high prevalence rates and increasing awareness. Key players include Comphya SA, Coloplast Group, Boston Scientific Corporation, and others. Innovations such as Comphya's CaverSTIM implantable neuromodulator, which received FDA IDE approval in January 2025, are advancing treatment options. However, high device costs and complexity remain significant barriers to adoption, especially in developing regions.

The global neuromodulation devices market was valued at USD 5.71 billion in 2023 and is projected to grow at a CAGR of 8.95% from 2024 to 2030, reaching USD 9.56 billion. Growth is driven by the rising prevalence of neurological disorders and chronic pain, particularly among the aging population. Key market players include Medtronic, Abbott Laboratories, Boston Scientific Corporation, and others. Notable developments include Sooma Medical receiving FDA IDE approval for its tDCS device in March 2025, Boston Scientific's USD 3.4 billion acquisition of Axonics in January 2024, and various FDA approvals for devices such as Bioventus' StimRouter® system, Helius Medical's portable stimulator, and NeuroPace's RNS® System. North America is expected to dominate the market due to high patient numbers with neurological conditions and active product development.

SetPoint Medical has raised $140 million in funding to commercialize its SetPoint System, a neuromodulation device designed to treat adults with moderate to severe rheumatoid arthritis who have not responded to or cannot tolerate other therapies. Investors include Abbott, Boston Scientific, and Northwell Health.

Exact Sciences Corporation (EXAS) reported stronger-than-expected second-quarter 2025 earnings and revenue, with EPS of 22 cents versus a Zacks consensus estimate of a 2-cent loss, and consolidated revenues of $811.1 million, up 16% year-over-year. Screening revenues increased 18% to $811 million, driven by Cologuard rescreens and care gap programs, while Precision Oncology revenues rose 9% to $183 million due to international adoption of Oncotype DX. The company recognized $7.5 million in sublicensing revenue from TwinStrand's technology. Despite the revenue and earnings beat, shares fell 8% to $43.16 after the earnings announcement. The company updated its full-year 2025 revenue guidance to $3.130–$3.170 billion, with Screening revenues expected at $2.440–$2.470 billion and Precision Oncology at $690–$700 million. Adjusted EBITDA guidance was raised to $455–$475 million. EXAS also expanded payer agreements, launched a blood-based colorectal cancer test with Freenome, launched Oncodetect for molecular residual disease testing, secured Medicare coverage, and introduced a multiyear productivity plan to achieve $150 million in annual savings by 2026. The company reiterated its long-term targets of 15% compounded revenue growth and over 20% adjusted EBITDA margins. However, gross margin contracted to 69.4% due to rising costs of revenues. The stock currently holds a Zacks Rank #3 (Hold), with comparisons made to Medpace Holdings (Zacks Rank #1), GeneDx Holdings (Zacks Rank #2), and Boston Scientific (Zacks Rank #2).