Braxia Scientific Corp. (CSE:BRAX, OTC:BRAXF) has reported a significant increase in treatment volumes across its clinics, which rose by 26.2% in fiscal 2023 to 3,516, compared to 2,785 treatments in the previous year.
The company said its growth has been driven by increased demand across all five of its clinics. The recently opened Ottawa clinic experienced a remarkable 87.2% surge in treatment volumes, reaching 571 treatments compared to 305 treatments in the previous year. The Kitchener-Waterloo clinic, which opened in mid-2022, also saw rapid growth, with 214 treatments conducted in its first 8 months of operation.
Dr Roger McIntyre, CEO of Braxia Scientific, attributed the company's success to its reputation for providing innovative and life-saving treatments for mental health conditions.
In a statement, he commented: "We have seen record levels of referrals which we expect to continue and convert to treatments as we realign and refocus resources to our clinics."
Despite minimal marketing efforts, the company's clinic treatment volumes have continued to trend upward. Braxia said it plans to further increase volumes by intensifying direct marketing efforts and improving operational efficiency. Additional capacity is expected to be available from September 2023.
Dr McIntyre emphasized the company's plans to expand the flagship clinic in the Greater Toronto Area, as well as exploring opportunities in other major urban centers. He noted: "We are extremely well positioned to rapidly grow volumes and revenues."
In addition, Braxia Scientific announced a restructuring plan aimed at optimizing its cost structure and focusing on clinic expansion. This includes reducing management positions and implementing voluntary salary reductions, amounting to a total of $113,000 per month.
The company will also slow down the growth of its telemedicine business, KetaMD Inc, in response to potential regulatory changes affecting virtual at-home treatments. While reviewing recent policy changes proposed by the Drug Enforcement Administration (DEA), Braxia is taking steps to assess its longer-term US strategy for KetaMD.
Dr McIntyre reaffirmed the company's commitment to telemedicine, stating that it is actively seeking strategic partners to further develop the business.
Braxia said it continues to prioritize the growth of its clinics and the development of novel drugs and delivery methods to reduce the burden of brain-based disorders such as major depressive disorder.
Contact the author at jon.hopkins@proactiveinvestors.com