NeuroPace, Inc. (NPCE)
NeuroPace, Inc. is a medical device company specializing in the RNS System, a brain-responsive neuromodulation system for treating refractory focal epilepsy. The RNS system delivers personalized, real-time treatment at the seizure source while recording continuous brain activity data.
Company Overview
NeuroPace offers a groundbreaking solution for refractory focal epilepsy with its RNS System, a personalized, brain-responsive neuromodulation device. Poised for growth in the neurological disorder treatment market, NeuroPace presents a unique investment opportunity in medical technology innovation.
Investment Thesis
NeuroPace presents a compelling investment opportunity due to its innovative RNS System and its potential to revolutionize the treatment of refractory focal epilepsy. The company's strong gross margin of 76.8% indicates a premium product with pricing power. While the company currently has a negative P/E ratio of -21.65 and a profit margin of -25.3%, the growth potential in the underserved epilepsy market is substantial. Key value drivers include increasing adoption of the RNS System by epileptologists and neurosurgeons, expanding insurance coverage, and positive clinical outcomes demonstrating the system's efficacy. Upcoming catalysts include continued publication of clinical data supporting the RNS System and expansion into new indications. The company's focus on personalized neuromodulation positions it favorably in the evolving landscape of neurological disorder treatment.
Key Highlights
- RNS System: A unique brain-responsive neuromodulation system for treating medically refractory focal epilepsy.
- Gross Margin: Strong gross margin of 76.8% indicates pricing power and efficient operations.
- Market Opportunity: Addresses a significant unmet need in the treatment of refractory focal epilepsy.
- Data-Driven Therapy: RNS System records continuous brain activity data, enabling personalized treatment adjustments.
- Remote Monitoring: Clinicians can remotely monitor patients, improving convenience and care management.
Competitors
Strengths
- Innovative RNS System addresses an unmet need in epilepsy treatment.
- Personalized, data-driven therapy improves patient outcomes.
- Strong gross margin indicates pricing power.
- FDA approved device.
Weaknesses
- Limited market penetration due to high cost and complexity.
- Negative profitability and reliance on external funding.
- Competition from established pharmaceutical companies and other neuromodulation devices.
- High beta of 1.86 indicates high volatility.
Catalysts
- Upcoming: Publication of new clinical data supporting the RNS System's efficacy.
- Ongoing: Expansion of insurance coverage for the RNS System.
- Ongoing: Increasing adoption of the RNS System by epileptologists and neurosurgeons.
- Upcoming: Potential FDA approval for new indications.
- Ongoing: Strategic partnerships with leading epilepsy centers.
Risks
- Potential: Regulatory setbacks and delays in approvals.
- Ongoing: Competition from established pharmaceutical companies and other neuromodulation devices.
- Potential: Product liability claims and recalls.
- Ongoing: Dependence on a single product (RNS System).
- Potential: Economic downturn affecting hospital budgets and patient access to treatment.
Growth Opportunities
- Expanding Indications: NeuroPace has the opportunity to expand the use of its RNS System beyond refractory focal epilepsy to other neurological disorders, such as Parkinson's disease and essential tremor. The market for neuromodulation therapies in these areas is substantial, offering significant growth potential. This expansion would require additional clinical trials and regulatory approvals, but could significantly increase the company's addressable market.
- Geographic Expansion: Currently, NeuroPace primarily operates in the United States. Expanding into international markets, such as Europe and Asia, represents a significant growth opportunity. These markets have a large population of epilepsy patients and increasing adoption of advanced medical technologies. International expansion would require navigating different regulatory landscapes and establishing distribution networks.
- Technological Advancements: Continued innovation in neuromodulation technology can drive future growth. Developing smaller, more efficient, and more personalized RNS Systems can improve patient outcomes and expand the system's applicability. Investing in research and development to enhance the RNS System's capabilities is crucial for maintaining a competitive edge.
- Data Analytics and AI: Leveraging the continuous brain activity data recorded by the RNS System to develop advanced data analytics and artificial intelligence (AI) algorithms can improve treatment personalization and optimize patient outcomes. AI-powered insights can help clinicians better understand seizure patterns and adjust stimulation parameters for maximum efficacy. This data-driven approach can differentiate NeuroPace from its competitors.
- Strategic Partnerships: Forming strategic partnerships with hospitals, research institutions, and pharmaceutical companies can accelerate the adoption of the RNS System and expand its reach. Collaborating with leading epilepsy centers can increase awareness and generate clinical data supporting the system's efficacy. Partnering with pharmaceutical companies can explore combination therapies and develop new treatment protocols.
Opportunities
- Expanding indications to other neurological disorders.
- Geographic expansion into international markets.
- Leveraging data analytics and AI to improve treatment personalization.
- Strategic partnerships with hospitals and research institutions.
Threats
- Regulatory changes and reimbursement challenges.
- Technological advancements by competitors.
- Product liability risks associated with medical devices.
- Economic downturn affecting hospital budgets.
Competitive Advantages
- Proprietary Technology: The RNS System is a unique and patented technology.
- Clinical Data: Extensive clinical data supports the safety and efficacy of the RNS System.
- Regulatory Approvals: FDA approval provides a significant barrier to entry.
- Established Relationships: Strong relationships with key opinion leaders and epilepsy centers.
About
NeuroPace, Inc., founded in 1997 and headquartered in Mountain View, California, is a medical device company focused on developing and commercializing innovative therapies for neurological disorders. The company's flagship product is the RNS System, a first-of-its-kind brain-responsive neuromodulation system designed to treat medically refractory focal epilepsy. This system delivers personalized, real-time treatment by monitoring brain activity and responding with targeted electrical stimulation at the seizure source. The RNS System also continuously records brain activity data, enabling clinicians to remotely monitor patients and optimize treatment. NeuroPace sells its RNS System to hospital facilities, primarily for initial implant procedures and subsequent replacement procedures. The company's technology represents a significant advancement in epilepsy management, offering a potential alternative for patients who have not responded to traditional treatments. NeuroPace is dedicated to improving the lives of individuals suffering from neurological disorders through innovative and personalized medical solutions.
What They Do
- Develops and sells the RNS System, a brain-responsive neuromodulation system.
- Treats medically refractory focal epilepsy with personalized, real-time treatment.
- Delivers targeted electrical stimulation at the seizure source.
- Records continuous brain activity data for monitoring and analysis.
- Enables clinicians to monitor patients remotely.
- Sells products to hospital facilities for implant and replacement procedures.
Business Model
- Sells the RNS System to hospitals and epilepsy centers.
- Generates revenue from initial implant procedures.
- Receives revenue from replacement procedures as the device has a lifespan.
- Potentially generates revenue from data analytics and AI-powered insights in the future.
Industry Context
NeuroPace operates within the medical device industry, specifically targeting the neurological disorder treatment market. The epilepsy treatment market is characterized by a significant unmet need for patients with refractory focal epilepsy who do not respond to traditional medications. The market is driven by technological advancements in neuromodulation and increasing awareness of personalized medicine. NeuroPace's RNS System competes with traditional anti-epileptic drugs and other neuromodulation devices. Competitors include companies developing alternative therapies for epilepsy and other neurological disorders. The industry is subject to regulatory oversight and requires rigorous clinical trials to demonstrate safety and efficacy.
Key Customers
- Hospitals and epilepsy centers.
- Epileptologists and neurosurgeons.
- Patients with medically refractory focal epilepsy.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $27M | -$3M | $-0.11 |
| Q2 2025 | $24M | -$9M | $-0.26 |
| Q1 2025 | $23M | -$7M | $-0.21 |
| Q4 2024 | $21M | -$5M | $-0.18 |
Source: Company filings
Chart & Info
Price Chart
NeuroPace, Inc. (NPCE) stock price: $15.86 (+0.69, +4.55%)
Why Bull
- •NeuroPace's focus on responsive neuromodulation for epilepsy is gaining traction, with increasing awareness among neurologists and patients.
- •Recent insider buying activity suggests confidence in the company's long-term prospects and strategic direction.
- •The community is buzzing about NeuroPace's potential to disrupt traditional epilepsy management approaches.
- •Growing acceptance of personalized medicine could drive adoption of NeuroPace's RNS System.
Why Bear
- •Slower-than-expected adoption rates of the RNS System are a concern, potentially due to high cost and complex procedures.
- •Community discussions reveal worries about reimbursement challenges from insurance providers.
- •Competition from established pharmaceutical treatments and other neuromodulation devices remains a significant hurdle.
- •Market perception indicates a cautious approach due to the limited long-term clinical data available for the RNS System.
Latest News
-
12 Health Care Stocks Moving In Wednesday's Intraday Session
benzinga · Nov 5, 2025
-
Johnson Controls, Babcock & Wilcox, Lemonade, Lumentum, Teva Pharmaceutical And Other Big Stocks Moving Higher On Wednesday
benzinga · Nov 5, 2025
-
12 Health Care Stocks Moving In Wednesday's Pre-Market Session
benzinga · Nov 5, 2025
-
Earnings Scheduled For November 4, 2025
benzinga · Nov 4, 2025
Technical Analysis
Rationale
AI-generated technical analysis for NPCE including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
Share your analysis and discuss NeuroPace, Inc. (NPCE) with other investors. Log in to post.
Sentiment
Community sentiment and discussion activity for NPCE.
Make a Prediction
Set your price target for NeuroPace, Inc. (NPCE), choose a timeframe, and track your prediction accuracy.
Current price: $15.86
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NPCE.
Price Targets
Median: $19.00 (+19.8% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
-
Revenue Growth 6/100
Revenue increased 22.1% YoY, reflecting moderate but steady business growth.
-
Gross Margin 10/100
Gross margin of 76.8% shows excellent pricing power and a strong competitive moat.
-
Operating Leverage 6/100
Revenue growth is driving operating leverage, meaning profits can grow faster than costs.
-
Cash Runway 5/100
Limited cash of $13M could constrain flexibility; watch for dilution risk or debt issuance.
-
R&D Intensity 10/100
Investing 29.6% of revenue in R&D signals heavy commitment to innovation and future product pipeline.
-
Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
-
Short Interest 10/100
Daily turnover of 0.70% indicates healthy liquidity with smooth entry/exit for investors.
-
Price Momentum 3/100
Weak momentum with few bullish signals. The stock may be in a downtrend or consolidation phase.
-
News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates NPCE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
12 Health Care Stocks Moving In Wednesday's Intraday Session
Johnson Controls, Babcock & Wilcox, Lemonade, Lumentum, Teva Pharmaceutical And Other Big Stocks Moving Higher On Wednesday
12 Health Care Stocks Moving In Wednesday's Pre-Market Session
Earnings Scheduled For November 4, 2025
Frequently Asked Questions
What does NeuroPace, Inc. do?
NeuroPace, Inc. is a medical device company that specializes in the development and commercialization of the RNS System, a brain-responsive neuromodulation system designed to treat medically refractory focal epilepsy. The RNS System works by monitoring a patient's brain activity, detecting abnormal electrical patterns that indicate an impending seizure, and then delivering targeted electrical stimulation to prevent the seizure from occurring. This personalized, real-time treatment approach differentiates NeuroPace from traditional epilepsy treatments, offering a potential solution for patients who have not responded to medication. The company sells its RNS System to hospitals and epilepsy centers for implant and replacement procedures.
Is NPCE stock a good buy?
NPCE stock presents a speculative investment opportunity with significant growth potential but also considerable risk. The company's innovative RNS System addresses a substantial unmet need in the epilepsy market, and its strong gross margin of 76.8% suggests pricing power. However, NeuroPace is currently unprofitable, with a negative P/E ratio of -21.65 and a profit margin of -25.3%. Investors should carefully consider the company's financial performance, market competition, and regulatory landscape before investing. Positive clinical data, expanding insurance coverage, and strategic partnerships could drive future growth, while regulatory setbacks and product liability risks could negatively impact the stock.
What are the main risks for NPCE?
NeuroPace faces several key risks, including regulatory hurdles, competition, product liability, and financial constraints. The company's reliance on the RNS System as its primary product makes it vulnerable to technological advancements by competitors and changes in the regulatory landscape. Product liability claims associated with medical devices could also pose a significant threat. Furthermore, NeuroPace's current lack of profitability and reliance on external funding raise concerns about its long-term financial sustainability. Economic downturns could affect hospital budgets and patient access to treatment, impacting sales of the RNS System. Investors should carefully assess these risks before investing in NPCE.
Is NPCE a good stock to buy?
Whether NPCE is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the NPCE MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is NPCE data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for NPCE?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to NeuroPace, Inc..
Who are NPCE's main competitors?
NeuroPace, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how NPCE compares.
What do analysts say about NPCE?
Analyst ratings and price targets for NPCE are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is NPCE's market cap?
Market capitalization reflects the total market value of NPCE's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has NPCE stock performed recently?
Check the Chart & Info tab for NPCE's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in NPCE?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for NPCE-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling NPCE?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for NPCE.
Is NPCE a good stock for beginners?
NeuroPace, Inc. (NPCE) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is NPCE for first-time investors?
Every stock carries risk, including NeuroPace, Inc. (NPCE). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like NPCE.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and due diligence.