It might not have the biotech buzz or the cannabis cachet, but the medical device space is definitely worth a look – especially if you can get the skinny on some of the gamers, that is- to say. To this end, Cantech has three names listed in Canada and approved by analysts for our loyal readers.
Starting as always in no particular order, we have Perimeter medical imaging AI (Perimeter Medical Stock Quote, Charts, News, Analysts, Financial Data TSXV: PINK), which markets its FDA-approved optical coherence tomography (OCT) diagnostic imaging system in the United States. Perimeter is focused on providing advanced, high-resolution, real-time imaging tools, initially launching the OCT Perimeter in the United States for the assessment of the intraoperative margin (one to two mm below the surface) during breast lumpectomy, which the company says may improve the length of term outcomes for cancer patients and lower costs for healthcare systems.
Perimeter Institute recently released its second quarter 2021 results, which showed zero revenue and a net loss of $ 3.2 million or $ 0.07 per share.
“We believe we have made significant progress over the past quarter as we continue to scale up our commercialization efforts to bring Perimeter’s innovative ‘real-time’ imaging technology to our target customers,” said Jeremy Sobotta, CEO of Perimeter, in an August 30 press release. . “Our initial Market Development Leads, under the leadership of our Commercial Director, are actively meeting with prominent surgeons to place the OCT Perimeter S-Series in major healthcare facilities in key regions of the United States.”
With a market cap of just $ 115 million, PINK began listing on the TSX Junior Board in June 2020 after a reverse takeover and no-middleman private placement funding of $ 10 million. The stock saw a huge surge, dropping from an initial amount of $ 1.50 to $ 4.84 in March of this year, followed by an almost equally steep decline until it trades. now between $ 2.50 and $ 2.60.
But PINK is expected to return to that March high, according to Research Capital analyst Yue (Toby) Ma, who updated clients on Perimeter Medical on Aug.31. Ma said Perimeter’s next trial – the company will test Perimeter’s OCT in conjunction with its ImgAssist AI software as a medical device – should boost usage of its OCT system. The trial is expected to start in September 2021 with intermediate and final results expected in the first quarter of 2022 and mid-2022 respectively.
“The results of the pivotal trial are important events to watch in the short term. We believe the Perimeter OCT / ImgAssist AI combo represents revolutionary imaging technology for breast cancer surgery, which is expected to generate rapidly growing revenues in the future, ”Ma wrote.
With her update, Ma reaffirmed her “speculative buy” rating for PINK and her target price of $ 4.90, which, at the time of publication, represented an expected 12-month return of 85%.
Then is Deep Medical (Profound Medical Stock Quote, Charts, News, Analysts, Financials TSX: PRN), which is also in the commercialization phase in the United States for its non-invasive image-guided therapy technology, TULSA-PRO, which uses temporal magnetic resonance, robot-driven ultrasound and closed-loop thermal feedback control. TULSA-PRO, which was cleared by the FDA in 2019, is being used for the ablation of pathologic prostate tissue and Profound is currently ramping up its unit facilities across the country.
Last month, on August 25, Raymond James analyst Rahul Sarugaser released a report comparing the specifications of the TULSA-PRO to those of the Focal One High Intensity Focused Ultrasound (HIFU) device from the EDAP TMS therapeutic ultrasound company for the treatment of prostate cancer. Sarugaser said one-on-one, clinical data from TULSA-PRO shows “objectively superior safety” compared to Focal One. Additionally, Sarugaser stated that the TULSA-PRO shows much wider utility as it can be used not only in focal ablation (as is the case with Focal One) but for partial and entire ablation of the gland, which equates to a larger total addressable market – a TAM that Sarugaser estimates at over one million patients.
“Whether for entire or focal gland ablation, we find that PROF TULSA has objectively greater safety than EDAP HIFU. We also find, using equal market assumptions, that PROF TULSA achieves 62% higher revenues than EDAP HIFU. In addition, given its much wider utility, PROF TULSA’s TAM is, in fact,> 10 times larger than that of EDAP HIFU, ”Sarugaser wrote.
With his report, Sarugaser reiterated his “Strong Buy 1” rating for PRN, a stock that, like Perimeter, saw both a rise earlier this year and a decline. Currently, the stock is down 30% for the year to date.
Last we have Theralase Technologies (Theralase Technologies Stock Quote, Charts, News, Analysts, Financial Data TSXV: TLT), a drug and device developer currently working on photodynamic therapy for the treatment of unresponsive non-invasive bladder cancer (NMIBC) not at BCG. The company also has a historic business in cold laser therapies for pain and inflammation.
Theralase is currently recruiting subjects for a pivotal Phase 2 trial involving 125 patients for its TLD-1433 photodynamic therapy, with the company recently reporting an interim treatment review of 27 subjects over a 450-day treatment period. At 90 days of treatment, 33.3% of 27 subjects achieved a complete response, which decreased to 18.5% at 270 days and 11.1% at 360 days.
Looking at the results in a report to clients on August 31, Research Capital analyst Andre Uddin wrote: One hundred (11) of 27 subjects who had not received two doses of TLD-1433.
“As the pivotal Phase 2 trial continues to progress, we believe the results should elucidate the efficacy potential of TLT-1433,” Uddin said.
At $ 0.215 per share at Friday’s close, Theralase is now up a hair’s breadth from the $ 0.19 per share it ended 2020 on. But Uddin sees a lot of advantages from it. here, reiterating in its report a “speculative buy” rating and target price of $ 0.70, which, at the time of publication, represented a one-year expected return of 233%.