Small Caps | Jul 17 2015
-Improvements rolling out
-100 units targetted by end 2015
-Geographical expansion in 2016
By Eva Brocklehurst
What is AVERT? Osprey Medical ((OSP)) has made two improvements to its AVERT system which are to be rolled out over the next 6-12 months. AVERT is a medical device the company is developing to reduce kidney damage caused by the dyes used for X-ray during cardiovascular procedures.
The first improvement is a wireless smart syringe which will be easier for the clinician to use and eliminates the expensive cabling that is required with the current syringe. The second is a small, single-use system called DyeVert that automatically regulates the pressure at which the dye is injected, regardless of what dye or catheter is used. DyeVert already has Europe’s CE Mark and the company expects to secure US Food & Drug Administration approval at the end of this year and to market it as part of AVERT in mid 2016.
The company has made substantial progress in driving adoption of AVERT. New guidelines in the US highlight the need to minimise the volumes of dye given when X-raying patients with chronic kidney problems and bode well for future sales of Osprey Medical’s product. Results are expected in November from a post-approval clinical trial designed to support additional claims. The trial is intended to generate data to support up to four additional claims, including dye saving, image quality, reflux reduction and reduction of acute kidney damage. Canaccord Genuity notes the ability of AVERT to save dye without compromising image quality by reducing reflux has been well established through extensive clinical use.
Sales of AVERT units totalled 76 in the June quarter, doubling sales in the prior quarter, and Osprey Medical expects to achieve its initial launch goal of 100 units by the end of this year. The company hopes to expand geographically in 2016, launching nationally in the US later in 2015. Canaccord Genuity considers the initial early adoption of AVERT by several hospitals in Texas bodes well for future sales. Lessons from the Texas launch have resulted in shorter timeframes to sign up new customers. The broker has a Buy rating and $1.50 target on the stock and expects sales to grow rapidly from 2016-17 with the company to become earnings positive in 2017.
Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.
