Rodman & Renshaw maintains a Buy rating on Presbia PLC LENS after an interim data from the company showed that its corneal inlay product, the Flexivue Microlens, can achieve "significant improvement in uncorrected near vision acuity without loss of distance vision performance."
"An average of five lines of improvement in uncorrected near visual acuity was observed in treated eyes across 100 percent of the six-month U.S. study cohort," analyst Raghuram Selvaraju wrote in a note.
Selvaraju expects Presbia to complete this study in late 2017, with a formal approval of the product expected in late 2018.
Noting that the company could independently launch the Flexivue Microlens in the United States, the analyst expects that the product could generate peak sales of $445 million in the United States alone and $530 million worldwide by 2030.
As per the discounted cash flow-based net present value (NPV) method, the analyst estimate a total value of $275 million for the Flexivue Microlens product, using an 18 percent discount rate, 60 percent manufacturing and marketing offset and a 12.5 percent effective tax rate (Presbia is based in Ireland). This results into a price per share of $14.00, assuming $25 million in cash and 20 million shares outstanding as of end-2017.
At the time of writing, Presbia shares were down 12.47 percent at $4.28.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
