Market Overview

3 Medical Tech Trading Ideas With Upcoming Catalysts

3 Medical Tech Trading Ideas With Upcoming Catalysts
  • Caroline Corner, an analyst at Cantor Fitzgerald that covers medical technology highlighted three companies with upcoming catalysts.
  • The three names are: Alimera Sciences Inc (NASDAQ: ALIM), Cerus Corporation (NASDAQ: CERS), and Intersect ENT Inc (NASDAQ: XENT).
  • Corner stated all three companies have "strong fundamentals" and "solid growth prospects" ahead.

Medical Technology companies haven't been immune to the market declines seen in the past few weeks with several names experiencing large sell-offs. However, the often overlooked sector could provide investors with outperformed returns.

In a report published Monday, Cantor Fitzgerald analyst Caroline Corner, PhD, offered three medical technology stocks that have "strong fundamentals" and "solid growth prospects" and are attractive following the recent market pullback.

Related Link: Small-Cap Healthcare ETF: A Baby Thrown Out With The Bathwater

Alimera: Safety Profile Is Pristine

Partner pSivida issued a press release this week stating that the FDA will let it use six-month data to support approval of its Medidur for posterior uveitis instead of 12-month data. This "matters" to Alimera as Medidur "is the exact same product" as ILUVIEN, but only used in another indication.

The FDA's action on Medidur may confirm the safety profile of the product. As such, the only issue that may be slowing ILUVIEN's U.S. launch into the DME market and the associated revenue ramp is a lack of a CMS J code – which the company has said will become effective January 1 of next year. The analyst noted that revenues will ramp once physician offices employ the code and can prescribe and pay for ILUVIEN more easily.

Shares remain Buy rated with an unchanged $10 price target.

Cerus: Reimbursement Codes Expected To Be Announced

Cerus expects CMS to announce 2016 reimbursement codes for outpatient blood products in November.

Corner noted that management has said they are "optimistic that we will see an appropriate code" while the analyst suggested that an "appropriate" reimbursement amount would be $650/unit or more, reflecting what hospitals already pay for gamma irradiated platelets.

Shares remain Buy rated with an unchanged $7 price target.

Intersect: Supportive Data

Finally, Corner noted that Intersect's management continues its efforts to "broaden" the company's pipeline through ongoing clinical trials.

Corner also pointed out that doctors presented data from two studies (during the American Rhinological Society meeting) using the company's steroid-eluting bioresorable implants. Long-term results were presented using RESOLVE, the company's pipeline product designed to approach refractory sinusitis. Patients saw significant improvements in symptoms and control patients saw a 3.6x increased risk of additional surgeries.

Another study featured long-term outcomes with PROPEL and showed significant improvement in patient outcomes, as well as suggesting continued improvement after resorption.

Shares remain Buy rated with an unchanged $35 price target.

Latest Ratings for ALIM

Apr 2020H.C. WainwrightReiteratesBuy
Apr 2020B. Riley FBRMaintainsBuy
Nov 2019H.C. WainwrightMaintainsBuy

View More Analyst Ratings for ALIM
View the Latest Analyst Ratings


Related Articles (CERS + ALIM)

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Posted-In: American Rhinological Society Cantor FitzgeraldAnalyst Color Long Ideas Health Care Analyst Ratings Trading Ideas General Best of Benzinga

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