Epilepsy-Focused MedTech NeuroPace Has Attractive Entry Point, Competitive Position

Cantor Fitzgerald initiated coverage on NeuroPace Inc NPCE, a commercial-stage medical device company focused on drug-resistant epilepsy treatment through the company's responsive neurostimulation device (RNS).

The analyst Ross Osborn initiates with an Overweight rating and a price target of $11.

He notes the company addresses a currently estimated ~$2 billion market opportunity based on the 1.2 million people living with drug-resistant epilepsy (DRE) in the U.S. (~one in three patients with epilepsy). 

The opportunity to expand indications also provides a strong TAM growth potential.

The analyst notes that the company's differentiated proprietary technology drives adoption. 

NPCE's RNS System provides a unique window into brain activity, compared to other neuromodulation technology, offering continuous brain activity monitoring, recognizing and responding to patient-specific seizure patterns, and recording ongoing intracranial electroencephalography data.

Cantor notes NPCE's shares are currently trading at 2.6x CY24E revenue versus high-growth MedTech peers at 3.3x, representing an attractive entry point.

Price Action: NPCE shares are up 1.15% at $7.83 on the last check Friday.