Novadaq Technologies results are “unambiguously positive” says Byron Capital

Byron Capital analyst Douglas Loe says the results Novadaq Technologies (Novaday Technologies Stock Quote, Chart, News: TSX:NDQ) today announced from its PILLAR 2 study underscore his positive assessment of the company as an investment.

This morning, Novadaq announced that interim results from the 150 patient PILLAR™II, Perfusion Assessment in Laparoscopic Left Anterior Resection, were presented during the 2013 Society of American Gastrointestinal and Endoscopic Surgeons (SAGES) meeting which is being held in Baltimore, MD from April 17-20. The company presented the results from 66 of the 150 patients, and none of them showed complications.

Novadaq’s PINPOINT device device, which was used in the study, is a patented optical endoscope that can visually detect a fluorescent dye called indocyanine green. This dye binds tightly to serum albumin, so it can be used to assess tissue perfusion in real time. This ability is potentially useful in many surgical markets, including the colorectal surgery that the study was based on.

Loe says he believes the final data from today’s study will ultimately be good and says today’s announced results were an “unambiguously positive demonstration of PINPOINT’s indispensability can be a key medium-term adoption driver in U.S. medical markets.” He says the PINPOINT performance in the study was consistent with the utility that Novadaq’s SPY imaging technology has demonstrated in other medical markets. In a research update to clients this morning, Loe reiterated his BUY rating and $14.50 one-year target on Novadaq.

Mississauga-based Novadaq Technologies, which was founded in 2000, designs imaging technology products used in surgery. The company’s SPY systems allow surgeon to view archive image sequences of blood flow in vessels, micro vessels and tissues in real time during surgery. SPY is FDA cleared for use for use in seven surgical specialties, including coronary artery bypass, cardiovascular, plastic, reconstructive, micro, organ transplant, gastrointestinal and minimally invasive surgery.

Shares of Novadaq on the TSX closed today up 23.9% to $13.06.