Opsens gains a valuable shareholder in Lumira, says Paradigm

Opsens (Opsens Stock Quote, Chart, News: TSXV:OPS) newest shareholder brings with it more than just cash, says Paradigm Capital Christopher Lam.

Yesterday, Opsens announced it had completed a non-brokered private placement led by Lumira Capital LP, which pocketed the company approximately $5-million. Lumira is a fund that specializes in healthcare and life sciences and has offices in the U.S. and Canada. The firms exits include Pharmasset, which was acquired by Giliad in 2011 for $11-billion and Ception Therapeutics, which in 2010 was acquired by Cephalon for more than $350-million.

Lam says it is a pleasant surprise that Opsens was able to secure an investor with Lumira’s pedigree, noting that the firm has a quarter-century’s worth of experience and is regarded as one of North America’s leading healthcare and life sciences VCs.

“The addition of Lumira Capital as a significant shareholder is a welcome surprise and positive development for Opsens,” says Lam. “Lumira brings an experienced team with both depth and breadth of knowledge within the cardiovascular medical device market. In our view, Lumira should be a valuable resource to Opsens that may further extend the company’s reach within North America. FFR sales since launch have demonstrated market demand and we continue to view OPS as an attractive risk/return opportunity with an expansive near-term growth profile.”

In a research update to clients today, Lam maintained his “Buy” rating and one year target price of $2.15 on Opsens, implying a return of 62 per cent, including dividend, at the time of publication.