Following the company’s fourth quarter results, Mackie Research Capital analyst André Uddin is still bullish on Helius Medical Technologies (TSX:HSM).
Yetserday, Helius reported its fourth quarter results. The company lost (USD) $5.7-million on zero revenue, a result that compared unfavorably to last year’s Q4 loss of $3.8-million, also on zero revenue.
Uddin says that though Heluis’s bottom line was worse than the $4.1-million loss he expected, he isn’t putting much weight into the result.
“Financial results are less important for Helius at this time as the company’s PoNS device is still in clinical development,” says the analyst. “Helius is running a double-blind, randomized, sham-controlled Phase III study to test PoNS in 120 mild-tomoderate traumatic brain injury (mTBI) patients. The trial was launched in Aug. 2015, and we expect the data readout in Q3 CY2017. A small-scale, sham-controlled feasibility study is also being conducted in 44 mTBI patients, with results also expected around Q3 CY2017. Achieving positive results of these trials should be sufficient to support PoNS’ regulatory application. We expect Helius to file the application with the FDA via the de novo pathway.”
In a research update to clients today, Uddin maintained his “Speculative Buy” rating and one-year price target of $3.00 on Helius Medical Technologies, implying a return of 55 per cent at the time of publication.
Uddin thinks Helius will lose $13.93-million on revenue of $13.89-million in fiscal 2018.