After its preliminary quarterly revenue results, Mackie Research analyst André Uddin remains bullish on medical device company Profound Medical Corp (Profound Medical Stock Quote, Chart TSXV:PRN), which should be able to launch its real-time magnetic resonance imaging and ultrasound technology, the TULSA-PRO, in the United States by the second half of 2019.
Last week, Profound Medical released its preliminary Q4 revenues, anticipating a total of $1.6 million for the quarter and $2.5 million for the year.
“The initial commercial launch of Sonalleve in China, combined with growing interest from European doctors, clinics and patients in TULSA-PRO, led to this significant rebound in quarterly revenues,” said CEO Arun Menawat in a press release. “We believe this renewed sales traction should continue into 2019 and are also looking forward to a number of major milestones coming up in the first half of the year, particularly the release of the full 12-month results from the TACT pivotal study designed to further evaluate the safety and efficacy of TULSA-PRO to ablate prostate tissue in patients with localized, organ-confined prostate cancer.”
In a research update to clients last Thursday, Uddin said Profound’s projected Q4 revenue would be ahead of his estimate of $1.0 million and the consensus $0.9 million, pointing out that PR had zero device sales for either the Tulsa Pro or Sonalleve over the first three quarters of 2018. He stated that PRN is currently conducting a pivotal trial for its Tulsa Pro, one which would support its 510(k) submission to the US FDA, with full results from the study likely to come in early May.
Uddin is maintaining his “Speculative Buy” rating and $1.10 target price, saying, “PRN is cheap considering pivotal results are expected shortly -a major catalyst for the stock.”
Uddin’s target represented a projected return of 69 per cent at the time of publication.