Profound Medical Corp (PROF)

[hayfarmer]

From the Cantech letter 9/10/21:

Here is a link to the full post

https://www.cantechletter.com/2021/09/these-three-medical-device-stocks-are-all-buys/

Next is Profound Medical (Profound Medical Stock Quote, Charts, News, Analysts, Financials TSX:PRN), which is also in the commercialization stage in the United States for its non-invasive, image-guided therapeutic technology, the TULSA-PRO, which uses real-time magnetic resonance imaging, robotically-driven ultrasound and closed-loop thermal feedback control. The TULSA-PRO, which was cleared by the FDA in 2019, is used for the ablation of pathologic prostate tissue and has Profound currently ramping up its installations of units across the country.

Last month on August 25, Raymond James analyst Rahul Sarugaser released a report where he compared the TULSA-PRO specs to those of therapeutic ultrasound company EDAP TMS’ Focal One high-intensity focused ultrasound (HIFU) device for the treatment of prostate cancer. Sarugaser said head-to-head, the TULSA-PRO’s clinical data show “objectively superior safety” versus the Focal One. Further, Sarugaser said the TULSA-PRO shows much broader utility as it can be used not just in focal ablation (as is the case for Focal One) but for partial and whole gland ablation, thereby equating to a larger total addressable market — a TAM which Sarugaser puts at over one million patients.

“Whether for whole gland or focal ablation, we find PROF TULSA to have objectively superior safety to EDAP HIFU. We also find, using equal market assumptions, PROF TULSA captures 62 per cent higher revenue than EDAP HIFU. Further, considering its much broader utility, PROF TULSA’s TAM is, in fact, >10x larger than that of EDAP HIFU,” Sarugaser wrote.

With his report, Sarugaser reiterated his “Strong Buy 1” rating for PRN, a stock which, like Perimeter, had both a run-up earlier this year and a pullback. Currently, the stock is down 30 per cent for the year-to-date.