Brian Marckx, CFA
Novel Wound Care Device Could Be Big
SANUWAVE (SNWV) has developed what could be a very effective, yet significantly lower cost alternative to current treatments for chronic diabetic foot wounds, an annual market worth $2 billion – $3 billion. Top-line data from a pivotal Phase III trial, announced in late-2010 looked very encouraging. Final PMA module filing expected in Q2 2011. FDA approval and U.S. launch could happen in 1H 2012. dermaPACE complements recent health care reform measures emphasizing cost-efficient care for chronic conditions.
We think SNWV has a very compelling story. Based on the current share price we think the stock is near fair value but believe valuation should expand as certain risks abate. Our current target price is $6.00 / share. We are initiating coverage with a Neutral rating.
See below for access to our full 25 page initiation report on SNWV.
BUSINESS
Headquartered in Alpharetta, Georgia, SANUWAVE Health, Inc. (SANUWAVE) is developing non-invasive medical devices using its proprietary Pulsed Acoustic Cellular Expression (PACE™) technology to aid in the body’s repair and regeneration of tissue, musculoskeletal and vascular structures. PACE works by creating shock waves which, in-turn, elicit a biological response and help the healing process.
Recent clinical studies have indicated the company’s lead product, dermaPACE
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