NeoDynamics - Equity Research Report - Company sponsored
Key investment reasons:
NeoDynamic's ultrasound-guided biopsy technology NeoNavia® addresses an unmet need in the diagnosis of breast cancer, the most prevalent female cancer type. The breast cancer diagnostic market is expected to be a USD 1.7bn market worldwide by 2025.
Following an FDA approval of NeoNavia®, the primary value driver and focus for NeoDynamics is successful commercialization in the US market, where NeoDynamics is launching NeoNavia® with the FlexiPulse® during 2023.
As a needle ultrasound-guided biopsy, NeoNavia® competes in the premium segment of the breast biopsymarket, which allows NeoDynamics to price and compete based on clinical added benefits as opposed to cost competition.
Based on NeoDynamics’ expectations and assuming different levels of US market share and pricing etc.(see assumptions p. 8-9) our DCF-model indicates that the current market valuation of NeoDynamics implicitly reflects less than 10% of the value potential of a US launch in 2023 and a successful commercialization in the following years (medium market share scenario).
Disclaimer: This report by HC Andersen Capital is commissioned by NeoDynamics, and HC Andersen Capital receives payment from NeoDynamics for a Digital IR/Corporate Visibility subscription agreement. The authors of the report, Henrik Ekman, Oliver Bronze, and Teddy Sun, have no ownership of NeoDynamics. This is not a piece of advice to buy, not to buy, sell, or not to sell shares. The material has been read by the company before publication. HC Andersen Capital assumes no responsibility for the correctness of the contents of the material. However, the information is assessed by HC Andersen Capital to be based on reliable sources. This report by HC Andersen Capital provides information about the company such as financial estimates, risk factors, market drivers, market growth, and valuation perspectives based on well-established valuation methodologies such as multiples, peer comparisons, and DCF-models. In this report, HC Andersen Capital provides no recommendations, and investors must take their own investment decisions. The report may not be distributed in any country where distribution by any laws are prohibited.
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NeoDynamics AB (publ) is a Swedish Medical Technology Company dedicated to advancing diagnosis and care of breast cancer. The company’s first product NeoNavia®, a new innovative pulse biopsy system for ultrasound guided tissue sampling, is currently being introduced to the market. The biopsy system is built on a patented pulse technology, based on research at the Karolinska Institutet in Sweden.
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