London New York San Francisco Boston
September 21, 2021
Price Target: $13.00
BioSig Technologies, Inc. (BSGM - $2.85)
Encouraging Management Update on PURE EP Outlook After Recent HRS 2021 and Other Medical Meetings
BSGM hosted a conference call with investors this afternoon with updates of recent developments and expectations for 2021 and beyond. We walked away highly encouraged as the company has further enhanced its sales and marketing efforts, as well as the impressive PURE EP clinical study outcome reported at the HRS 2021 provide a strong foundation for revenue growth in 2H21 and beyond.
• Details. BSGM reiterated the guidance that PURE EP system is expected to be installed in 20 hospitals (currently in 13) and used in >1,500 procedures (1,370 as of 9/7/21) by YE21. The recent 13th hospital partner is St. Elizabeth’s Medical Center in Boston that will also explore using PURE EP during physiologic pacing procedures. BSGM currently has five commercial contracts and expects more to come later in 2021 and 2022. It also has 40 PURE EP systems in its inventory.
BSGM indicated that the presentation and discussions at the HRS 2021 meeting provided a substantial boost to PURE EP’s outlook. On the data side, it has shown that ~75% (164/218) of PURE EP-facilitated surgical cases were rated superior; while 93% (204/218) of PURE EP processed signals are equivalent or superior compared to the conventional method. Further, >50 high quality potential leads were generated during the meeting for further discussions and negotiations.
The company also is engaged in different discussions with hospital and hospital systems for various potentially creative business opportunities. In addition, BSGMs internal screening method has further improved, therefore, it has increased the likelihood that prospects in discussion would have the resources to be a potential PURE EP system purchaser later.
• Implications. We view the positive PURE EP 2.0 clinical study data reported at HRS 2021 meeting laid a strong foundation not only to help gain more physician buy-in, but also provide hospital administrators with more tangible evidence for making purchase decisions. Given PURE EP is the only system in the market for potentially improved surgical outcomes, and also increasingly gained greater awareness, we believe BSGM is a good position in expanding market share in the near-term. Together, we anticipate greater growth in numbers of installed hospitals and revenue later this year and in 2022.
• Action. With the PURE EP system at an early stage of commercialization and a positive outlook for its revenue stream, we believe BSGM shares remain undervalued. We reiterate our Buy rating and 12-month target price of $13 based on our forward P/E analysis
Anticipated milestones in 2021 and beyond
Expand marketing and sales effort at hospitals 2021 ***
Report redo ablation clinical trial results 1Q22 ***
Potentially initiate additional clinical study 1H21 ***
Participate medical and industry events 2H21 ***
Potentially receive EU approval 4Q21 ***