##{"id":82823,"date":"2019-09-27T09:08:41","date_gmt":"2019-09-26T23:08:41","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=82823"},"modified":"2019-09-27T09:08:43","modified_gmt":"2019-09-26T23:08:43","slug":"research-innovative-medical-device-company-imagion-biosystems","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2019\/09\/27\/research-innovative-medical-device-company-imagion-biosystems\/","title":{"rendered":"RESEARCH: Innovative Medical Device Company, Imagion Biosystems"},"content":{"rendered":"

Imagion Biosystems: Breakthrough Device<\/strong><\/u><\/p>\n

By Pitt Street Research<\/p>\n

An innovative medical device company<\/strong>
\nImagion Biosystems ((IBX)) is an Australian medical device company whose MagSense diagnostic imaging technology, currently in early stage development, can potentially improve on PET and MRI imaging modalities.<\/p>\n

Imagion is currently in preclinical development with the first human pilot studies of the technology intended for 2020. The FDA granted MagSense a Breakthrough Device designation in July 2019.<\/p>\n

Imagion goes to the clinic next year<\/strong>
\nImagion intends to undertake a first-in-human study of the MagSense technology initially in HER2-positive breast cancer to be followed later in prostate cancer and ovarian cancer.<\/p>\n

With HER2-positive breast cancer the goal will be to establish a non-invasive method of detection of cancer in the lymph nodes compared to conventional biopsy of the sentinel lymph nodes.<\/p>\n

Another beneficiary of the personalised medicine trend<\/strong>
\nPitt Street Research believes that the mid-2018 acquisition by Roche of Foundation Medicine, which valued that company at US$5.3bn, was a landmark transaction from the perspective of Imagion shareholders.<\/p>\n

The 2018 acquisition of Sirtex Medical by the Chinese company CDH for $1.9bn, and the current market capitalisation on ASX of Telix Pharmaceuticals are also possible comparisons since in each case these companies combined a radiotracer with treatment.<\/p>\n

Obviously, Imagion is going after detection first, but the company has the same long-term promise of being able to be used for treatment as Sirtex and Telix.<\/p>\n

Potential first sales from 2023<\/strong>
\nImagion intends to sell MagSense on a ‘printer and ink’ model where a low sales price for the SQUID equipment (US$0.5m at a 50% gross margin) is matched with a relatively higher selling price for the nanoparticles (US$1,500 per test for an 80% gross margin).<\/p>\n

Pitt Street Research argues that, potentially, Imagion can look to make its commercial launch in 2022 or 2023.<\/p>\n

Imagion is undervalued on our numbers<\/strong>
\nWe value Imagion at 12 cents base case and 26 cents optimistic case on a risk weighted DCF basis. We see Imagion being re-rated towards our valuation range on the back of improved sentiment towards MagSense as a Breakthrough Device, as the company takes the device into the clinic.<\/p>\n

Download the full report<\/strong><\/p>\n

Yesterday the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:<\/p>\n

https:\/\/www.fnarena.com\/index.php\/pitt-street-research\/IBX\/<\/a><\/p>\n

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