Admedus (ASX: AHZ) - ADAPTing to market opportunities
Report released: Wednesday 20 March 2019
Analyst: Stuart Roberts, stuart@ndfresearch.com, +61 447 247 909
Analyst: Stuart Roberts, stuart@ndfresearch.com, +61 447 247 909
Admedus is a tissue engineering company whose ADAPT® range of approved cardiovascular tissue repair patches has enjoyed a steady increase in sales since its 2013 launch. We see a market opportunity for ADAPT® in the hundreds of millions of dollars. In the year to December 2018, Admedus booked A$11.1m in revenue from its ADAPT® products, up from A$7.2m in the previous corresponding period. A new leadership team focused on the market potential of ADAPT® took charge in 2017 and we foresee significant growth in the CardioCel® and VascuCel® products over the next few years. Admedus is currently developing what it considers to be a significant commercial opportunity from the ADAPT® technology that allows it to be used in Transcatheter Aortic Valve Replacement (TAVR). The market here is at least US$3.5bn, growing to US$12bn by 2025. Due to its novel single-piece aortic valve and anti-calcification properties, the Admedus 3D aortic valve has the potential to capture significant global market share. We value Admedus at $0.08 per share base case and $0.21 optimistic case, using a DCF-based approach. Our target price for Admedus is $0.15. We see the market re-rating Admedus as ADAPT® sales increase and the company makes progress with its TAVR product.
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Please note: This research was commissioned by Admedus and NDF Research will receive fees for undertaking it. We don''t think the prospect of these fees directly or indirectly impacted the content provided because we believe very highly in research objectivity. If you think our research wasn't objective, and you've read all of the report, please call the analyst on the number above and cite the parts of the report you think were biased by its being commissioned.
Click here for our initiation report.
Please note: This research was commissioned by Admedus and NDF Research will receive fees for undertaking it. We don''t think the prospect of these fees directly or indirectly impacted the content provided because we believe very highly in research objectivity. If you think our research wasn't objective, and you've read all of the report, please call the analyst on the number above and cite the parts of the report you think were biased by its being commissioned.
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