Opsens Inc V.OPS

Primary Symbol: T.OPS

Healthcare Medical Devices

OpSens Inc. is a medical device cardiology-focused company. The Company offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. The Company’s segments include Medical and Industrial. The Medical segment focuses on physiological measurements, such as Fractional Flow Reserve (FFR) and Diastolic Pressure Ratio (dPR) in the coronary artery disease market and also supplies a range of miniature optical sensors to measure pressure and temperature to be used in a range of applications that can be integrated into other medical devices. The Industrial segment develops, manufactures and installs fiber optic sensing solutions for critical and demanding industrial applications. Its flagship product, the OptoWire, is a second-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and lesions access. It is approved for sale in the United States, European Union, Japan and Canada.

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Post by retiredcfon Jul 12, 2022 8:36am

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Post# 34817391

RBC

July 11, 2002

Opsens Inc.
New GPO contract for OptoWire III

TSX: OPS | CAD 2.25 | Outperform | Speculative Risk | Price Target CAD 4.00

Sentiment: Positive

OpSens announced a new GPO contract in the US. OPS announced that the company has been awarded a national group purchasing agreement for Interventional Specialty Diagnostics with Premier (GPO). Premier has alliances with ~4,400 U.S. hospitals and health systems. As per the agreement effective 1-July, Premier members can take advantage of special pricing and terms pre- negotiated by Premier for OptoWire III and related system components. OpSens now has GPO contracts covering over 90% of hospitals in the US. Premier is one of the largest GPOs in the US and today's agreement should aid market share growth of OptoWire in the US. OptoWire currently has a modest ~3-4% share of the ~US$225MM US fractional flow reserve (FFR) market, vs. its stronger ~15% share in Canada and Japan (total ~US$110MM market) and ~7% share in EMEA (~US$135MM market). We believe the newly announced contract should strengthen OpSens’ positioning in the US market when it comes to securing additional GPO contracts.

OpSens expanding sales force ahead of the potential launch of SavvyWire in the US. Management has previously highlighted that the company will increase the number of territory managers in the US from ~10 to ~20–25 later this year ahead of the potential launch of its TAVR guidewire, SavvyWire. In our view, the expanded sales force in the US should also aid the market penetration of OptoWire in the US market.

FDA approval of SavvyWire (TAVR guidewire), the next big catalyst. OPS received Health Canada approval for SavvyWire in late Apr-22, which was slightly ahead of the company's anticipated timelines of approval in the May'22-Jun'22 timeframe. Management has guided for an approval from the FDA by early Q4'22. OPS will report FQ3/22 earnings later this week (14-Jul, preview) and we expect updates on the approval timelines for SavvyWire in the US and updates on company's commercial strategy in the US.