Opsens Inc 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 Mar 15, 2023 9:31am

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Post# 35339373

RBC

March 14, 2023

Opsens Inc.
First GPO agreement for SavvyWire

TSX: OPS | CAD 1.71 | Outperform | Speculative Risk | Price Target CAD 4.00

Sentiment: Positive

SavvyWire added to Premier GPO contract. OPS announced today that SavvyWire has been added to the Premier GPO contract. This is the first group purchasing agreement for SavvyWire. Premier is one of the largest GPOs in the US and today's agreement should aid ramp-up of SavvyWire in the US. Premier has alliances with ~4,400 U.S. hospitals and health systems. The new agreement allows Premier members to take advantage of special pricing and terms pre-negotiated by Premier for SavvyWire and related system components. SavvyWire is OPS' second product to be added to Premier’s offer. Recall that OPS had secured a Premier GPO contract for OptoWire III in July 2022 (here). We believe the announcement today strengthens OPS’ positioning in the US market when it comes to securing additional GPO contracts for SavvyWire. For OptoWire, OPS has contracts in place covering over 90% of hospitals in the US through group purchasing agreements.

Full commercial launch of SavvyWire expected in H2/FY23 (Mar'23-Aug'23). OPS is currently doing a controlled market launch of SavvyWire in the US. At the FQ1 earnings call in Jan-23, management had noted a full commercial launch of SavvyWire in H2/ FY23. In our view, the ramp-up of SavvyWire in the US will be dependent on the shift to LV pacing for TAVR procedures over time. Currently, only 10% of US surgeons use LV pacing during TAVR procedures, while this percentage is significantly higher in Canada and Europe.

Significant opportunity with SavvyWire. We see a strong opportunity related to OPS’ newly approved TAVR guidewire (SavvyWire). Today, the TAVR procedure typically requires the use of an echocardiogram and rapid pacing in addition to a guidewire. SavvyWire provides a 3-in-1 solution for stable aortic valve delivery and positioning, continuous accurate hemodynamic measurement during the procedure, and left ventricular pacing without the need for adjunct devices or venous access, making it a first in class TAVR guidewire to carry out all three procedures simultaneously. We believe time/cost savings and efficacy benefits could allow OPS to ultimately command material TAVR guidewire supply in its current markets. Management has noted that the global TAVR market is currently estimated at ~200,000+ procedures and is expected to reach ~400,000 procedures by 2027.