Investors have to be patient !

Despite continuing to have “strong conviction” on the potential for its SavvyWire product as it continues to gain traction on both sides of the border, Raymond James analyst Rahul Sarugaser lowered his recommendation for Opsens Inc. (

OPS-T -6.22%decrease
) to “outperform” from “strong buy,” expecting continue macroeconomic headwinds to keep its shares range-bound in the near-term.”


Following in-line fourth-quarter results, Mr. Sarugaser reiterated his view that SavvyWire, a guidewire in transcatheter aortic valve replacements (TAVR) procedures, has “strong” commercial potential that could drive top-line revenue for the Quebec City-based medical device cardiology-focused company of more than $100-million by 2026. During the quarter, Opsens received approval from the United States Food and Drug Administration for the 3-in-1 guidewire.

“All eyes remain on OPS’ launch of SavvyWire,” he said. “During the conference call, management indicated that the SavvyWire launch is proceeding ahead of schedule in all geographies: in Canada, SavvyWire is being used in 9 centres with more than 200 units shipped (more than 50 per cent repeat orders); in the U.S., OPS is already shifting from its limited launch stage (5 centres) to Phase 1 which will immediately expand OPS’s base to 10 centres with the goal of deeply penetrating 20 centres in the near-term. We’re encouraged by this fast ramp and evidence of strong traction. As a result of the SavvyWire roll-out, costs were up materially, as expected (S&M: up 19 per cent quarter-over-quarter, 198 per cent year-over-year; R&D: down 2 per cent quarter-over-quarter, up 68 per cent year-over-year), with OPS burning $4.2-million, leaving $23.8-million in cash at FYE22.”

Though he also sees “relatively rapid progress toward European market penetration,” Mr. Sarugaser trimmed his target for Opsens shares by $1 to $5, citing “sustained med-tech sector multiples’ weakness.” The average target on the Street is $4.03.


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