Raymond James analyst Rahul Sarugaser said Opsens Inc.’s contract with Vizient Inc. is a catalyst he’s been waiting for.
On Wednesday, the Quebec City-based cardiology-focused medical device maker announced an Innovative Technology contract with the largest medical group purchasing organization in the U.S.. The agreement provides access to its OptoWire III device for the diagnosis and treatment of coronary disease.
“We have been waiting for GPO contracts like these to drive OptoWire’s U.S. market share capture, and OPS has delivered,” said Mr. Sarugaser. “We believe signing a contract with Vizient, in particular, should be major accelerant in the adoption of OPS’s core OptoWire technology, which already drives 60 per cent of OPS’s revenue (FY20) and has been used to treat 100,000 patients globally. Revenue impact from the Vizient contract we expect to begin during 4Q21 and ramp steadily thereafter.”
Based on the deal, he raised his revenue estimates for 2021, 2022 and 2023 to $37.1-million, $46.3-million and $56.7-million, respectively, from $36.3-million $43.8-million and $52.2-million.
Keeping an “outperform” rating for Opsens shares, he also increased his target to $2.75 from $2.50. The average is $2.63.