TSX:OPS - Post Discussion
Post by
retiredcf on Mar 15, 2023 9:31am
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.
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