Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Medical Device Firm Boosts Quarterly Revenue 50% YOY
Research Report

Share on Stocktwits


A Maxim Group report noted the recently announced revenue achieved and anticipated by this producer of cancer treatment devices.

In a Jan 24 research report, Jason Kolbert, a Maxim Group analyst, indicated that IsoRay Inc.'s (ISR:NYSE.MKT) preliminary Q2 FY18 revenues of $1.54 million ($1.54M) were "up 50% year over year, up 27% quarter over quarter and above our forecast of $1.3M." He added, "The company is demonstrating consistent growth as management executes their strategy." For FY 18, the executive team guided to a "revenue target of 20% growth or ~$5.8M."

Kolbert also provided background information on cesium-131 (Cs-131), which IsoRay produces in seed form for use in brachytherapy. He pointed out that "broader adoption is key to market penetration."

Further, he explained that Cs-131 is approved for most solid tumors. It has "more energy and a shorter half-life than iodine-125 or palladium-103, which means Cs-131 could be used in more situations and potentially with better efficacy than other isotopes." Further, physician interest in using Cs-131 in various cancers seems to be increasing. Those include brain (meningiomas, brain metastases and glioblastomas), lung (nonsmall cell lung), gynecological, prostate, and head and neck.

This represents a swing in the other direction from the move a decade ago away from brachytherapy and toward other modalities, such as external beam radiation, robotic surgery and biologics, Kolbert said. However, the "limitations of these therapies are now better understood, setting the stage for [a] market share shift back toward seeds."

About IsoRay's potential with Cs-131, Kolbert concluded, "We see an opportunity for revenues to grow as sales reps' details start to impact usage. We also see the opportunity for margins to climb as fixed costs related to manufacturing are leveraged across greater numbers of patients." For instance, brain cancers, including glioblastoma multiforme and metastasis to brain from breast and lung, "represent up to 70,000 patients." As use of Cs-131 in brain and prostate cancer and other indications develops, "we could see significant revenues in the out-years," he added.

Maxim has a Buy rating and a $3 per share price target on IsoRay, whose stock is currently trading at around $0.48 per share. Kolbert explained, "Our metrics are driven by our assumptions for the market share penetration of Proxcelan (Cs-131 seeds), Cesitrex (liquid Cs-131) and GliaSite (catheter system) in prostate cancer as well as other cancers and gliomas."

Want to read more Life Sciences Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a sponsor of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional Disclosures

Disclosures from Maxim Group, IsoRay Inc., Jan. 24, 2018

I, Jason Kolbert, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report.

I, Jason McCarthy, Ph.D., attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report.

The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors, including the firm's total revenues, a portion of which is generated by investment banking activities.

Maxim Group makes a market in IsoRay, Inc.

Maxim Group expects to receive or intends to seek compensation for investment banking services from IsoRay, Inc. in the next 3 months.

Want to read more about Medical Devices investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe