Sensus Healthcare Inc. (SRTS:NASDAQ) signed an agreement with Mattioli Engineering Italia SPA for it to exclusively distribute Sensus' TransDermal Infusion System, H.C. Wainwright & Co. analyst Yi Chen reported in a Dec. 2 research note.
In light of this development, the investment bank increased the revenue it forecasts Sensus to generate in the next 12 months to $1.94 per share from $1.76. This boosted H.C. Wainwright's target price on the medical device firm to $10 per share from $9. (Sensus' share price today is about $7.02.)
Chen highlighted the benefits of Sensus' product, a vehicle for delivering ionic drugs to a person, which has U.S. Food and Drug Administration approval for use on any place of the body in which injections are given.
For one, Chen noted, through the infusion system, the body can absorb drugs it otherwise cannot, such as Botox, hyaluronic acid, lidocaine, collagen and others employed in aesthetic dermatologic procedures. This is because with infusion, the drugs "penetrate the innermost hypodermic layer of skin by increasing permeability," he explained.
Two, the infusion system is noninvasive, not affecting or damaging skin, Chen wrote. This means patients can get various fillers and other injectable drugs pain free and without down time.
As such, Sensus plans to market its system to dermatologists for various applications, including use in skin rejuvenation and pre-laser treatments and pre and post plastic surgeries.
"This needle-free treatment presents a clear competitive advantage in the aesthetic dermatology space and could help drive the company's top and bottom line growth in the coming years," Chen commented.
Mattioli Engineering is an ideal firm to distribute Sensus' infusion system given its decades long work in medicine and its contacts and customers in aesthetic dermatology specifically. For this market, Mattioli has developed and continues to develop new devices and technologies and within it, has created a global customer network.
The analyst also pointed out the aesthetic dermatology market is "substantial," and he cited supporting statistics. Among them are that the current Botox market in the U.S. is $5 billion. Last year, in the States, 4.4 million Botox injections were administered along with 3.4 million filler injections, and 1 million laser skin resurfacing procedures were done.
"The TransDermal Infusion System has strengthened Sensus' offerings," which primarily consist of radiation therapy delivery systems, wrote Chen.
H.C. Wainwright & Co. has a Buy rating on Sensus Healthcare.
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