Treasure Chest | Nov 07 2011
What?
Biotech company Impedimed ((IPD)) has surprised analysts and investors this morning by announcing FDA clearance of the Company’s LDex U400 device. RBS Morgans analysts see "plenty of upside" for the share price following this announcement.
Why?
Impedimed has announced it has received clearance from the US FDA clearance of the Company’s LDex U400 device to aid in the clinical assessment of unilateral lymphoedemaof the arm in women, and legs for both men and women. Additionally, the FDA has allowed the indication to be expanded to include patients who will have, or who have had lymph nodes from the axillary and pelvicregions removed, damaged or irradiated. RBS analysts, who have been positively surprised by this announcement, report this broadens the claim beyond just cancer and no longer links it to any one specific cancer.
The analysts report company management sees this as an additional major expansion of the available market. RBS estimates this could easily triple the current accessible market.
The analysts point out their present forecasting does not include any upside for this approval. Previously the analysts have run scenarios which account for this possibility and it values the company over $4.00 per share. While admitting it is early days yet on penetrating this market, this morning's announcement is labelled "very positive" by RBS Morgans.
RBS anticipates investors will react positively to the announcement, while noting there's "plenty of upside to our price target and valuation".
The FNArena archive shows RBS (Morgans) rates the shares Buy with a price target of $1.14 (probably under review now). The shares last traded at $0.57.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
