Impedimed Prospects Boosted By NCCN Advice

This story features IMPEDIMED LIMITED. For more info SHARE ANALYSIS: IPD

-Quick diagnosis with L-Dex
-Roll out in US later in 2015
-Well funded for ramp-up
 

By Eva Brocklehurst

Impedimed ((IPD)) has received a boost from a decision by the US National Comprehensive Cancer Network to recommend patients with breast cancer are monitored and managed for lymphoedema following treatment.

The company's L-Dex technology has not been specifically named but as it provides a way of detecting lymphoedema, brokers believe this may drive increased adoption of the service. Canaccord Genuity considers L-Dex the only practical method for monitoring patients for lymphoedema in a clinical setting. The broker acknowledges the pathway in terms of payment coverage by private funds is not yet clear but there is the potential to accelerate coverage of the service. Canaccord Genuity has a Buy rating and $1.82 target for Impedimed.

NCCN guidelines are developed by an alliance of cancer treatment centres in the US and recognised as providing a standard worldwide in the treatment and management of cancer patients. Cancer centres accredited by NCCN are audited each year. The benefit of L-Dex is it is can monitor lymphoedema in a clinical setting in a rapid, objective and simple way whereas other methods such as using tape measurements or water displacement can take 10-20 minutes to complete and are difficult to incorporate into a standard consultation. In contrast, L-Dex readings take 1-2 minutes. Hence, earlier interventions can be made to prevent progression of lymphoedema disease.

Morgans believes the guidelines are a development which should drive greater adoption of the Impedimed technology. The company has engaged six large cancer care centres which will pilot the technology ahead of its full launch in the US later this year. The programs include integrating a prospective surveillance model for the early detection of cancer-related lymphoedema. The broker maintains an Add rating on the stock with a High Conviction listing.

The company is considered well funded, with $36m in cash reserves. Any downside risk relates to the rate at which sales can be ramped up over the next 12 months.The broker expects the company to break even by FY17 and retains a $1.70 target. 
 

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