BTIG ups Helius Medical to buy; PT $14

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BTIG upgraded Helius Medical Technologies (NASDAQ:HSDT; TSX:HSM) to “buy” from “neutral,” with a $14 price target, after the company closed a $17.5-million stock offering. The stock closed at $8 on Nov. 19.

Analyst Dr. Sean Lavin writes that the offering alleviates Helius’ need for more capital before regulatory clearance. Helius now has enough cash to fund operations through at least mid-2019, and a much cheaper share price, he added.

Helius is focused on non-invasive platform technologies that amplify the brain’s ability to heal itself. The company’s first product in development is the Portable Neuromodulation Stimulator (PoNS).

“We think the recent announcement of clinical experience programs in the works at two prestigious U.S. neuro-rehab centers helps validate PoNS therapy,” Dr. Lavin said. Helius also has obtained Canadian regulatory clearance and is working towards commercialization in Canada.

“We see both as positives,” he said, adding that the next key catalyst is potential FDA clearance, likely during the next three-to-four months. “We maintain our view of an 85% chance of clearance, without more clinical work, as we feel the current data proves both benefit and safety,” Dr. Lavin said.

Stephen Kilmer