Beacon starts Profound Medical at buy; PT $3.10

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Beacon Securities initiated coverage of Profound Medical (TSXV:PRN) with a “buy” rating and 12-month price target of $3.10. The stock closed at $1 on Feb. 28.

“We believe Profound Medical is a company who is building off the positive developments started by such companies as Intuitive,” which revolutionized prostate surgery several years ago, writes analyst David Kideckel.

He said TULSA-PRO offers the “best-in-class treatment on the market today for the ablation of prostate tissue.” The technology combines MRI guidance and ultrasound energy to deliver thermal ablative therapy to the prostate gland delivered through the urethra.

TULSA-PRO is CE marked and is available for usage in select markets outside the U.S. “We expect U.S. approval in 2019, once the company’s Phase 2 pivotal trial data has been analyzed,” he added.

Profound’s second product, the Sonalleve MR-HIFU (high-intensity focused ultrasound), which it bought from Philips in July 2017, is an innovative therapeutic platform that combines real time MRI and thermometry with thermal ultrasound to enable precise and incision-free ablation of diseased tissue.

Like the TULSA-PRO, the Sonalleve is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases.