HCW starts Pulse Biosciences at buy; PT $27

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H.C. Wainwright launched coverage of Pulse Biosciences (NASDAQ:PLSE) with a “buy” rating and price target of $27. The stock closed at $18.23 on Feb. 22.

Analyst Swayampakula Ramakanth writes that his recommendation is based on a positive outlook for Pulse’s lead dermatology product, CellFX, and long-term potential of its proprietary Nano-Pulse Stimulation (NPS) technology. Both technologies use non-thermal, nanosecond electric pulses to kill target cells without damaging the surrounding tissue. CellFX is being developed for benign skin lesions, while NPS is being developed for malignant lesions.

The company is planning to file a 510(k) application for CellFX with the FDA in the first quarter of 2019, and “we expect the device to launch for the aesthetic treatment of seborrheic keratosis (SK) and sebaceous hyperplasia (SH), two common benign skin lesions, in the third quarter of 2019,” Mr. Ramakanth said.

SK and SH are two of the largest indications in the fast growing multi-billion dollar aesthetic dermatology market, with a prevalence in the U.S. of 83 million and three million people, respectively. “We believe the market for these two indications could exceed $3-billion in the U.S. by 2030,” he added.

Abby Hardy