Sphere Medical
CE Mark expected shortly, launch preparations on track
Update | 21 July 2016
Sphere Medical
CE Mark expected shortly, launch preparations on track
Update | 21 July 2016
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Today’s trading update confirms Proxima 4’s CE Mark is expected soon and that preparations are on track for a first launch before year-end. A distributor for Italy has been appointed and we expect the European regions not addressed by the in-house sales team to be next on the agenda. Other pre-launch activities are also progressing well, including improved connectivity with electronic patient records, further major hospitals undergoing evaluations, and the Welsh manufacturing facility coming on stream. Our three-phase DCF-based model yields a valuation of £14.4m, equivalent to 10.2p per share, but we expect this to rise materially to reflect the risk reduction when the CE Mark is received.
Year-end: December | 2014 | 2015 | 2016E | 2017E |
Sales (£m) | 0.0 | 0.0 | 0.1 | 0.7 |
Adj. PBT (£m) | (5.9) | (6.0) | (5.8) | (5.5) |
Net Income (£m) | (5.3) | (5.5) | (5.4) | (5.1) |
Adj. EPS (p) | (9.9) | (5.3) | (3.7) | (3.5) |
Cash (£m) | 3.7 | 10.0 | 2.8 | 6.7 |
EBITDA (£m) | (5.8) | (6.0) | (5.8) | (5.2) |
Update
21 July 2016
Price (Sterling) | 8.75p |
Market Cap | £12.4m |
Enterprise Value (est.) | £5.4m |
Shares in issue | 141.8m |
12 month range | 7-20p |
Free float | 100% |
Primary exchange | AIM London |
Other exchanges | N/A |
Sector | Healthcare |
Company Code | SPHR.L |
Corporate client | Yes |
Company description
Sphere Medical develops and commercialises medical monitoring and diagnostic equipment. Its lead product, Proxima, provides near real-time analysis of blood gases, electrolytes, and metabolites at the patient’s bedside within critical care.
Analysts
Franc Gregori
fgregori@trinitydelta.org
+44 (0) 20 3637 5041
Mick Cooper PhD
mcooper@trinitydelta.org
+44 (0) 20 3637 5042
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