The Investing News Network provides an overview of four small medical device companies that may have interesting paths ahead of them for the remainder of 2018.
2018 is more than halfway done, and the Investing News Network is taking a look at four small medical device companies that may have interesting paths ahead of them.
Investors are always on the lookout for new opportunities, and with the rapid development of the medical device sector it’s key to get ahead of the herd with new options.
The companies listed below have a variety of potential developments ahead, from upcoming trials to approvals and other developments. Stocks are listed in alphabetical order; if you think we missed a small medical device company that should be included on this list, please let us know in the comments.
1. Helius Medical Technologies (TSX:HSM,NASDAQ:HSDT)
Market cap: C$302.79 million; share price: C$12.88
Throughout 2017 Helius Medical Technologies saw a positive stream of news that helped its share price increase over 65 percent. But in 2018 the company has had some steep price increases and drop offs. At the time of publication it was down 16 percent year-to-date.
The company has a focus on unique, non-invasive platform technologies, and is working to expand treatment options for patients by amplifying the brain’s ability to heal itself. Specifically, it is looking to help patients affected by neurological symptoms caused by disease or trauma.
Clearance from the US Food and Drug Administration (FDA) for the company’s Portable Neuromodulation Stimulator medical device could prove to be a major catalyst in 2018. Helius released an update in mid-June stating that it now expects to “submit [its] request for de novo classification and 510(k) clearance in the third quarter of 2018.”
2. RepliCel Life Sciences (TSXV:RP)
Market cap: C$9.03 million; share price: C$0.39
RepliCel Life Sciences is second on our list of small medical device companies. The firm is a regenerative medicine company that’s developing autologous cell therapies to treat conditions linked to a deficit of healthy cells required for normal healing and function.
The company’s RCT-01, RCS-01 and RCH-01 cell therapies are designed to treat chronic tendinosis, UV-damaged or aged skin and pattern baldness. RepliCel is also developing a proprietary, next-generation injection device for delivery of its RCH-01 and RCS-01 products. The company’s share price spiked in July, but has since fallen from that point.
At the end of 2017, CEO Lee Buckler spoke about RepliCel’s injection device, which is in the market launch phase. “In the longer term, we are excited about this dermal injector as an integral companion to the cell therapy that we are developing for aging and sun-damaged skin as well,” Buckler said in an interview. The company’s other products are currently at earlier stages of development.
3. TransEnterix (NYSE:TRXC)
Market cap: US$1.18 billion; share price: US$5.65
Investors are particularly excited about the potential for the surgical robotics market to become a dominant force in the medical device sector in 2018. One company making strides in that arena is TransEnterix, which earned the spotlight in 2017 after it obtained 510(k) clearance from the FDA for its Senhance Surgical Robotic System.
“Research shows there is a startling need to improve the ergonomic conditions for laparoscopic surgeons given the unique physical and cognitive ergonomic challenges they face in the OR,” Todd Pope, the company’s president and CEO, said at the end of the year.
While 2018 is only halfway over, the company continues to fare well — so far its share price is up a whopping 162 percent year-to-date. TransEnterix announced in its Q2 release that it has generated $6.4 million in total revenue thus far, and has received FDA approval for expanded uses for the Senhance Surgical Robotic System.
4. TSO3 (TSX:TOS)
Market cap: C$61.31 million; share price: C$0.66
Last on this list of small medical device companies is TSO3, a company focused on low-temperature sterilization systems. TSO3 says it has launched “the newest low temperature sterilizer on the market” — called the STERIZONE® VP4 Sterilizer, it is cleared in the US, Canada and Europe, and is designed to sterilize both common surgical tools and complex medical devices.
In 2017, TSO3’s share price reached some all-time highs, but this year it is down nearly 75 percent year-to-date. The company has faced criticism in the past for failing to compete with large companies with similar products. “VP4 trails its competitors’ offerings across sterilizable universe, technology UX, product maintenance and pricing,” says a report released last year.
Nevertheless, the company currently has a “strong buy” designation on TipRanks with an average price target from analysts of C$1.33. They clearly see potential for TSO3 to pull out of its current rut.
Would you invest in any of these small medical device companies? Tell us in the comments.
This is an updated version of an article originally published by the Investing News Network in 2016.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.