Binary events in healthcare can be key determinants of stock price performance. These can be especially relevant to investors seeking opportunity that is less correlated to the broader market. Case in point: Neovasc (NASDAQ:NVCN), whose shares are rising 14.5% in pre-market trading Friday.
Why the excitement? At the Transcatheter Valve Therapy (TVT) conference 2018, Anson Cheung, John Webb and colleagues at St. Paul’s Hospital in Vancouver, British Columbia performed a trans-apical (T/A), transcatheter mitral valve replacement procedure, deploying a 40mm Tiara TMVR in an 80-year-old patient with ischemic heart failure, severe degenerative and functional mitral valve disease, severe CAD (bypass surgery in 20 years ago), aortic disease (prior EVAR) and ejection fraction ~30%. The procedure was an unequivocal success.
Canaccord’s top analyst Jason Mills commented, “While both corporate and clinical KOLs continue to opine that transfemoral/transseptal delivery will ultimately win out in TMVR, successful procedures such as this one continue to shape our perspective on trans-apical TMVR, which we maintain could be a viable commercial success over the next 3-5 years, as the seemingly complicated, arduous pathway forward for trans-septal devices develops. We are optimistic about the TMVR market potential in general and continue to believe Neovasc’s Tiara will have a place in this market when it’s all said and done.”
“On the financing front, having received additional cash vis-à-vis investor-initiated exercise of Series C warrants of ~$12.3M, we calculate the firm has funds sufficient to fund expanding enrollment in Tiara through mid-2019 at least,” the analyst continued.
Bottom line: “We recommend investors consider NVCN at current trading levels, as we continue to believe the firm possesses a viable shot on goal in the large TMVR market opportunity.”
As such, Mills reiterates a Buy rating on Neovasc shares, with a price target of $0.10, which implies an upside of 163% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Mills has a yearly average return of 30.9% and a 78% success rate. Mills has a 58.9% average return when recommending NVCN, and is ranked #19 out of 4829 analysts.