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TICKERS: VIVE

Firm Focused on Women's Health Posts 'Record' Sales of Treatment Device

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A company marketing a product designed to enhance women's sexual function announced preliminary financial results for Q4/17 that caught the attention of several analysts.

Viveve Medical Inc. (VIVE:NASDAQ), developer of the Geneveve treatment, which employs cryogen-cooled monopolar radiofrequency (CMRF) to counter vaginal changes that follow childbirth, described the preliminary results in a Jan. 4 press release.

According to the company's chief financial officer, Scott Durbin, "Viveve now has a commercial installed base of 444 systems worldwide, 80 of which were sold in the fourth quarter of 2017. Based on the momentum of our global commercialization efforts and proven benefits of our technology for both clinicians and patients, we project full year revenue for 2018 between $22 million and $24 million."

The company noted that it sold "80 Viveve Systems worldwide (57 in North America), approximately 2,600 disposable treatment tips and other ancillary consumables" in the last quarter of 2017. Revenue from those sales is "expected to be approximately $5.1 million, " the company stated, "representing a 25% increase over total revenue for the quarterly period ended September 30, 2017 and a 108% increase for the quarter year-over-year."

Sales for FY17 are expected to total $15.3 million, the company noted.

Commenting on the results in a Jan. 4 research note, Brian Marckx of Zacks Small-Cap Research found it "noteworthy" that "57 U.S. and 80 total placements would be respective records and ahead of the prior bests by 21% (vs 47 U.S. placements in Q3 2017) and 33% (vs 60 total placements, also in Q3 2017)."

Zacks "attributes the rapid growth in console sales to a combination of recent expansion of both the U.S. direct sales force as well as the international distribution footprint," Marckx stated. The analyst expects "incremental future growth of the sales force, combined with additional and recent clinical data supporting the efficacy and safety of Viveve treatment. . .to further catalyze growth of U.S. sales."

In December 2017, Viveve announced that a sub-analysis of data in its VIVEVE 1 trial, which showed "a single, non-ablative CMRF treatment significantly improves overall sexual function in women, with statistically significant and/or clinically important improvement in four of the six FSFI domains of Desire, Arousal, Lubrication, and Orgasm," was published in the Journal of Women's Health.

Zacks has a target price of $11 per share; currently, Viveve trades at around $5.02 per share.

In a Jan. 4 research note for Maxim Group, analyst Anthony Vendetti noted his firm "would continue to be buyers of VIVE after announcing preliminary 4Q17 revenue above our estimate—but slightly below consensus—and introducing 2018 guidance that was inline with expectations."

Maxim also expects that "publication of additional positive data" from Viveve's clinical study will "aid the company's sales and marketing efforts as it continues to build its installed base."

Vendetti believes a Phase 3 trial launch is "imminent," with data reading out in 2019. "In our opinion, the possibility of gaining an expanded FDA approval for the improvement of female sexual function represents a major growth opportunity for the company," the analyst wrote.

"VIVE is currently trading at 4.2x our 2018 EV/revenue estimate,” Vendetti noted, concluding that the Maxim price target of $11 per share "implies that shares should trade at 9.3x our 2018 EV/revenue estimate, which we believe is justified due to the company's defensible technological position and significant growth potential."

Jeffrey Cohen, an analyst with Ladenburg Thalmann, also considered Viveve's Q4 results in a Jan. 4 research note. "A total of 227 units were placed in 2017 with 160 in North America representing strong adoption in US centers," Cohen stated. "We expect the additional units placed in Q4 will drive increased utilization and overall treatment tip sales going forward." Ladenburg Thalmann has a $15 price target on Viveve shares.

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Viveve Medical. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article/interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Viveve Medical, a company mentioned in this article.

Additional disclosures

Disclosures from Zacks Small-Cap Research, Viveve Medical, Jan. 4, 2018

ANALYST DISCLOSURES

I, Brian Marckx, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.

INVESTMENT BANKING AND FEES FOR SERVICES

Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers of the securities covered in this report or article.

Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such non-investment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of this report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the number and types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by this issuer are available upon request.

Disclosures from Maxim Group, Viveve Medical, Jan. 4, 2017

I, Anthony Vendetti, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report.

The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors, including the firm’s total revenues, a portion of which is generated by investment banking activities.

Maxim Group makes a market in Viveve Medical, Inc.

Maxim Group managed/co-managed/acted as placement agent for an offering of the securities for Viveve Medical, Inc. in the past 12 months.

Maxim Group received compensation for investment banking services from Viveve Medical, Inc. in the past 12 months.

Maxim Group expects to receive or intends to seek compensation for investment banking services from Viveve Medical, Inc. in the next 3 months.

Disclosures from Ladenburg Thalmann, Viveve Medical Inc., Jan. 4, 2017

ANALYST CERTIFICATION: I, Jeffrey S. Cohen, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report, provided, however, that:

The research analyst primarily responsible for the preparation of this research report has or will receive compensation based upon various factors, including the volume of trading at the firm in the subject security, as well as the firm’s total revenues, a portion of which is generated by investment banking activities.

COMPANY SPECIFIC DISCLOSURES:

Ladenburg Thalmann & Co. Inc. makes a market in Viveve Medical, Inc.

Ladenburg Thalmann & Co. Inc. has managed or co-managed a public offering for Viveve Medical, Inc. within the past 12 months.

Ladenburg Thalmann & Co. Inc received compensation for investment banking services from Viveve Medical, Inc. within the past 12 months.

Ladenburg Thalmann & Co. Inc had an investment banking relationship with Viveve Medical, Inc. within the last 12 months.




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