In a June 11 research note, Ladenburg Thalmann analyst Jeffrey Cohen reported that the U.S. Food and Drug Administration approved Motus GI Holdings Inc.'s (MOTS:NASDAQ) second-generation Pure-Vu System, a device that helps facilitate the cleaning out of a poorly prepared colon during a colonoscopy.
"Achieving the approval milestone now positions the company well for full commercial launch, which we anticipate to begin in the near term," Cohen commented.
Compared to the first, this new version is 40% smaller, has a shorter set-up time of about 3.5 minutes versus 10 and is more mobile. It can be used with standard-sized colonoscopes and Motus GI's Slim Sleeve.
Cohen indicated that the company will continue to target the inpatient colonoscopy market. The improvements to the system and positive data from the REDUCE study should help facilitate product uptake.
Ladenburg expects Motus GI will initially convert practices using the first system to the second and then return to pursuing new accounts in late 2019. "We continue to be encouraged by the company's progress and anticipate strong commercial adoption in the near term," noted Cohen.
Motus GI's valuation should be comparable to that of other medical technology companies, Cohen purported. That valuation, Ladenburg's price target on the biotech, is $14.50 per share. The Buy-rated company is currently trading at around $3.42 per share.
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Disclosures from Ladenburg Thalmann, Motus GI Holdings, Inc., June 11, 2019
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 Motus GI Holdings, Inc.
