On Friday, Canaccord Genuity updated its assessment of TriSalus Life Sciences, Inc. (NASDAQ:TLSI), shares, reducing the price target to $11.00 from the previous $12.00, while still upholding a Buy rating on the stock. The adjustment follows TriSalus' third-quarter revenue report of $7.3 million, which was in close alignment with Canaccord Genuity's projection of $7.2 million and slightly below the consensus estimate of $7.4 million.
The company has reaffirmed its fiscal year 2024 guidance, anticipating over 50% revenue growth and targeting between $28 million and $30 million. For fiscal year 2025, TriSalus' management has provided guidance suggesting a continuation of 50%+ revenue growth, coupled with a 20% reduction in operating expenses.
The management team is optimistic about the company's prospects, projecting it to be EBITDA positive throughout FY25 and to achieve positive free cash flow in the second half of the year.
These financial goals are considered crucial given the revised timelines for the data release of the PERIO-03 study. The PERIO-03 trial, which is focused on advanced pancreatic cancer, has been delayed until mid-2025 after the decision to enroll three additional patients in the fourth quarter of 2024. TriSalus is considering partnering for the development of PERIO-01 while awaiting the PERIO-03 outcomes.
In addition to the financial updates, TriSalus announced the launch of the TriNav Large system, a medical device expected to address 30% more cases than its predecessor. The larger-sized system (3.5MM – 5.0MM) is anticipated by physicians based on prior research.
Despite the uncertainty surrounding the future of Nelitolimod, an internal drug development project, due to the extended timeline, the company views any progression as a potential bonus.
The firm's statement highlighted TriSalus' solid foundation in the medical device sector, with a commercial presence and upcoming catalysts such as new product launches and clinical data from studies like DELIVER and PROTECT. In light of these factors, Canaccord Genuity reaffirmed its Buy rating but adjusted the price target to reflect the removal of a $1 component previously attributed to Nelitolimod.
In other recent news, TriSalus Life Sciences has been making significant strides in the medical technology sector. The company has received multiple positive analyst ratings, including a Buy rating from Roth/MKM with a price target of $11.00, highlighting the potential of TriSalus's innovative TriNav catheter and Pressure Enabled Drug Delivery (PEDD) technology.
Northland also initiated coverage with an Outperform rating, citing the TriNav system's potential to become the standard of care for certain medical procedures.
TriSalus has also been working on expanding its platform through the integration of the TriNav catheter with a proprietary TL-9 antagonist, currently undergoing phase 1 evaluation. The company's revenue is annualizing at approximately $30 million with a compound annual growth rate of 40-50%, and it has secured a $50 million credit facility with healthcare investment firm OrbiMed.
Furthermore, Oppenheimer initiated coverage with an Outperform rating, emphasizing the company's potential in liver cancer treatment. The company has also announced the appointment of Dr. Riad Salem, a renowned expert in interventional radiology, to its Scientific Advisory Board and the addition of Liselotte Hyveled, a veteran in pharmaceutical research and development, to its Board of Directors.
These are just a few of the recent developments that indicate the company's potential for growth and strategic initiatives in the oncology sector.
InvestingPro Insights
TriSalus Life Sciences, Inc. (NASDAQ:TLSI) presents a mixed financial picture according to recent InvestingPro data. The company's revenue growth is noteworthy, with a 67.75% increase over the last twelve months as of Q2 2024, aligning with management's guidance of over 50% revenue growth for fiscal year 2024. This robust growth is complemented by an impressive gross profit margin of 87.65%, which InvestingPro Tips highlight as one of the company's strengths.
However, investors should be aware of some challenges. An InvestingPro Tip indicates that TriSalus is quickly burning through cash, which is reflected in the negative operating income of -$52.45 million over the last twelve months. This aligns with the article's mention of the company's focus on becoming EBITDA positive in FY25 and achieving positive free cash flow in the second half of that year.
The stock's performance has been volatile, with InvestingPro data showing a significant 57.29% decline over the past six months. This decline may present an opportunity for investors who believe in the company's long-term potential, especially considering the upcoming catalysts mentioned in the article, such as new product launches and clinical data from studies.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for TriSalus Life Sciences, providing a more comprehensive view of the company's financial health and market position.
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