Can you please give me your current assessment of Profound Medical?
I've held this stock for about five years. It peaked in 2021 at just over $35, and with the recent drop (due to yet another financing), it's down to about $10.66. I've listened to each earnings call, and it's been the same message for years now that widespread adoption of their non-surgical MRI guided prostate cancer/BPH treatment is just around the corner.
Their "First-time CPT code reimbursement for TULSA" is to be effective January 1, 2025, and they recently partnered with Siemens in a co-sales/marketing deal.
Is more patience (along with patients) warranted here, or is it more likely time to move on? Thanks, Brad
We've always seen PRN as a company with plenty of potential. It is very small, but growth has been coming in very high over the last few months. PRN recently sold shares at U$7.50 for total proceeds of U$35M in order to und the continued development and commercialization of the TULSA-PRO system and the Sonalleve system. The company has been very comfortable with issuing new shares so dillution is a risk here. Any positive regulatory approvals and steps towards ramping up commercilizations will send the stock higher but it remains very high risk. We think it's a hold right now. There will likely be other chances to buy and further equity issues down the road. Currently, it is a very hard stock to analyze, as it is all about what 'may' happen. Until we actually see sales ramp up it is difficult to quantify how successful it may be. Recent announcements have been positive, but it is important to note that this is a very slow moving industry. Hospitals/doctors are very reluctant to change. We think with recent developments, if one has held this long it is worth holding for 2025 to see how things further develop.