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Summary
- Canadian medtech company Opsens announced a bought deal worth C$ 25 million last week.
- The company’s stock has bounced back from its 52-week low by 361 per cent.
- The medical stock has swelled over 35 per cent this year, with a one-year return of 104 per cent.
- The stock could grow further on the back of the company’s higher device sales. It is still 24 per cent down from its 52-week high.
For investors looking at income-generating options, Opsens Inc. (TSX:OPS) is an interesting company to watch. Stocks of this Quebec-based medical technology company swelled over 35 per cent this year, with a one-year return of 104 per cent.
The firm reported revenue of C$ 8.3 million, a rise of 19 per cent year-over-year (YoY) in its latest quarter. Since this announcement on January 13, the company’s stock has gained over 24 per cent.
Opsens is now all set to raise C$ 25 million through the stock market. The company entered an agreement with underwriters on February 5, led by Stifel GMP, on a bought deal of nearly 13.9 million common shares at C$ 1.80 to raise the amount.
Let us have a deeper look at this Toronto Stock Exchange (TSX)-listed emerging medical stock’s fundamentals:
Opsens Inc. (TSX:OPS)
The firm operates in interventional cardiology, providing an optical-based pressure guidewire for patients with coronary artery illness. Its current stock price is C$ 1.80 per share.
The C$ 162.7-million medical device and instrument producer’s shares are up more than 104 per cent in one year, with a price-to-cashflow ratio of 174.70, as per TMX data.
In 2021 alone, the stock has delivered over 35 per cent growth. In its Q1 FY21 results (ending on November 30, 2020), Opsens logged in sales worth C$ 5.3 million from devices like diastolic pressure ratio and coronary artery stenosis. This is up more than 23 per cent from C$ 4.3 million in Q1 FY20, primarily due to higher sales in Japan, North America, and European markets.
The company held cash and equivalents of C$ 12.2 million as of November 30, 2020, against C$ 10.9 million at the end of Q4 FY20.
The healthcare stock has rocketed over 361 per cent from its 52-week low of C$ 0.39.
However, the stock is still trading 24 per cent below its 52-week high of C$ 2.36. The stock could again touch its 52-week high in the coming weeks, guided by the rising demand for medical devices.
Opsens' One-Year Stock Performance Chart. (Source: Refinitiv, Thomson Reuters)
The company’s CEO and President Louis Laflamme stated that OptoWire, a medical system to measure coronary artery stenosis, made strong progress in the United States market in Q1 FY21. As per its profile on the TMX site, its OptoWire has been used to diagnose more than 100,000 patients worldwide till date.
