On Friday, IceCure Medical (TASE:PMCN) Ltd. (NASDAQ:ICCM), a $45.59 million market cap medical device company, maintained its Buy rating and price target of $2.50, as recommended by H.C. Wainwright. According to InvestingPro analysis, the stock appears undervalued at its current trading level.
The reaffirmation came after IceCure Medical announced its third-quarter financial results for 2024 on November 26. The company reported total revenue of $0.7 million, which is a 102% year-over-year increase and matches the analyst's projection. The net loss reported was $4.2 million, or $0.08 per share, slightly exceeding the forecasted $3.7 million loss.
Throughout the first nine months of 2024, IceCure Medical saw a 36% increase in sales of its ProSense systems and disposable probes, totaling $2.3 million, up from $1.7 million during the same period in 2023. The company maintains a healthy gross profit margin of 43.67% and a strong current ratio of 2.67, indicating solid operational efficiency. This growth was attributed to robust sales in Europe, the U.S., Japan, and other Asian territories, though it was somewhat hampered by a decline in Chinese sales.
Management at IceCure Medical has expressed expectations for the U.S. Food and Drug Administration (FDA) to reach a final decision on the marketing authorization for the ProSense system in treating early-stage, low-risk breast cancer with endocrine therapy in the first quarter of 2025. The ProSense cryoablation procedure, which is minimally invasive, is believed to have the potential to supplant lumpectomy, the current standard of care, for an estimated 70,000 patients annually in the U.S.
Furthermore, IceCure Medical's partner in Japan, Terumo (TRUMY; not rated), is planning to seek regulatory approval for ProSense for the same breast cancer treatment in Japan in 2025. Additionally, IceCure Medical is set to present interim results from the ICESECRET trial, which involves the use of ProSense for the cryoablation of kidney cancer, in December 2024.
The company is optimistic about the system's prospects, anticipating that it will likely receive De Novo clearance early in 2025. For deeper insights into IceCure Medical's growth potential and financial health, InvestingPro subscribers can access comprehensive analysis, including 10+ additional ProTips and detailed financial metrics in our Pro Research Report.
In other recent news, iSecure Medical, a prominent player in the healthcare sector, has been making significant strides in the development of its ProSense system. The company believes that this innovative system will become an essential tool for various medical professionals and patients.
The Chief Financial Officer and Chief Operating Officer, Ronen Zimmerman, anticipates a boost in revenue trends following the FDA clearance for U.S. sales. Shay Labov, the Vice President of Regulatory and Quality Affairs, emphasized the importance of maintaining a close relationship with the FDA to ensure product safety and efficacy through effective post-marketing controls.
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