Stereotaxis - Japan Market Entry And Domestic Vdrive Sales Underway. Maintain Positive Thesis.
- Distribution agreement for Japan finally in place and imminent launch expands geographic reach of Company into 2nd largest healthcare market globally.
- Vdrive growth underway in US with 5 systems sold in 2H’2013. Next on list of expanding Vdrive devices should be V-Loop expanding addressable TAM by $60 million.
- Largest % of revenues from high-margin disposables among listed peers yet cheapest EV/sales valuation. Several peers garner >16X EV/Sales multiples which equates to $31/share price or higher for STXS.
- New management has renewed focus on innovation to deliver highest quality patient outcomes and specifically commented on potential “to improve cure rates achieved in complex ablations” on last call.
- Potential repurchase of Healthcare Royalty loan in November 2014 could return ~$3 million in Biosense Webster royalties to cash flows versus interest payment helping drive meaningful valuation recovery.