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ClearPoint Neuro: Becoming The Neurosurgical Platform Of Choice

Oct. 01, 2021 5:38 PM ETClearPoint Neuro, Inc. (CLPT)16 Comments
Tan Jun Hao profile picture
Tan Jun Hao


  • ClearPoint provides a complete navigation system that enables neurosurgeons to perform minimally invasive procedures under a real-time guidance.
  • Once the full portfolio of products is released, the company is poised to grow even faster as their platform is aimed to solve a range of neurosurgical needs and penetrate into the OR market, where >90% of procedures take place.
  • With 35 existing partners, the chances for multiple successful commercialization is high.

Modern operating room in a hospital generated digitally
alvarez/E+ via Getty Images

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This article was written by

Tan Jun Hao profile picture

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CLPT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (16)

Great article!

If you choose to participate in another earnings call I would suggest you practice your questions ahead of time. Your connection was awful and you were breathing heavily into the phone. Please do not ask questions that were already asked or covered during the prepared remarks by Joe or any other CEO(as you did). Sincerely, CLPT investors
davenchop profile picture
volume today.... lots of volume... interesting
DTF Capital profile picture
Excellent write-up. Congrats on your first one.

Difficult not to like the product, how would you rate the management's credibility and execution so far? How likely will the platform be used for other indications? What portion of the revenue do you think will be recurring? I am just starting to learn more about this company and am keen to learn a bit more. Thank you.
Tan Jun Hao profile picture
@DTF Capital Hey, thank you for the comment.

On execution: I think Joe Burnett and the team have been pretty aggressive in pushing out its portfolio of products that are only going to come in from FY2022 and beyond. And there are a lot of pharma partners that are coming on board due to the value proposition of CLPT. So I would say, they have been executing well so far.

Using it for other indicators: I strongly believe yes, and over time, we should start to see more partners getting onboarded and solving different diseases. That's the power of the platform.

Which portion is recurring: The disposables revenue, which consists of FNN and B&DD revenue. Partners need to purchase disposables, such as the Smartframe cannula in order to perform surgeries. You should see that FNN and B&DD revenue makes up a big % of its total revenue.

Hope this helps.
Well detailed and thoughtful analysis. Thank you. Who are the competitors in this space? Seems to me that clpt is more or less unique and as such applying any sort of valuation metrics is a nice guideline but perhaps less relevant.
Tan Jun Hao profile picture
@WealthyMule Hi, always happy to have someone picking up my blindspot. At the moment, I will say no. ClearPoint products are directed towards solving neurological disorders, which today, do not have any treatment. They have positioned themselves to be that go-to-delivery solutions for their partners. Yes, there are peers such as Medtronic providing similar products, such as Laser Ablation probes, robotic system, but they are in a different field, solving different diseases. But I'm happy to hear more of your thoughts, because there may be something that I have missed out. And what do you mean valuation metrics is perhaps less relevant? Looking forward to your reply! 😊
@Tan Jun Hao Just to be clear I really enjoyed reading the piece and I thought it was well researched and detailed, so thank you for spending the time doing diligence. I agree with your point that there are no good peers or competitors for them in a lot of areas, so they have the first mover advantage. So from a valuation perspective, its the current sales/cash flows metrics + the value of the platform that is unique. And its hard to say what is the value of the platform - if anything its likely (much) bigger than the entire market cap today. My concern with this company is how long they remain independent - I hope they don't sell too soon. My comment was not meant to be critical, much appreciate the article.
Tan Jun Hao profile picture
@WealthyMule Sure, and i'm glad this article has benefitted you.
Growth Stock Prospector profile picture
Great article. So much possible upside. No dilution risk either with 60M+ cash. Long CLPT!
@Growth Stock Prospector they don’t need to raise capital right now but their share count grows pretty steadily due to stock option grants.
Their main competitor is Medtronic and they will not be easy to dethrone.
That said, this company has very large upside if they execute. The downside is huge as well due to the lofty valuation. I recently bought a small position on the pullback but won’t make it a large position yet. If interest rates rise in a meaningful way or the market takes a tumble this stock will get crushed, more so than others. If that happens I would consider buying a lot more. For now, a small position it will remain.
Tan Jun Hao profile picture
@Growth Stock Prospector Hey, thanks for sharing your thoughts. It's also equally critical to note that shares has been heavily diluted in the past due to capital raise, but I believe Joe is a smart allocator and he knows what to do with the money. That said, @@JB5678 has made a good point, valuation is heavily priced in at the moment - due to power of its platform, and chance of multiple successful commercialization. If the management do executes well and more partner goes commercialized, valuation can look cheap in the long term.
@JB5678 How's your meme stock going, bud?
tom117 profile picture
Thank you for your article! +1 subscriber!
Tan Jun Hao profile picture
@tom117 Hey Tom, I'm glad this article has helped you. Thank you for the support! More to come, and meanwhile, stay safe.
ralphpal profile picture
I hope so
Tan Jun Hao profile picture
@ralphpal hey sorry, do you want to say something?
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