Some comments from H&Q (www.hamquist.com) on EVTI::|
EVT is developing the first less-invasive procedure for the repair of abdominal aortic aneurysms (AAAs) with
an estimated one-year lead over the nearest competitor, Medtronic.
A less-invasive approach to AAA repair offers at least a 50% reduction in death and complications, faster
recovery, and lower cost versus the traditional open procedure.
EVT has completed pivotal trials for the first two versions of the product, with excellent short-term results on
the first and data due on the second in May or June 1997.
EVT has received CE Mark approval, and is currently initiating full-scale launch in Europe.
Visibility on competition is high because barriers to entry are relatively high, with a minimum of four years
from concept to launch; two products are in U.S. clinical trials, but many others are on the drawing board.
EVT is clearly a takeover play; its new relationship with Guidant appears to indicate high interest from the
company, the major player with the greatest need for EVT's product.
Our 12-month price target is $15, and our 18-month target is $20 with value generated by greater visibility on
Pre-Market Approval (PMA) submission and EVT's lead to market.