Leerink Reaffirms Neovasc (NVCN) at 'Outperform' Amid Boston Scientific Deal
The firm commented on Friday:
NVCN shares are reacting positively to an announcement this morning that BSX [OP] is acquiring tissue manufacturing assets as well as 15% stake in the company for $75M. With this $75M -- coupled with the $25M in cash on hand at the end of September -- we believe NVCN significantly improves its ability to continue to operate regardless of the outcome of ongoing litigation. Though risk certainly still exists, we now believe the likelihood that NVCN can continue to operate has substantially increased. NVCN is currently in the process of seeking a stay of the ~$91M in total damages to EW [OP] /CardiAQ in order to pursue an appeal, and we should gain more clarity on the pathway forward in the coming weeks. Once investors have clarity that NVCN can manage through ongoing litigation -- either via a stay and ultimate appeal or successfully meeting its financial obligations with now over $95M in cash -- we believe NVCN shares should move meaningfully higher given Tiara's status as a front runner in the race to a first-to-market TMVR (Transcatheter Mitral Valve Replacement) device in an addressable market that we peg at ~$9B.