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  • HC Andersen Capital: NeoDynamics – Comissioned Equity Research – Full commercialization in the US market

HC Andersen Capital: NeoDynamics – Comissioned Equity Research – Full commercialization in the US market

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Read the analysis here.

NeoDynamic's ultrasound-guided biopsy technology NeoNavia® addresses an unmet need in the diagnosis of breast cancer, the most prevalent female cancer type. The breast cancer diagnostic market is expected to be a USD 1.7bn market worldwide by 2025.

Following an FDA approval of NeoNavia®, the primary value driver and focus for NeoDynamics is successful commercialization in the US market, where NeoDynamics is launching NeoNavia® with the FlexiPulse® during 2023.

As a needle ultrasound-guided biopsy, NeoNavia® competes in the premium segment of the breast biopsymarket, which allows NeoDynamics to price and compete based on clinical added benefits as opposed to cost competition.

Based on NeoDynamics’ expectations and assuming different levels of US market share and pricing etc.(see assumptions p. 8-9) our DCF-model indicates that the current market valuation of NeoDynamics implicitly reflects less than 10% of the value potential of a US launch in 2023 and a successful commercialization in the following years (medium market share scenario).

NeoDynamics is a Swedish medical device company listed on the NASDAQ First North Growth Market since May 2022. The company has previously been listed on the Spotlight Stock Market since 2018. NeoDynamics’ core product is a newly developed biopsy system, NeoNavia®. The biopsy system is based on patented ultrasound pulse technology, developed from research carried out at the Karolinska Institute in Sweden. NeoNavia® has gained FDA marketing approval in the US (September 2022) and holds a CE mark in Europe. NeoNavia®’s target lead indication is ultrasound-assisted breast biopsies and axillary lymph node biopsies, and the company is positioned to introduce needle biopsies to the axillary market, which is currently dominated by invasive surgical procedures. In addition, NeoDynamics looks to expand into biopsies in the prostate, thyroid, liver, and other hard to reach areas (these potential markets are not included in the valuation scenarios later in the report). In Europe, NeoDynamics is currently in use in 30+ clinics. NeoDynamics is involved in two development projects: one with Szafran Biopsy AB for skin biopsies, and one fully in-house biomarker project as an add-on to the NeoNavia® system.

This is a press release from HC ANDERSEN CAPITAL https://hcandersencapital.dk.

Disclaimer: This report by HC Andersen Capital is commissioned by NeoDynamics, and HC Andersen Capital receives payment from NeoDynamics for a Digital IR/Corporate Visibility subscription agreement. The authors of the report, Henrik Ekman, Oliver Bronze, and Teddy Sun, have no ownership of NeoDynamics. This is not a piece of advice to buy, not to buy, sell, or not to sell shares. The material has been read by the company before publication. HC Andersen Capital assumes no responsibility for the correctness of the contents of the material. However, the information is assessed by HC Andersen Capital to be based on reliable sources. This report by HC Andersen Capital provides information about the company such as financial estimates, risk factors, market drivers, market growth, and valuation perspectives based on well-established valuation methodologies such as multiples, peer comparisons, and DCF-models. In this report, HC Andersen Capital provides no recommendations, and investors must take their own investment decisions. The report may not be distributed in any country where distribution by any laws are prohibited.

Claus Thestrup, CEO Sweden