Ticker Symbol: PINK (TSX Venture Exchange)
Shares Outstanding: 36,680,785
Market capitalization (02-26-2021): $159 million (CAD)
Total Addressable Market Size: $3.5 billion (WHO Projections for 2020)
Latest News From Perimeter Medical Imaging AI Inc
Top-Performing Medtech Sales Executive, Steve Sapot, Joins Perimeter Medical Imaging AI as Chief Commercial Officer
1) Backed by a multi-million dollar grant from the prestigious Cancer Prevention and Research Institute of Texas (CPRIT), Perimeter is revolutionizing cancer surgery by developing an artificial intelligence (AI) and machine learning “plug in” to augment their proprietary, innovative medical imaging system (which has 100x higher resolution than MRI). Perimeter is currently focused on reducing the debilitating re-surgery rate (approximately 1 in 4 surgeries) resulting from cancer cells left behind during initial tissue-preserving breast cancer surgery. Combined with a recent $10 million IPO and potential for “in the money” warrants exercise, the Company is confident it has enough financial firepower to bring its platform to market.
2) Although Perimeter’s initial focus is breast cancer surgery, this is a platform technology that could potentially be used in any cancer surgery where margin assessment or tissue preservation are important: prostate, liver, lung, kidney, pancreas, colorectal, skin, etc. The consumable portion of the breast cancer market alone is worth $794 million, while the Total Addressable Market in consumables exceeds $3.5 billion.
3) Unlike most emerging medical device companies, Perimeter is addressing an unmet medical need (i.e., NOT competing with technology already in the market from giants such as Medtronic, Stryker and Intuitive Surgical) with a technology that provides 8x to 100x improvement over existing imaging technologies (i.e., 100x higher resolution than MRI, and 8-10x higher resolution than ultrasound and X-Ray).
4) How AI can add value:
i) In August of 2019, Perimeter was the only medical imaging company (out of almost 30 applicants) to be awarded a company relocation product development research grant by CPRIT to develop the AI component of its platform. This US$7.4M grant was awarded after thorough due diligence by third parties evaluating the technology, business model, and intellectual property.
ii) Applying AI to medical imaging technologies is an exciting theme that is getting a lot of attention in Silicon Valley and globally. Perimeter owns this technology 100% and has total control over the only unique library of images capable of training the AI component, ImgAssist. This is a key differentiator and positions Perimeter ahead of competitors in medical imaging AI, giving it a uniquely valuable position.
iii) Perimeter’s proprietary AI can potentially accelerate the adoption of its platform by a wide variety of surgeons, beyond the approximately 1,000 centres of excellence and teaching hospitals to above 5,000 in the Western world.
5) From an investor standpoint Perimeter has an extraordinarily powerful “razor/razorblade” model in which a high margin consumable gets used with EVERY surgery. Based on an assumption of an average of 3 breast cancer surgeries per week per installed device in 1,000 hospitals, the consumable portion of the business could generate significant ongoing revenue, on top of one-time device sales and service contracts.
Including all cancer surgeries that could use Perimeter’s technology, and adding in the pre-operative biopsy and post-operative pathology markets, the complete TAM based on WHO data is approximately US$3.7B/year, just for the consumable.
6) Validation from Key Opinion Leaders (KOLs) and world-class cancer centers:
Dr. Frank Prendergast, former Director Emeritus of the Mayo Clinic’s Cancer Center (who sat on Eli Lilly’s Board for 22 years) joined Perimeter’s Board of Directors during the fall of 2017; and Dr. Ted James, the Chief of Breast Surgical Oncology at Harvard Medical School and the former President of the American Society of Breast Cancer Surgeons, has been a clinical advisor to Perimeter since 2014.
World-class centers that are actively collaborating with Perimeter or have previously participated in research include: MD Anderson (#1 cancer hospital); Memorial Sloan Kettering (#2 cancer hospital); Mayo Clinic (#3 cancer hospital); and Princess Margaret (#5 cancer hospital).
7) Perimeter has attracted world-class leadership.
Jeremy Sobotta recently joined as President and CFO in December of 2019, having been part of deploying over $4B in capital into M&A from the acquirer side while at Stryker. In fact, Jeremy was directly involved in multiple transactions in the breast cancer surgery market, including the US$200M acquisition of Invuity by Stryker in 2018. He brings an extraordinary breadth and depth of device-commercialization and M&A experience from category-leading medical device companies such as Stryker and Smith&Nephew.
Based on that experience, Jeremy sees Perimeter as a natural M&A fit for medtech companies, as evidenced by the amount of activity from strategic acquirers in women’s health and computer-assisted surgery.
Texas-based Tom Boon joined as CEO in April of 2020, with more than thirty years of commercial leadership experience in the diagnostic imaging space, including Eastman Kodak Medical, and 10 years as President of the division of Summit Industries that sells X-Ray equipment to hospitals and out-patient clinics.
The Board includes Dr. Frank Prendergast, former Chairman of the Mayo Clinic’s Cancer Center (discussed above) and Suzanne Foster, a current Cardinal Health executive, former Medtronic executive, and breast cancer survivor.
Dr. Tony Holler became Chairman of the Board in September of 2019. Tony has been founding CEO and/or Chairman of 3 publicly-traded companies that exceeded C$600M in market cap (including ID Medical which was bought by GSK for almost $2B, and CRH Medical which hit a C$900M market cap in 2017).
While still under the radar in the broader investing community, the Perimeter story is gaining traction.
The $3.5 billion market opportunity for Perimeter’s proprietary ultrahigh resolution imaging platform, OTIS, has attracted top tier management and financial backing from the prestigious CPRIT (Cancer Prevention and Research Institute of Texas).
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter/report/commentary piece/article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing.
Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. The information provided in this article is for informational purposes only and is not a recommendation to buy or sell any security. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. HotStocksReview.com is a website owned by Mountain Capital Corp (“Mountain”), (100 King Street West #5700, Toronto, Ontario). Mountain has been retained by Perimeter Medical Imaging AI Inc (“Perimeter”). to provide strategic digital media, marketing and data analytics services on behalf of the company for an undefined term. The agreement with Perimeter provides for a one-time cash-only payment. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.
By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Mountain Capital Corp, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
Please refer to our complete Disclaimer and Disclosure here