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Compumedics Share Price Up Big on FDA Approval (ASX: CMP)

By Lachlann Tierney, Monday, 17 February 2020

At time of writing, the share price of Compumedics Ltd [ASX:CMP] is up a significant 25.47% on important FDA approval. It’s been a remarkable 12 months for the stock, with the Compumedics share price rising a total of 154% during this period...

At time of writing, the share price of Compumedics Ltd [ASX:CMP] is up a significant 25.47%, trading at 87 cents.

It’s been a remarkable 12 months for the stock, with the Compumedics share price rising a total of 154% during this period:

Source: tradingview.com

We look at what triggered this move, which involves an important FDA clearance for Compumedics’ product.

Share price up on important FDA clearance

The market greeted the announcement today by pushing the Compumedics share price higher from the start of trading.

It’s an important step for the company as it allows for their Magnetoencephalography (MEG) device to be used in a routine clinical setting. This is mainly to be used for epilepsy and pre-surgical brain function mapping.

The company hopes now that their MEG product will grow to be as widely used as MRIs.

There are 36,000 MRIs installed globally, Compumedics notes.

The machines come in at a price point of between US$3 million and US$4 million.

So if the company is right — you can see that there is a potentially massive addressable market there.

Which goes a long way to explaining what happened to Compumedics’ share price today.

You can see what the product looks like below:

Source: newswire

Around 1.2% or 3.4 million people have epilepsy in the US.

In the short term, with such a sharp share price rise, it is conceivable Compumedics may pull back somewhat over the coming days, with investors taking profits after a strong 12-month period.

That being said, the medtech space continues to excite with other big-name winners including companies like PolyNovo Ltd [ASX:PNV].

If this field excites you, be sure to read our free report which picks out three small-caps that could take off this year. One of the picks merges AI with medical imaging — something particularly relevant considering today’s Compumedics announcement.

Regards,

Lachlann Tierney,
For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Lachlann Tierney

Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work was housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

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