QT Vascular

QT Vascular: CIMB initiates Coverage with Add (High Conviction) and $0.64 TP. The house notes that the story of QT Vascular (QTV) has never been about its turnaround. It is about how a tried-and-tested technology is finding its way back to the physician’s table, after a breakthrough. It is about how one can participate in the growth of an early-stage medical company with a star-studded cast of expert investors. The exit of the-then drug-eluting stent market leader, Johnson & Johnson in 2011, and China’s Shandong Weigao in 2012 offers insights into how physicians and patients are re-thinking the use of invasive treatments for vascular disease. The successful penetration of its flagship Chocolate balloon in the US and GliderXtreme in Japan speaks volumes about QTV’s innovation and success in re-shaping a plain-vanilla minimally-invasive vascular device. Globally, QTV has forged distribution agreements with renowned distributors (Century Medical, Weigao and Cordis) to distribute its products. This is important, as a previous lack of scale and networks has been addressed, paving the way for an eventual lowering of distribution costs and a widening catchment of global hospitals/physicians.