QT Vascular

QT Vascular: CS has an unrated rpt on the counter, where the house guides that QT Vascular believes that its 'Chocolate' brand of nitinol 'constraining structure' catheter is a breakthrough in design, and improves results in the treatment of blocked arteries. QTVC recently received clearance to sell the Chocolate PTCA in the US. QTVC reported 1QFY14 loss of US$9.2m despite a 340% jump in revenue. Management suggested it would like to attain a critical revenue mass before focusing on profitability. While QTVC is open to inorganic growth opportunities (especially in Europe), it did not deny the potential for QTVC itself being acquired. The prospectus states J&J (through a subsidiary) owns between 2.8% and 3.3% of QTVC. The company's product pipeline includes the Drug Coated Chocolate and the SILK PTA. Angioscore, a company earlier founded by the current CEO, has filed a patent infringement claim against QTVC, but the company believes that it has no merit.