MEDIAN TECHNOLOGIES initiation of coverage BUY, EUR40 Best served Median-rare

We are initiating Median Technologies with a BUY rating and a TP EUR40 which represents an upside of over 200%. Recent publication of a rich and positive newsflow during the last 6-12 months contributed to the validation of the company’s business model along with its positioning. In addition, we think the upcoming newsflow in the next 6-12 months will give Median the ability to ride the storm in this turbulent market. These events could lead to a re-rating of shares and close the gap between our TP and the current stock price, which has not yet fully appreciated the company’s true potential.
Business model validated twice.

• Median is a diagnostic company specialized in the computer-assisted processing of medical imaging using artificial intelligence to diagnose and monitor different cancers and metabolic diseases. Median's business model is based on two highly synergistic activities including 1) revenue generating iCRO geared for clinical trial use, and 2) iBiopsy designed for early-stage diagnostics, which has great potential and strong proof of concept. Partnerships signed with major academic groups such as AP-HP and UC San Diego, as well as with several Big Pharmas and CROs, whose names have not been disclosed, provide important external validation, particularly in early cancer detection.

A future cancer and chronic disease agnostic software tailored for early-stage mass detection.

• While we expect a gradual ramp-up of the iCRO top-line sales, our attention is focused on iBiopsy as the latter has demonstrated stronger fundamental criteria compared to competitors in terms of specificity and sensitivity. As such, the software distinguishes itself by its ability to offer a simple integration to the current standard of care and patient-doctor workflow, which gives it an edge in early disease detection, and monitoring over American giants comparables, namely Exact Sciences, Guardant Health, and Grail (Illumina).

A technology with strategic opportunities for information technology (IT) companies.

• Besides being an AI-driven image-service provider to the healthcare ecosystem, we strongly believe Median’s technology has the potential to render its expertise attractive to IT companies such as Microsoft, Google, or major imaging providers through its AI know-how and cloud management, thus creating an additional and lucrative source of revenue.

Initiating at BUY with a TP of EUR40.

• Median’s fast development roadmap provides investors with rich near-term catalysts and long-term ROI with limited downside risks. In a bull-case scenario, we foresee an upside of 400% vs a downside of 38% in the case of a bearish outcome. We also believe that the market will soon integrate this upside to fully appreciate the sheer prowess of the iBiopsy platform an thus reduce the valuation gap relative to liquid biopsy companies. The main risk to our TP resides in delays in regulatory checkpoints that could postpone market entry of Median’s products on the market. Furthermore, failure to achieve attractive and quick reimbursement could see slower than expected acceptance of technology and delay in rollout of iBiopsy products.