Report
Patrik Ling

Episurf Medical Strong long-term data The company today announced strong long-term follow-up data from the initial Episealer trial done in Sweden. We previously saw 24-month data; the patients have now been followed for 75 months and the data still looks

Episurf Medical (EPISB SS) - Strong long-term data The company today announced strong long-term follow-up data from the initial Episealer trial done in Sweden. We previously saw 24-month data; the patients have now been followed for 75 months and the data still looks excellent. This is important for Episurf Medical, as many doctors as well as payers request long-term follow-up for the implant system to be included in treatment algorithms and reimbursement systems. We reiterate our fair value of SEK1.3–3.9. Long-term follow-up from first 10 patients treated. Episurf Medical reported the long-term follow-up for the first 10 patients treated with the Episealer implant system. These patients have now been followed for at least 75 months, and the outcome is just as good as after the last follow-up at 24 months. The basic result is that the positive outcomes seen at the 24-month follow-up remain after 75 months. We believe the lead investigator is set to publish the findings in a journal during the autumn. Strong 24-month data maintaining efficacy at 75 months. As a reminder, the trial was conducted in 10 Swedish patients at three different clinics between December 2012 and November 2014. At the 24-month follow-up, the authors saw an improvement in all the scales used to assess the procedures. In particular, there was a statistically significant improvement in the VAS scale (p≤0.001), Tegner (p=0.034), KOOS subscale ADL (p=0.0048), sports and recreation (p=0.034), and quality of life (p=0.037). There were no revisions or implant migrations at 24 months. We have not yet had all the details (due to come in connection with publication of the findings), but believe the statement that all the positive findings seen at 24 months remain at 75 months indicates we should expect results at least as good when this trial is published. These patients lack treatment options. As these patients are too old for biological treatments and too young for full knee replacements (median age at surgery: 42.5 years), there are no real options for this group. However, in order to be included in reimbursement systems and treatment algorithms at different clinics, long-term follow-up of the outcomes is usually very important. Hence we see this announcement as very positive for the ongoing market introduction of the implant system. We reiterate our fair value of SEK1.3–3.9. (12 pages)
Underlying
Episurf Medical

Episurf Medical AB is a Sweden-based medical technology company. It is engaged in the development, manufacture and marketing of implants and surgical drilling templates used in the treatment of local cartilage damage in knee joints. The Company's product portfolio includes the Episealer, and individually customized implant used as a cartilage replacement for early-stage patients; and Epiguide, a drill guide designed to attach to the knee's surface, as well as related surgical tools. The personalization of implants and instruments is based on magnetic resonance imaging (MRI) and enables less invasive treatment. The process of ordering and creation of patient-specific implants and surgical instruments is covered by software suite, microiFidelity, comprising microiClinic, microiDesign and microiManufacture. The main shareholder of the Company is Serendipity Ixora Fund AB.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Patrik Ling

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