First sale of Ikoniscope20 including reagents
Ikonisys has announced the first sale of its Ikoniscope20 microscope solution together with reagents. The sale is, in our view, a first proof that the commercialization strategy of migrating existing users of Ikonisys' former Ikoniscope Gen1 platform into users of the state-of-art Ikoniscope20 technology is correctly chosen and being implemented. With the purchase, the buyer, “Comprehensive Urology”, Michigan’s leading urology group with more than 50 urologists located throughout southeast Michigan, will upgrade its system and also utilize the optimized reagents provided by Ikonisys to perform bladder cancer molecular diagnosis based on diagnostic fluorescence in situ hybridisation (FISH) applications.
Compared to the first generation, of which the company has shipped 46 units (40 of them in the US), the Ikoniscope20 is not only smaller (comparable to a microwave versus a refrigerator-sized unit) and lighter (about 50 kg versus 400 kg of the first generation), but also faster and more versatile. The Ikoniscope20 microscope enables fully automated detection, classification, and quantification of rare and very rare cells in tissues and biological fluids. None of the larger competitors has, in our view, currently achieved such a high level of automation as Ikonisys.
With the launch of the Ikoniscope20, product sales including reagents will play a far greater role in the future. In this context, the conversion of software sales to a SaaS model, and the entry into probe sales have, according to our estimates, laid the foundations for increasing sales to EUR 35.7m by 2026e, corresponding to an expected CAGR 2021-26e of 138.3%, and for reaching operating profitability by 2024e.
We expect the sale to one of Ikonisys’ long-term customers and key opinion leaders to pave way for further sales and accelerate the company’s commercial activities in North America. Based on our three-stage discounted cash flow entity model, which we consider the primary valuation method for the Ikonisys shares, we confirm our 24-months price target of EUR 6.90 per share and our Buy rating for the shares of Ikonisys SA.
Founded in 2010, Sphene Capital is a German based pure-play research house offering state-of-the-art research and evaluation services to European small- and mid-caps by avoiding typical conflict of interests of traditional investment banks.
As a general rule, analysts of Sphene Capital strive to understand companies better than any other analyst or investor before publishing their initiation reports. Therefore, the comprehensive initiation research reports comprise of 50-80 pages, including an extensive analysis of the value chain of the IPO candidate, its unique selling proposition, an elaborate analysis of suppliers and clients, a thorough SWOT analysis, a commercial due diligence (i. e. market and competitive analysis), an integrated financial forecast model and a profound company valuation (both DCF methodology and peer group multiples). Before publication, each of Sphene Capital’s research report will be double-checked by a fellow research colleague (“Four-eyes-principle”), ensuring highest quality and avoiding careless mistakes.
After initiation of research coverage, Sphene Capital publishes regular updates of 12-30 pages following relevant news flow from the issuer or major peers, f. ex. after acquisitions or after publication of quarterly results.
Due to Sphene Capital’s extensive experience in equity and bond research, the team has established longstanding contacts to all relevant market players, i. e. institutional investors, family offices and high net-worth individuals as well as journalists. To each of these groups, Sphene Capital’s research analysts have regular contacts during analyst and management roadshows or via daily phone calls. Finally, analysts publish articles in selected stock markets magazines and websites in which the analysts help issuers to improve their popularity on the German capital markets.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.