QT Vascular struggles with sharp share price pullback

Find out why analysts are still surprisingly upbeat.

Catalist-listed healthcare firm QT Vascular has been struggling with a sharp share price pullback, with its share price declining by 20% in just a month.

According to CIMB, the current decline can be blamed on two issues, namely, the moratorium on pre-IPO investors that will expire by the end of October this year, and the perceived lack of newsflow coming out of the company.

The report notes that about 38.5m shares belonging to the pre-IPO investors are going to be released from the moratorium, which could trigger the sell-down of the stock on fears over an un-orderly exit by pre-IPO investors.
CIMB notes that QT Vascular is poised for growth as it continues to roll out new products and technologies, and that wily investors can benefit from the market’s misgivings.

“We spell out the issues surrounding QTV's share price weakness (which we deem excessive) as well as highlight the investment opportunity that is overlooked by investors at large. Despite the recent share price drop on moratorium lock-up expiry, we keep our Add call with the roll-out of coronary Chocolate products in the US and EU in late-3Q14 and regulatory approval in Japan for Chocolate products early next year being the catalysts,” stated CIMB. 

Here’s more from CIMB:

QTV’s key products, the Chocolate and Glider, were used/mentioned during some of the presentations/live demonstrations, which resulted in additional traffic at its exhibition booth during the course of the TCT conference.

We sat down for a 1-on-1 conversation with the abovementioned specialists as well as other renowned physicians from Israel, Germany and the UK.

QTV’s pipeline creations and staggered approvals for its products are key to transforming this early-stage incubator into a serious contender in the global vascular market, potentially leading to maiden profits and M&As with medical giants.