SeeThruEquity Issues Update on Nexeon MedSystems, Inc. (OTCQB: NXNN)

NEW YORK, NY / ACCESSWIRE / December 21, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Nexeon MedSystems, Inc. (OTCQB: NXNN).

The report is available here: NXNN December 2017 Update Note.

Based in Dallas, TX, Nexeon MedSystems, Inc. (OTCQB, NXNN, “Nexeon”) is a medical device company focused on innovative bioelectronics, which combines telecommunications technology and biotechnology. The company’s novel solutions are designed to improve the quality of life for patients suffering from debilitating neurological diseases. Nexeon’s flagship product is the Nexeon Neurostimulation System (NNS), a neurostimulation and recording platform for deep brain stimulation (DBS). NNS is an adaptable bioelectronics solution, which includes a suite of advanced implantable medical devices, supporting devices, and patient management software. NNS is supported by an expansive portfolio of over 100 patents and patent applications and approximately $40mn of investment. The company has 13 patents granted in the US and 68 patents granted in Europe.

Highlights from the report include:

We are updating our coverage of Nexeon following recent results and the transformative acquisition of Nexeon MedSystems Belgium SPRL (“NMB”) and its subsidiary Medi-Line, a well-established manufacturer of medical devices with a 25-year operating history and annual revenues of $7.2mn in the fiscal year ended March 31, 2017.

Highlights of recent activities include:

Nexeon expanded its European presence and significant scale with the acquisition of NMB and its Medi-Line subsidiary.
Medi-Line brings the company an established base of business as a medical device manufacturer, serving 34 medical device customers in 16 countries including multi-year contracts with Fortune 500 companies including GE Health.
Medi-Line owns state-of-the-art facilities, which can be used to manufacture its DBS devices, and generated $7.2mn in revenue in its fiscal year ending March 31, 2017.
The impact of NMB and Medi-Line was apparent in 3Q17 results, even with only one month of contribution, as Nexeon reported revenues of $1.04mn, versus $0.19mn in 3Q16.
Nexeon continues to advance its flagship NNS neurostimulation and recording platform targeting the $910mn global market for deep brain stimulation (DBS).
Pending the re-certification of its CE Mark, Nexeon management announced that it planned to be in a position to launch its DBS product for Parkinson’s disease line in Europe by the end of 2018 with commercial revenues expected from the DBS product by 2Q19. In the United States, the company is beginning the pre-approval process with the FDA and is targeting a pivotal clinical study for NNS to commence in 1Q19.

Increasing Price Target to $2.85

We are increasing our target following the acquisition of NMB and Medi-Line, as Nexeon should benefit from the increased scale, revenues, and relationships from this transaction. The price target implies a multiple of 8.0x 2018E revenues of $10.0mn and 3.8x 2019E revenues of $21.2mn.

Please review important disclosures on our website at www.seethruequity.com.

About Nexeon Medsystems, Inc.

Nexeon Medsystems, Inc. (OTCQB: NXNN) is a global medical device company focused on providing innovative neurostimulation products that improve the quality of life of patients suffering from debilitating neurological diseases. Nexeon has developed and commercialized a neurostimulation system that can be utilized to treat a variety of neurological diseases (www.nexeonmed.com).

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.

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SOURCE: SeeThruEquity

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