SeeThruEquity Issues Valuation Update on BioSig Technologies, Inc. (OTCQB: BSGM)

Recent Buyouts in Space Highlight Compelling Valuation

NEW YORK, NY / ACCESSWIRE / April 25, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update note on BioSig Technologies, Inc. (OTCQB: BSGM).

The report is available here: BSGM April 2016 Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

Hansen acquired for $80 million and is a close comp for BioSig: Based in Mountain View, CA, Hanson Medical was the first company listed on our peer valuation analysis when we initiated coverage of BioSig on February 17, 2016, and while there is no perfect comp for BioSig, we do think the transaction is relevant and that it reiterates the strategic value in the space. Like BioSig, Hansen Medical is focused on achieving better patient outcomes for cardiac arrhythmia. Hansen’s intravascular robotics enable more accurate and controlled catheter placement in order to improve patient outcomes for cardiac arrhythmia and endovascular procedures with its flagship Magellan™ Robotic System. Clearly the company is well-aligned and potentially complementary with BioSig, whose Flagship PURE EP™ System is intended to improve outcomes for patients with complex cardiac arrhythmias through complex real-time analysis of electrical activity in the heart to better identify the cause and nature of arrhythmias to drastically improve the process of finding catheter ablation targets – areas of tissue to destroy that otherwise create a cardiac arrhythmia.

In the following table we examined a group of select transactions in the electrophysiology (EP) space, which demonstrates a pattern of consolidation by entrenched platers in order to maintain share and capture market opportunities in this strategically important $3.5 billion marketplace – a market projected by Global Industry Analysis to reach $5.5 billion by 2019E, with growth driven by the rising prevalence of cardiac arrhythmias.

Highlights from the note are as follows:

Hansen Medical to be acquired at 40% premium, representing a valuation of $80 million

On April 20, 2016, BioSig peer Hansen Medical, Inc. announced that it was being purchased by Auris Surgical Robotics for $4.00 per share, representing a total equity value of $80mn and a 39.6% premium to the prior day’s closing price of $2.86. In addition, certain significant stockholders of Hansen Medical have agreed to invest approximately $49 million into Auris contemporaneously with the closing of the transaction. Mountain View, CA-based Hanson Medical was the first company listed on our peer valuation analysis when we initiated coverage of BioSig on February 17, 2016. The company is focused on developing intravascular robotics that enable more accurate and controlled catheter placement in order to improve patient outcomes for cardiac arrhythmia and endovascular procedures with its flagship Magellan™ Robotic System. This is well-aligned and potentially complementary with BioSig, whose Flagship PURE EP™ System is intended to improve outcomes for patients with complex cardiac arrhythmias through complex real-time analysis of electrical activity in the heart to better identify the cause and nature of arrhythmias to drastically improve the process of finding catheter ablation targets – areas of tissue to destroy that otherwise create a cardiac arrhythmia.

Regulatory developments and upcoming industry events may offer continued support

Although not affecting BioSig directly at this time, since BioSig is a pre-revenue company, we note BioSig’s may be benefitting from a sector regulatory event. Indeed, the regulatory environment for medical device stocks recently received a boost with the two-year suspension of the 2.7% special medical device tax that had been included in “ObamaCare” – and there is a growing line of thought that the suspension will become a permanent repeal. We continue to see more positive industry catalysts ahead for BioSig. The company is preparing to present pre-clinical data and introduce / demonstrate the PURE EP to the industry and investors at the Heart Rhythm Society in May, which is one of the biggest events in the industry.

Maintain price target of $3.53 for BioSig

We have been encouraged by the progress made by BioSig since our initiation of coverage on February 17, 2016, and note that shares have risen by 51% since that time. The recent acquisition of peer company Hansen Medicine highlights a key point made in our initiation of BioSig, which is the strategic value in the space to larger medical device payers as well as the history of significant M&A. We continue to like BioSig and the opportunities it is targeting in the growing $3.5 billion electrophysiology (EP) market. We maintain our price target of $3.53 for BioSig, which , if achieved, represents potential upside of 130.7% from the recent price of $1.37 on March 23, 2016.

Please review important disclosures at www.seethruequity.com.

About BioSig Technologies, Inc.

BioSig Technologies is a medical device company that is developing a proprietary technology platform designed to improve the $3 billion electrophysiology (EP) marketplace1 (www.biosigtech.com). Led by a proven management team and a veteran, independent Board of Directors, Minneapolis-based BioSig Technologies is preparing to commercialize its PURE EP System.

PURE EP System is a surface electrocardiogram and intracardiac multichannel recording and analysis system designed to assist electrophysiologists in making clinical decisions in real-time by acquiring and displaying high-fidelity cardiac signal recordings and providing clarity of data which may be used to guide the EPs in identifying ablation targets — areas of tissue to treat that otherwise create a heart rhythm disturbance (arrhythmia).

Analysts forecast the global market for EP devices will grow at a 12.1 percent compound annual growth rate, from $2.5 billion in 2012 to $5.5 billion by 20191 — making it one of the fastest growing medical device segments. Just in the US, the number of Atrial Fibrillation (AF) and Ventricular Tachycardia (VT) arrhythmia ablations is forecast to grow at 10.5 percent from 2012 to 20172.

BioSig intends to seek FDA 510(k) clearance for the PURE EP System. The Company has achieved proof of concept validation through UCLA labs, and has performed pre-clinical studies at the Mayo Clinic in Minnesota. The Company is collaborating with several of the nation’s most prestigious cardiac arrhythmia centers including Texas Cardiac Arrhythmia Institute, UCLA Cardiac Arrhythmia Center, and Mayo Clinic.

1) Electrophysiology Devices Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019
2) HRI 2013 “Global Opportunities in Medical Devices & Diagnostics” report; triangulation of multiple sources; *AF includes left atrial tachycardia, left WPW, left atrial flutter.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

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Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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