On Thursday, Profound Medical (TASE:PMCN) Corp. (NASDAQ:PROF) maintained its Buy rating and $17.00 price target from Lake Street Capital Markets.
"Although 2024 was in some ways a transition year for Profound and the stock mostly treaded water despite some highly favorable news, we would be hard pressed to paint a better setup for the company in 2025," analysts at the firm said.
Profound Medical recently benefited from improved CMS reimbursement rates for its TULSA procedure, which as of Wednesday, are 25% higher than those for robotic radical prostatectomy, a common treatment for prostate cancer using the Intuitive Surgical (NASDAQ:ISRG) da Vinci (EPA:SGEF) robot.
The increased reimbursement is expected to enhance the financial viability of Profound's TULSA treatment. The first half of 2025 is anticipated to bring results from the CAPTAIN trial, a significant study comparing Profound's TULSA procedure with the traditional radical prostatectomy in treating prostate cancer. Early outcomes from the trial, particularly regarding side effects like erectile dysfunction and incontinence, are forecasted to favor TULSA, potentially influencing treatment decisions among patients and healthcare providers.
The partnership between Profound and Siemens (ETR:SIEGn) is set to launch the TULSA+ offering around mid-2025. This new product combines Profound's TULSA technology with Siemens' MAGNETOM Free.Max MRI, aiming to present an attractive solution to urology practices in terms of both form factor and price point. Lake Street Capital Markets expects that the pairing will prove to be a "killer app," significantly boosting Profound's market position.
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