10 Mar 8 Reasons Why Misonix is a Good Stock for Your Portfolio!
Misonix, Inc. (NASDAQ: MSON) is building a highly differentiated surgical ultrasonic technology portfolio, to address and improve patient outcomes in neurosurgery, spine surgery, general surgery, orthopedic surgery, wound debridement, and craniomaxillofacial surgery. A world-class specialist in Ultrasonic technology, the Company’s products and services find their place in top hospitals in the U.S and across the globe.
Market Cap: $317.22M; Current Share Price: 18.24 USD
Data by YCharts
An Industry with Huge Potential for Growth
The Global Wound Debridement market is projected to reach USD 8.70 billion by 2028, growing at a CAGR of over 6 percent as per a report by Adroit market Research. The advanced state of medical services, rise in disposable income, increased awareness and early intervention, advances in technology, increasing geriatric population, higher incidences of diabetes, Ulcers, obesity and a growing number of surgical procedures are providing impetus to the growth in the industry.
Introduction of new technology such as tissue sealants, negative pressure therapy systems, and synthetic skin replacements are changing the landscape of the industry. Novel therapies such as nanotechnology, use of silver, electrical stimulation and electromagnetism are making wound care products more efficient and flexible than traditional wound care products. The focus is to create epithelialization by lessening the frequency of changing required, thereby fastening the healing process.
The Bone power tools market on the other hand is poised to grow at a CAGR of 5.50% from 2020 to 2027, according to a report by Data Bridge Market Research. The market growth will be driven by the increasing number of fractures, rising demand for minimally invasive surgeries and introduction of cutting-edge tools that promise ease of use and economic feasibility.
The Company is addressing a diverse market encompassing spine, neuro, orthopedic and wound debridement and hence has a huge scope for growth and expansion.
neXus – Best-In-Class Ultrasonic Generator
Nexus, the Company’s leading-edge ultrasonic surgical system, aims to address a large market opportunity in Spine Neuro Skull base, CMF/OMF/Plastics and Wound Debridement and is at the core of Misonix’s growth and expansion strategy. The system can be used for bone sculpting, surgical aspiration and wound debridement and has various accessories such as handpieces and disposables. The system can address surgical as well as regenerative procedural requirements and is targeting operations rooms, physician’s office and wound care centers.
Stavros Vizirgianakis, President and Chief Executive Officer of Misonix, commented,
“NeXus is a powerful, highly-integrated and easy-to-use system incorporating the latest advances in ultrasonic technology for increased efficiency and efficacy in treating procedures across spine surgery, neurosurgery, orthopedic surgery, laparoscopic surgery, and wound care. As we bring to market additional state-of-the-art ultrasonic handpieces and disposable offerings that leverage the neXus platform, we remain confident in our ability to strengthen and expand our leadership position in ultrasonic technology and to further diversify and grow our revenues.”
Approval by Health Canada
The product has recently received a Health Canada license, allowing it to commercialize the system along with its handpieces and disposable products, across Canada. The product is already approved in the E.U and other countries such as Latin America, Middle East, and Asia Pacific, including Australia and New Zealand.
Commenting on the approval, Mr. Stavros Vizirgianakis, opined,
“We are very pleased Health Canada has approved the use of neXus. This approval, along with our CE Mark certification, is further affirmation of our technology, and allows us to continue expanding our installed base for neXus outside the US. NeXus has seen very strong acceptance with healthcare practitioners domestically since its soft launch in late 2019, and we are confident that it will have similar success in markets such as Canada, where quality of care and patient outcomes are the primary focus of healthcare providers.
A Comprehensive Portfolio
SonicOne, an ultrasonic debridement process is bringing innovation to the physician’s office by focusing on the underlying bioburden and improving graft intake, thereby enhancing a physician’s debridement skills. The tool, which combines ultrasonic debridement with aspiration can also be used directly over sensitive structures without causing damages.
SonaStar offers versatility, reliability and safety in removing soft tissue with precision while preserving nerves, blood vessels and adjacent tissues.
Misonix’s Regenerative Product range consists of Theraskin, a Cryopreserved Human Skin Allograft that can be used for treatment of chronic wounds, in any part of the body, which are severe in nature and have exposed bone, tendon, joint capsule and muscle. Therion, another offering from the Company, leverages its proprietary champion process to create a dehydrated and terminally sterilized Chorioamniotic Allograft. Misonix also provides Theragenesis, a Bilayer Wound Matrix, intended for cellular invasion and capillary growth.
Robust Intellectual Property Rights Portfolio
The Company has built a robust intellectual property rights and trademarks portfolio, with over 122 patents issued worldwide, including 63 issued in the U.S and 59 issued internationally, besides 79 pending applications. Additionally, Misonix owns 10 US and 2 international trademarks as well.
In December 2020, the Company announced that the second largest U.S. Commercial payer would now cover TheraSkin for lower extremity dermal wounds, including venous leg ulcers (VLUs) and diabetic foot ulcers (DFUs). This coverage now adds another 32 million covered lives under TheraSkin, and is likely to go up further as the Company continues to pursue private payers as well.
Furthermore, the Company has an extensive sales network of over 150 people comprising Regional sales managers, representatives and clinical assistants and a global OUS distribution network in over 50 markets.
Strategic Acquisitions Adding Value to the Product Line
In September 2019, the Company had announced the completion of its acquisition of Solsys Medical and its leading cellular and tissue-based wound treatment, TheraSkin, in exchange for 5.7 million new shares valued at approximately $109 million on the date prior to closing along with assuming Solsys’ outstanding secured debt of approximately $24 million.
In September 2020, Misonix entered into an exclusive supply and distribution agreement with Gunze Limited for TheraGenesis® Bilayer Wound Matrix, to add value to its wound product portfolio consisting of traumatic, burn and reconstructive wound solutions.
Misonix’s revenues in Q2,2021 decreased by 7.4% to $18.3 million, compared to $19.7 million in the fiscal 2020 second quarter, as elective procedures have taken a backseat in view of the ongoing COVID-19 pandemic. The International revenue declined by 23.1%, while the Domestic wound revenue declined 16.2%. However domestic surgical revenue increased by 19.8 percent, driven mainly by the increased adoption of the nexus system. The Company is hopeful of returning to pre-pandemic topline growth rates and is working on refining its commercial and sales infrastructure to focus on market growth and increased adoption.
The Company had over $32 million in cash as on December 31, 2020, which it believes is sufficient to take care of near-term challenges and is optimistic that as vaccination drives gain momentum, procedural volumes would rebound to pre-pandemic levels.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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