LONDON, March 2, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Rex Bionics.
Rex Bionics produces exoskeletons to assist the rehabilitation and improve the mobility of people with spinal cord injury (SCI) and other mobility impairments such as stroke and MS. Two variants of the device are available: Rex, which is intended for use in rehabilitation centres, and Rex P, which can be used in the home. Both devices are approved for sale in Europe and Australia, and Rex is available for rehab use in the US but FDA clearance is required for use in the home in the US.
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Rex Bionics is trading at a significant discount to its peers on EV/sales and a reverse DCF with 15% WACC and 3% terminal growth implies that annual sales need to grow to only 207 units by 2020 to justify the current share price. The market therefore seems to be factoring in a low probability of success. If clinical trials demonstrate that using Rex's devices represents a clear medical benefit and FDA clearance is obtained for the US personal market, it is likely that Rex's share price could re-rate closer to that of its peers. The personal use market is key to achieving significant shareholder return and therefore demonstrating sales through charities and from personal claim awards will also be a catalyst for share price upside.
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For more information please contact:
Tom Grady, Edison Investment Research, +44(0)20-3077-5767
Katherine Thompson, Edison Investment Research, +44(0)20-3077-5730
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