EBR Systems Inc.

EBR Details

Appointment Under Top Management: EBR Systems Inc. (ASX: EBR) is focused on the development of devices to treat patients with certain types of heart failure. As announced on 29 November 2021, the company announced the appointment of Michael Hendrickson as Chief Operating Officer (COO) and Steve Sandweg as Chief Commercial Officer (CCO), and the promotion of Madhuri Bhat to Chief Regulatory Officer (CRO).

Successful Listing on ASX:

• The securities of EBR have recently listed on ASX on 24 November 2021 after raising A$108.1 million and A$1.9 million from the initial public offering and a US private placement, respectively. The company has issued 101, 851, 851 CDIs at an offer price of A$1.08 per new CDI.
• The company would use these funds to finish its SOLVE clinical trial, pursue FDA approval as well as to support the commecialisation of the WiSE in the US and other markets.

H1FY21 Financial Summary:

• During the period, total operating expenses stood at ~US$10.23 million against ~US$13.61 million in the prior corresponding year.
• For the half year period ended 30 June 2021, the company recorded a net loss of ~US$15.90 million as compared to the loss of ~US$16.17 million in the pcp.
• At the end of H1FY21, the company had cash and cash equivalents of ~US$8.56 million against ~US$12.52 million as on 30 June 2020.

Net Losses (Source: Analysis by Kalkine Group)

Key Risks:

• Stiff Competition: The company operates in a very competitive environment, and the rising market share of competitors could pose an operational risk to the business.
• Regulatory Risk: EBR is exposed to a more complex regulatory environment; any failure in compliance could lead the business to fines, penalties, etc.

Outlook:

• The company believes that its WiSE technology platform has an initial addressable market of US$2.1 billion.
• For 2024 and beyond, the company would focus on increasing the use of WiSE beyond the initial target of Lead Failure and High-Risk Upgrade patients.

Stock Details: The shares of EBR opened at A$1.03 and made a high of A$1.095 on 24 November 2021. Considering the recent listing, absence of revenue, and risks associated with the business, we suggest investors to wait and watch the stock at the closing price of $1.030, down by ~1.905% as on 29 November 2021.

EBR Daily Technical Chart, Data Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings.

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