Citi sees promise in Alpha Tau Medical's radiation tech, starts with 'buy'

Alpha Tau Medical

04/04/2022 11:12

** Citi has a favorable view of medical device maker's
 DRTS.O  local radiation device, Alpha DaRT
    ** Initiates with 'buy/high risk' and PT of $21, 13.85%
premium to stock's last closing price
    ** Alpha DaRT is an alpha radiation-emitting medical device
designed to be inserted directly into a tumor
    ** Device is approved in Israel for Squamous cell carcinoma
and pivotal skin cancer study in U.S. is set to get underway in
next few months
    ** Brokerage sees 80% chance of trial's success and models
$600 mln-$650 mln in U.S. peak sales potential from this initial
indication alone
    ** Says Alpha DaRT is well-positioned to become a go-to
local radiation option for multiple tumor types not adequately
addressed by existing options
    ** Sees potential for upside to shares on success in initial
indication of Squamous cell carcinoma, and expects a steady
stream of data from other tumor studies to drive meaningful
upside over the next 12-18 months

 (Reporting by Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))