Needham sees promise in RxSight's intraocular lens, starts with 'buy'

RxSight

08/04/2022 12:14

** Needham says it believes ophthalmic medical device co's
 RXST.O  intraocular lens (IOL) for use after cataract surgery
can result in better patient outcomes
    ** Initiates coverage with "buy" rating and PT of $18, a
33.2% premium to stock's last closing price
    ** Brokerage says in a pivotal trial, 70.1% of patients
receiving RXST's lens achieved 20/20 vision, while Alcon's
Acrysof Toric and Johnson & Johnson's  JNJ.N  Tecnis Toric IOLS
resulted in 20/20 in 38.4% and 43.6% patients, respectively
    ** Better visual outcomes could drive adoption despite
incremental capital equipment required - Needham
    ** Says co's lens could be appropriate for up to ~20% of
cataract patient population vs RXST's 2021 U.S. market share of
~0.7%
    ** Believes shares are attractively valued considering
RXST's growth profile
    ** Stock up ~20% YTD

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