Rodman & Renshaw has initiated coverage of NeuroMetrix (NASDAQ:NURO) with a “buy” rating and 12-month price target of $4.50. The stock closed at $1.74 on Tuesday.
NeuroMetrix is a commercial-stage medical device company aimed at management of chronic intractable pain due to conditions such as diabetes, fibromyalgia and arthritis.
“In our view, the company’s Quell platform is differentiated from competitors in that it is a drug-free, non-invasive and wearable neuro-stimulation device that can provide systemic and effective pain relief, and can be worn during both daytime activities and throughout sleep at night,” writes analyst Raghuram Selvaraju.
Quell received FDA 510(k) approval in January 2016 and is the only available transcutaneous electrical nerve stimulation product FDA-cleared for use during sleep.
Quell also is a smart device with an automated calibration algorithm for optimal, personalized stimulation intensity, which can be controlled via a smartphone app with cloud data storage.
“In our view, the Quell products should constitute the main revenue growth driver for the foreseeable future,” Mr. Selvaraju added.
A 60-day post-marketing study in 88 subjects showed that 81% of subjects had an improvement in chronic pain management and health, and 67% reduced use of pain medications.
NeuroMetrix is marketing the device through multiple distribution channels and is expanding into major retail chain stores, such as Target, CVS and Walgreens. In June 2016, the company said that Quell was available in nearly 1,500 chain drug stores.