BioTuesdays

Analysts start RxSight at buy

Analysts for BTIG and SVB Leerink launched coverage of RxSight (NASDAQ:RXST) with “buy” ratings and price targets of $28 and $20, respectively. The stock closed at $11.94 on Aug. 23.

RxSight has developed the Light Adjustable Lens, the first and only commercially available intraocular lens that allows physicians to customize and optimize refractive power and lens shape for patients following cataract surgery. 

“Physicians and patients no longer need to commit to a visual preference (near, intermediate, or far) preoperatively, as they can trial and titrate the lens power post-implantation,” writes analyst Ryan Zimmerman of BTIG.

Richard Newitter of SVB said that as the only post-operatively adjustable cataract surgery solution on the market, “RxSight’s light adjustable lens should be well-positioned to drive increased penetration into—and expansion of—an underpenetrated ‘premium intraocular lens’ category that is a roughly $1.4-billion/$450-million worldwide/U.S. and growing mid-teens with potential to double by 2026 [according to MarketScope].”

Mr. Newitter said RxSight is about two years into its commercialization effort and “we expect a steepening adoption trajectory as the sales/training organization scales, awareness for the technology builds, and product enhancements continue to rollout, including the ActivShield technology.’ 

Mr. Zimmerman said that not only does RxSight have first-mover advantage in this burgeoning area, but also the growing installed base of RxSight LDD systems will wed physicians to RxSight for the foreseeable future. “We believe that with product enhancements, new indications, and strong clinical outcomes, both physicians and patients will prefer RxSight’s Light Adjustable Lens over conventional intraocular lens technology”.