Brookline starts IceCure at buy; PT $5.65

IceCure New

Brookline Capital Markets initiated coverage of IceCure Medical (NASDAQ:ICCM) with a “buy” rating and price target of $5.65. The stock closed at $2.59 on Feb. 1.

IceCure is a commercial-stage medical device company developing and marketing cryoablation systems using liquid nitrogen for treating tumors. Cryoablation is a minimally invasive alternative to surgical intervention. 

The company’s lead product is the ProSense system, which has FDA breakthrough device designation for T1 (20mm or smaller) invasive breast cancer and/or breast cancer not suitable for surgical alternatives, writes analyst Kemp Dolliver. 

“We expect FDA approval for this indication later this year based on the results of the ICE3 trial, and full commercial launch in 2024 on issuance of a CPT1 code,” he added.

Mr. Dolliver said IceCure is well positioned to pursue a $400-million global market opportunity in breast cryoablation. Not only is IceCure the first company offering a cryoablation system with FDA approval specifically for breast cancer along with the breakthrough device designation, but ProSense has several attractive features.

These include the use of liquid nitrogen, instead of argon gas; faster and colder freezing of tumors; and the ability for clinicians to use to use only one probe/case, Mr. Dolliver said. 

In addition, he noted that competing cryoablation companies have invested in the interventional radiology market at the expense of the breast surgery market.