Monday, July 27, 2015

Seeking Alpha: Entellus Medical's Valuation Doesn't Leave A Lot Of Breathing Room

Entellus Medical (NASDAQ:ENTL) checks a few attractive boxes within the med-tech space - namely, a less invasive procedure that can be performed in a physician's office instead of a hospital. Entellus offers an appealing solution to the balloon sinus dilation (or balloon sinuplasty) market, with a system that is smaller, more flexible, and less complex than rival systems. That said, key questions remain as to the true market potential for office-based balloon sinuplasty and the willingness of ENT specialists to adopt this technique (and Entellus's tools).

I have some issues with this as an investment idea, though. First, there's still ample controversy regarding the proper role of balloon sinuplasty within the treatment of chronic sinusitis. Second, Entellus is a small player competing with some very large rivals. Third, even if Entellus dominates the office market, I don't see enough revenue or profit potential to make the valuation truly compelling at this price.

Read the full article here:
Entellus Medical's Valuation Doesn't Leave A Lot Of Breathing Room

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