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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