21st July, 2022
17th August, 2022
The Insider: Meet the Fund Manager sessions are a great way to hear directly from leading fund managers. They share their approach to investing, favourite companies and their market view for the year ahead.
The Insider: Meet the CEO sessions feature a selection of company leaders who provide a succinct overview of big things their companies are doing.
The 2022 market downturn came thick and fast, upsetting several market sectors and leaving behind a swathe of stocks that were either uprooted, hanging on for dear life or stripped of their once growing shoots. Even the reputedly recession-proof biotech sector was not spared.
Speaking on Reach Markets’ The Insider: Meet the Fund Manager, Matt McNamara from venture capital company Horizon 3 Healthcare listed EBR Systems Limited (ASX: EBR) as one of his favourite stocks and one of the biotechs whose momentum was dampened by the turn of events.
Watch the full The Insider: Meet the Fund Manager session.
“Nothing has gone wrong with this company. It’s just been caught up in the correction so I think it represents great buying at the moment,” Mr McNamara said in July 2022.
“They listed at $1.08 and are now something like 50-60 cents.”
Founded in 2003, the Silicon Valley-based company was officially admitted to the ASX in November 2021 after attracting $110 million from investors such as Brandon Capital, AustralianSuper, Hesta and HostPlus.
Long-time backer of EBR Systems Mark Carnegie, who had initially invested $40 million in the company, even stated in November 2021, “This could be as big as Cochlear.”
“EBR is dedicated to the superior treatment of cardiac rhythm disease so think of pacemakers. The company’s got a patented wireless stimulation [device] that’s developed to eliminate the need for cardiac pacing leads,” Mr McNamara said.
According to the CIO, leads (wires) have historically been a major source of complications and reliability issues in cardiac rhythm management and EBR’s wireless method of stimulating the heart is considered a superior solution for treating heart failure, particularly in the heart’s left ventricle.
CEO of EBR Systems John McCutheon joined Reach Markets’ The Insider: Meet the CEOs session in August 2022 where he provided valuable insights including how pacemakers work, the downsides to using leads, the advantages of EBR’s solution and how it positions the company in the industry.
Watch the full The Insider: Meet the CEO session.
“Cardiac rhythm management is the pacemaker market and it’s currently about a US$8 billion global market,” he said.
“We estimate a US$2.5 billion initial addressable market.”
Stating that leads have been the #1 cause of product failure since pacemakers were invented he added, “It’s particularly problematic on the right side of the heart but even more problematic when they’re trying to pace the left ventricle.”
Scaled comparison of EBR’s WISE® device competitor products. Source: EBR
“EBR’s WISE® device is much smaller relative to other pacemakers. The magic to what we do and what makes it so proprietary and without peer is the size – how tiny it is and how it can be placed into the left ventricle,” he added.
“We’re the only leadless pacemaker that can be used to be put into the left ventricle.”
Highlighting this as a potential technological moat for the company, Matt McNamara said, “[Some of] the big medical device companies have leadless pacemakers for the right side of the heart.”
“So we feel that this is a fantastic acquisition target because you combine those two and you have a leadless heart pacemaking system.”
In its Q3 2022 quarterly announced on 26th October 2022, EBR reported that its pivotal trial of WISE® was underway following the completed enrolment of 183 patients in June.
Further, EBR indicated that it was well-positioned for commercial success with the US Food and Drug Administration granting WISE® Breakthrough Device Designation, which provides access to greater initial payment coverage in the US.
Click here to view more videos from Matt McNamara’s The Insider: Meet the Fund Manager session, or click here to view the full The Insider: Meet the CEOs session with EBR Systems CEO John McCutheon.
Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets’ position. Any advice contained within this presentation is general advice and does not consider your personal circumstances, you should consider whether it is appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.
Past performance is not a reliable indicator of future performance.
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Past performance is not a reliable indicator of future performance.
The CEOs of all the companies chosen as Fund Manager favourite stocks are invited to present at our Meet the CEO series. Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.
Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.
The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.