On Monday, Piper Sandler maintained a positive outlook on the hypoglossal nerve stimulation (HGNS) therapy market following the recent FDA approval of Eli Lilly (NYSE:LLY)'s Zepbound medication for obstructive sleep apnea (OSA).
The firm has reiterated its 'Overweight' rating on Inspire Medical (TASE:PMCN) Systems, Inc. (NYSE:NYSE:INSP), with a price target set at $260. This valuation is based on approximately 7 times the enterprise value to projected 2026 sales, factoring in an estimated $524 million in net cash and around 31 million shares outstanding.
Piper Sandler also remains optimistic about LivaNova PLC (NASDAQ:LIVN), assigning an 'Overweight' rating with a price target of $75. The target is derived from roughly 11 times the firm's projected 2026 EBITDA estimate and includes $40 million of net cash and about 55 million shares.
Additionally, the firm has given an 'Overweight' rating to Nyxoah S.A. (NASDAQ:NYXH) with an $18 price target. According to InvestingPro data, NYXH has demonstrated strong momentum with a 72.6% year-to-date return, though analysis suggests the stock is currently trading above its Fair Value. The company maintains a solid financial position with a current ratio of 5.28, indicating strong liquidity.
The target is based on approximately 6 times the projected 2026 sales, discounted back by 10% to the end of 2025, and assumes about $76 million in net cash and roughly 34 million shares outstanding. The current exchange rate used in the valuation is 1.07385 EUR to USD.
The positive stance on these companies comes despite potential risks that include commercial execution, competition, and reimbursement challenges. Piper Sandler's view aligns with the companies' belief that GLP-1 medications will benefit the HGNS therapy market, which is supported by physician feedback.
Despite some unanswered questions about GLP-1 medication accessibility and patient compliance, the demand for HGNS therapy remains strong, with no anticipated impact on the patient pipeline for the coming year.
NYXH has shown promising revenue growth of 32.7% in the last twelve months, though InvestingPro analysis reveals several additional key metrics and insights available to subscribers, including detailed financial health scores and comprehensive valuation analysis in the Pro Research Report.
In other recent news, Nyxoah SA, a medical technology firm, has been the subject of several significant developments. The company reported its third-quarter revenue for 2024 at €1.3 million, with earnings per share at €0.50. It was also noted that approximately 62 patients received implants during the quarter. Nyxoah's Genio system, designed to treat obstructive sleep apnea, is expected to receive FDA approval in the first quarter of 2025. The company's monthly cash burn rate was approximately €5.6 million in the third quarter, and it is expected to increase through the first half of 2025 due to the company's U.S. commercialization efforts.
Oppenheimer maintained its Outperform rating on Nyxoah with a steady price target of $13.00, while H.C. Wainwright adjusted its price target for Nyxoah to $17.00, down from $18.00, maintaining a Buy rating.
In other recent developments, Nyxoah reported a 29% increase in European sales and successfully raised over EUR 85 million in capital, extending its financial runway into mid-2026, despite an operating loss of EUR 13.3 million for Q2 2024. Stifel and H.C. Wainwright have both maintained their Buy ratings on Nyxoah shares, targeting $18.00, following the presentation of additional data from the DREAM study. The study demonstrated comparable efficacy in both supine and non-supine sleep positions, marking a significant positive development.
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