LYON - EDAP TMS SA (NASDAQ:EDAP), a company specializing in robotic energy-based therapies, today announced the addition of Fran Schulz to its Board of Directors.
Schulz, a seasoned executive with over 35 years of experience in the healthcare industry, is expected to contribute her extensive knowledge in strategic finance, accounting, and regulatory issues to the company's board.
Schulz's career highlights include her time at EY, where she was one of the founding members and senior partners in the firm's Life Sciences Practice. Her expertise includes a wide range of corporate transactions, having been involved in over 100 equity and debt deals, raising in excess of $15 billion. She is also well-versed in U.S. Securities and Exchange Commission (SEC) regulations and International Financial Reporting Standards (IFRS).
Her appointment comes at a time when EDAP TMS is actively expanding its Focal One platform, a leading solution for the treatment of prostate cancer using High-Intensity Focused Ultrasound (HIFU) technology.
Schulz expressed enthusiasm for joining the board during this phase of the company's growth and the opportunity to advance the application of robotic HIFU technology in treating additional diseases.
In addition to her new role at EDAP TMS, Schulz serves on several committees at Menlo College and has previously held board positions with the National board of Women in Bio and the California Life Sciences Industry Association. She is a licensed CPA in California and holds a B.S. in Business Administration from Menlo College.
EDAP TMS is recognized globally for its therapeutic ultrasound technology and offers a range of minimally invasive medical devices for various pathologies. The company's portfolio includes the Sonolith i-move lithotripter and lasers for urinary tract stone treatment, alongside its prostate cancer solutions.
This announcement is based on a press release statement from EDAP TMS SA. The company's forward-looking statements reflect management's current expectations but are subject to risks and uncertainties that could cause actual results to differ materially.
EDAP TMS has noted that factors such as market acceptance of its devices, economic conditions, and global events like pandemics could impact its business operations and financial performance.
In other recent news, EDAP TMS showcased robust financial results for the first quarter of 2024. The company reported a 10% year-over-year revenue increase to $16.1 million, primarily due to a 92% rise in High-Intensity Focused Ultrasound (HIFU) procedure volume.
This significant growth is attributed to the positive reception of the HIFI study data at the American Urological Association's annual meeting in 2024, which demonstrated the efficacy of HIFU procedures in treating prostate cancer.
In addition to these financial results, EDAP TMS also placed seven Focal One units, marking the same performance as the previous year. The company is broadening its footprint by entering new geographic markets and adding systems in existing U.S. hospitals. Notably, a second system has been placed in Taiwan, and growth is anticipated in this region.
H.C. Wainwright reiterated a Buy rating on EDAP TMS shares, maintaining a steady price target of $19.00. This outlook is based on the company's recent performance and the potential for future growth, especially with the French National Authority for Health considering HIFU procedure reimbursement for prostate cancer treatment.
Furthermore, EDAP TMS is conducting a Phase 3 study on Focal One HIFU for treating deep infiltrating rectal endometriosis, with results expected in the latter half of 2024. A positive outcome could lead to a product launch in the U.S. and EU in 2025. These developments illustrate the ongoing efforts of EDAP TMS to advance therapeutic ultrasound technology.
InvestingPro Insights
As EDAP TMS SA (NASDAQ:EDAP) welcomes Fran Schulz to its Board of Directors, investors and stakeholders are closely monitoring the company's financial health and market performance. According to InvestingPro data, EDAP currently holds a market capitalization of $191.08 million USD. Despite the company's innovative approach in the healthcare sector, particularly with its Focal One platform for prostate cancer treatment, financial metrics indicate challenges. The P/E Ratio as of Q1 2024 stands at -11.14, reflecting investor skepticism regarding the company's profitability in the near term.
One of the critical InvestingPro Tips highlights that EDAP holds more cash than debt on its balance sheet, which could provide financial flexibility and stability as the company continues to invest in its growth and technology advancements. Additionally, EDAP's liquid assets exceed its short-term obligations, suggesting the company is in a solid position to cover its immediate liabilities.
However, investors should be aware of some of the headwinds facing the company. Analysts have revised their earnings downwards for the upcoming period, and they do not anticipate EDAP will be profitable this year. Moreover, the company's share price has fallen significantly over the last three months, with a 38.25% drop in total return, signaling potential concerns about its near-term growth prospects. Furthermore, EDAP does not pay a dividend, which may influence investment decisions for those seeking regular income streams from their equity investments.
For those looking to delve deeper into EDAP's financials and future prospects, InvestingPro offers additional insights and tips. There are currently six more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/EDAP. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a comprehensive analysis to aid in making more informed investment decisions.
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