Medical technology company Clinical Laserthermia Systems (CLS) develops and sells products for focal laser treatment of brain tumors, prostate cancer, drug-resistant epilepsy and metastatic cancer.
The company's laser ablation technology removes diseased or disease-causing tissue with high precision by heating the target tissue to a high temperature. The procedure is minimally invasive and is performed under the guidance of transluminal systems such as MRI or ultrasound. The high precision means less risk of side effects and faster recovery for the patient than open surgery.
The market potential for ClearPoint Prism and TRANBERG
In neurosurgery, the CLS treatment system is marketed in the USA by ClearPoint Neuro under the brand ClearPoint Prism Laser Therapy System for the treatment of glioblastoma and drug-resistant epilepsy.
Glioblastoma is an aggressive form of brain tumor that affects 250 people per year and is associated with a high mortality rate, which means that there is a great need for new alternatives to current treatments – open surgery, chemotherapy and radiation. MRI-guided laser ablation makes it possible to treat tumors that are close to sensitive structures or deep in the brain.
The company's other treatment area within neurosurgery, drug-resistant epilepsy, affects approximately 20-25 million people. This is epilepsy that does not respond to epilepsy medications and causes a reduced quality of life for the sufferer. CLS Prism treatment makes it possible to remove the area of the brain that causes epileptic seizures.
In urology, the company's TRANBERG system is marketed in the EU, US and Asia-Pacific for the treatment of localized prostate cancer. Prostate cancer is one of the most common types of cancer, affecting approximately 1,4 million men per year. Many of the patients are overtreated through radical surgery, or undertreated through active surveillance. The TRANBERG system offers a minimally invasive treatment option.
Full market launch in neurosurgery
During the spring, ClearPoint Neuro made progress in the limited market introduction of ClearPoint Prism in the US, and The company has recently moved on to full market introduction..
The market introduction has received positive feedback and new opportunities have opened up in the neuro segment earlier than expected. ClearPoint Neuro has received 510(k) clearance for its Prism Bone Anchor Accessory, expanding the use of ClearPoint Prism beyond the MRI room into the operating room. Now, ClearPoint Prism is being further developed to enable access to a larger portion of the market for image-guided focused laser ablation (FLA), also known as Laser Interstitial Thermal Therapy (LITT).
Focused strategy reduces costs
In light of this, CLS has decided to increase its investments in neurosurgery and to keep the urology segment on a low-cost basis for the next 12-18 months. However, CLS plans to continue to make progress in the urology area, not least after the approval in Singapore, which was the first approval in the Asia-Pacific region. The company will also focus on clinical evidence generation to obtain broad reimbursement in urology in Europe.
By focusing primarily on neurosurgery, CLS creates the conditions to reduce the company's costs by up to SEK 65 million by 2026 and thereby increase the opportunities to achieve positive operating profit. The company estimates that sales revenue of SEK 70 million is required in 2026 to achieve positive operating profit in the same year.
Rights issue
CLS is currently in need of capital to be able to execute its commercialization plans. Therefore, a rights issue of units consisting of shares and warrants is now being carried out. The initial capital contribution from the issue amounts to SEK 59 million and the redemption of warrants of series TO 7 B in November may provide an additional SEK 22 - 85 million.
If the rights issue is fully subscribed and warrants are fully exercised, the company believes that they will not need to seek additional capital to achieve the goal of a positive operating profit in 2026.
The capital contribution from the issue is intended to be used for repayment of bridge loans, operating costs, continued commercial launch and market establishment, as well as ongoing clinical development and clinical collaborations.
Summary of the offer
| Terms & conditions |
One existing share entitles you to six unit rights and five unit rights entitle you to subscribe for one unit. Each unit consists of one B share and one warrant free of charge of series TO 7 B. |
| Subscription period | June 12 – June 26, 2024 |
| Subscription price | SEK 6,25 per unit |
| Volume | Initially up to SEK 59 million + SEK 22-85 million from TO 7 B |
| Pre-money valuation | SEK 49,07 million |
| Underwriting and guarantee commitment | Guarantee commitment of SEK 38 million, corresponding to approximately 65 percent of the rights issue.
Subscription commitments of SEK 0,25 million. |
Information and subscription
 |
Subscribe via Avanza |
BioStock is a news service and does not provide investment advice, does not mediate any investment orders and does not take any responsibility for actions and/or any loss or damage of any kind based on the use of content published on BioStock.se. Instead, each investment decision is made independently by the individual investor. The content of BioStock's news and analyses is independent, but as BioStock's operations are partly financed by companies in the industry, the BioStock website may contain news about companies from which BioStock has received funding.
This material has been prepared for marketing purposes and is not and should not be considered to constitute a prospectus under applicable laws and regulations. The full terms and conditions of the rights issue and further information about the company have been set out in a memorandum which has been announced and published on the above-mentioned company's website.