AngioDynamics HOLD

ANGO : NASDAQ : US$15.85

Target: US$16.25

AngioDynamics develops, manufactures, and markets a
broad line of products for minimally invasive surgical
procedures to treat peripheral arterial disease.
AngioDynamics’ devices are used by interventional
radiologists and vascular surgeons to treat non-coronary
disease. Major product lines include angiographic
catheters, hemodialysis catheters, image-guided vascular
access products, as well as varicose vein ablation
products (laser and drug).

All amounts in US$ unless otherwise noted

Life Sciences — Biomedical Devices and Services
Investment recommendation
ANGO reported fiscal Q3 sales that came in better than our/consensus
expectations, but earnings leverage is taking a little longer to catch up to
the top-line performance. Total sales in FQ3 increased 8% Y/Y (vs. our
+6.5%E), and was highlighted by growth in each of the business units –
Peripheral Vascular (+11% Y/Y), Vascular Access (+3% Y/Y), and
Oncology (+15%). However, GM and pro-forma EPS missed our
estimates again, and while the company modestly increased F2014 sales
guidance, it lowered guidance for operating cash, FCF, and EPS.
We are encouraged by ANGO’s performance over the past couple of
quarters but remain cautious about recommending ANGO at these levels.
For us to get more constructive on the name, we want to see at least a
few more quarters of consistent improvement in the business and
evidence of sustained operating leverage. We raise our target to $16.25
but maintain our HOLD rating.
Investment highlights
 FQ3 revenue of $88.2M (+8%) modestly exceeded our/consensus
estimate of $86.9M.
 GM of 51.8% (+80 bps Y/Y) was below our expectation of 52.1%
owing to product mix.
 ANGO modestly raised its guidance range for F2014 revenue and
now expects $351-355M (+3-4%), but FCF guidance range reduced
to $20-$21M (from $25-$28M) based on ERP impact and inventory

Transition Therapeutics Inc.

TTH : TSX : C$8.56
Target: C$13.25

Transition Therapeutics is a clinical-stage biotechnology
company developing novel therapeutics for the treatment
of central nervous system diseases and diabetes. The
company’s lead drug, ELND-005, is in Phase II clinical
testing as a potential therapy in both bipolar disorder and
neuropsychiatric symptoms associated with Alzheimer’s
disease. Transition has partnered the development of
diabetes drug TT-401 with Eli Lilly.
All amounts in C$ unless otherwise noted

Life Sciences — Biotechnology
Investment recommendation
Transition has provided an update on its clinical programs, announcing
the discontinuation of the Phase II study of D-5 in bipolar disorder. We
view this as a positive move, focusing the company’s resources (cash
and otherwise) on clinical trials with the highest probability of success.
An analysis of previous D-5 studies suggested a durable response on
relevant NPS endpoints, highlighting the rationale to continue the Phase
II in agitation and aggression in Alzheimer’s disease.
Investment highlights
 A disciplined approach. We believe that the discontinuation of both
the bipolar trial and TT-601 demonstrates a disciplined approach to
drug development, as well as a prudent use of resources.
 Cash balance just sufficient to fund D-5 to Phase II data. We
estimate that Transition has pro forma cash of ~$51 million, which
is sufficient to participate in TT-401 development with partner Lilly
and fund D-5 development for at least the next 12 months.
 D-5 has huge potential. D-5 has received Fast Track designation
from the FDA, and we believe could receive Priority Review if
clinical trials are successful. Although clinical data is now not
expected until the middle of 2015, we believe that this is an
appropriate time to position ahead of this catalyst.
We value TTH using an explicit NPV model for D-5 in AD NPS, and a
pNPV for TT-401 in diabetes. Following this update, we have removed
bipolar from our model, revised our assumptions for improved
economics in AD NPS, and adjusted our TT-401 model to reflect Phase II
development. Based on these changes, we are raising our target to
C$13.25 (from C$9.80), which supports our SPECULATIVE BUY ratin

Novadaq Technologies

NVDQ : NASDAQ : US$23.61
Target: US$26.00

Novadaq develops and manufactures intra-operative
fluorescence imaging technologies used in a variety of
open surgeries, such as breast, head, and neck
reconstruction; tumor and bowel re-section; and coronary
artery bypass grafting (CABG). In addition, partner
Intuitive Surgical offers Novadaq’s FIREFLY imaging
system on the da Vinci robot. Founded in 2000, the
company’s products were used by 45 of the top 50
cancer centers in 2011.

All amounts in US$ unless otherwise noted.

Life Sciences — Biomedical Devices and Services
Investment recommendation
We remain buyers of NVDQ, which we consider the most
compelling growth story in med-tech; possessing one of, if not
the largest TAM opportunities in our group, with a proprietary
imaging platform that could become ubiquitous in surgery. We
increase our target from $23 to $26, applying an 11x EV/sales
multiple to our 2016 revenue estimate of $118M (discounted
back to mid-2015), which is upwardly revised as we now expect
NVDQ to re-acquire US marketing rights for SPY Elite in Q4:15
and go direct thereafter, resulting in a much higher kit ASP.
Investment highlights
 Final PILLAR II results deliver – 139 patients who underwent
colorectal cancer surgery using PINPOINT imaging had a
1.4% anastomotic leak rate (vs. 12.6% published rate for LAR
patients); 8% of patients benefited from a change in surgical
plan via PINPOINT (0% leak rate). We expect results to be
published in a major surgical journal imminently.
 Next-generation PINPOINT system introduced at SAGES; will
launch in Q2. NVDQ will increase system ASP >30%.
 Expect NVDQ to go it alone with SPY. Our recent meetings
with management lead us to conclude the company will go
direct with SPY Elite once the agreement with LifeCell ends
in Sept. 2015. We increase our 2016 estimates to account for
a higher kit ASP.



OPKO Health Gains With News Release



As of 31 Mar 2014 at 12:04 PM EDT.


Open 9.03 P/E Ratio (TTM)
Last Bid/Size 9.25 / 11 EPS (TTM) -0.33
Last Ask/Size 9.26 / 22 Next Earnings 5 May 2014
Previous Close 8.96 Beta 1.06
Volume 1,102,332 Last Dividend
Average Volume 2,574,977 Dividend Yield 0.00%
Day High 9.26 Ex-Dividend Date
Day Low 8.92 Shares Outstanding 412.9M
52 Week High 12.95 # of Floating Shares 221.0759M
52 Week Low 6.14 Short Interest as % of Float 20.69%

OPKO Announces Launch of 4Kscore Test for Prostate Cancer



MIAMI–(BUSINESS WIRE)– OPKO Health, Inc. (NYSE:OPK) announced the availability of the 4KscoreTMTest through its CLIA-accredited OPKO Lab in Nashville, TN. The laboratory-developed test is designed to enhance the prostate biopsy decision making process that, in the United States, leads to approximately 1 million biopsies being performed annually, with 80% of the results indicating no cancer or a low-grade cancer. The 4KscoreTM Test will help to reduce unnecessary prostate biopsies by providing information on the risk (probability) of having high-grade prostate cancer.

The 4KscoreTM Test was developed by OPKO Lab, a division of OPKO Health, and tested in collaboration with 26 Urology centers across the United States from October 2013 to March 2014. Results showed that the 4Kscore TestTM was highly accurate for predicting the presence of high-grade cancer (Gleason score 7 or higher) prior to prostate biopsy. The full data from the blinded, prospective U.S. clinical validation study will be presented at the AUA Annual Meeting in Orlando, FL on May 18th at Plenary Session I.

“We are pleased to offer the 4Kscore TestTM at OPKO Lab to provide Urologists with new information to inform them of the risk of a patient’s having high-grade prostate cancer and help clarify the decision process surrounding prostate biopsy,” said David Okrongly, President of OPKO Diagnostics.

“We believe the 4Kscore TestTM will be an important benefit for Urologists and their patients and may lead to lower overall healthcare costs,” said Phillip Frost, M.D., OPKO’s Chairman and Chief Executive Officer.

About the 4Kscore™ Test

The 4Kscore™ Test measures the blood plasma levels of four different prostate-derived kallikrein proteins: Total PSA, Free PSA, Intact PSA and Human Kallikrein 2 (hK2). These biomarkers are combined with a patient’s age, Digital Rectal Exam (DRE) status (nodule / no nodule), and prior biopsy status (yes / no) using a proprietary algorithm to calculate the risk (probability) of finding a Gleason Score 7 or higher prostate cancer. The 4Kscore Test TM was developed by OPKO Lab, a division of OPKO Health, Inc., and will be performed at OPKO Lab’s CLIA-accredited facility in Nashville, Tennessee. The four kallikrein panel of biomarkers utilized in the test is based on over a decade of research conducted by scientists atMemorial Sloan Kettering Cancer Center and leading European institutions. The information provided by the 4Kscore TestTM can add new information to the shared decision making discussion between a Urologist and patient in determining the advisability of a prostate biopsy.

About Prostate Cancer

In 2014, over 233,000 new cases of prostate cancer will be identified and 29,480 men will die from the disease according to estimates released by the National Cancer Institute, making it the second most deadly cancer in U.S. men. Prostate cancer is usually first detected by elevations in serum PSA. However, PSA level is often elevated for reasons unrelated to prostate cancer. Although an elevated PSA level often leads to biopsy, about 80% of all prostate biopsies performed are either negative or indicate a low likelihood of high-grade cancer.


OPKO is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development and commercialization expertise and novel and proprietary technologies. For more information, visit


Insmed Update

INSM : NASDAQ : US$15.91

Target: US$30.00

Insmed is focused on developing novel, targeted inhaled
therapies for the treatment of serious orphan lung diseases. Its
lead product candidate is Arikace, a liposomal formulation of FDA
approved antibiotic, amikacin.

All amounts in US$ unless otherwise noted.


Life Sciences — Biotechnology
Investment recommendation
Reiterate BUY, $30 PT on Arikace’s potential in nontuberculous
mycobacteria (NTM).

INSM’s lead drug Arikace is an inhaled liposomal form of FDA-approved amikacin. We view the Ph2 US NTM data as
clearly positive, and culture conversion/safety data as supportive of expedited approval. Our $30 target is based on a pNPV analysis.
Investment highlights
 We see a clear, and likely abbreviated path to approval strongly
supported by culture conversion and QoL data. We think six-month
extension culture conversion, conversion over time, and QoL data to
be presented May 20th at ATS (San Diego) will support a subpart H
filing, a positive AdComm and conditional approval, given what we
see as strong clinically meaningful data in an unmet need.
 Primary endpoint statistics confounded by small numbers, unrelated
death. The sensitivity of the primary endpoint Wilcox rank sum
analysis is underscored by the change in p-value from p=0.148 to
p=0.02 when a repeated measures analysis is conducted excluding
the unrelated patient death. We think FDA’s previous strong focus
on cures/QoL (supported by our talks with KOLs) hasn’t changed.
 QDIP/GAIN gives FDA the flexibility to focus on the drug’s activity:
we think breakthrough status is highly likely. While some investors
are focused on safety, we think the lack of renal and ototoxicity and
note FDA has approved antibiotics for unmet needs with much more
problematic safety profiles (e.g. Sirturo’s black box warning

EcoSynthetix Inc.


TSX : C$2.50 
BUY  Target: C$5.50

Source: Interactive Data Corporation


based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. Its products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. Its lead product, ECOSPHERE


Investment recommendation

We are maintaining our BUY rating and C$5.50 target price. Our medium-term and long-term fundamental investment thesis remains unchanged: (1) a multi-billion dollar, global, petroleum-dependent addressable market; (2) platform technology with multiple potential applications to drive well above-average long-term growth; (3) proven production process and economics, and continued strong balance sheet; (4) same or better performance at a lower cost; and (5) highly capital efficient, low fixed production cost and 100% consumables business model. Although exact timing remains difficult to predict, the tipping point remains a matter of “when” and not “if”, in our view. We think the shares are likely to be range bound until there is clear evidence of accelerating revenue momentum overall, and commercial entry into the building products sector in particular. Nevertheless, we see this as a rare value stock in a strong technology market supported by US$1.43/share in cash and US$1.55/share in working capital.
Valuation  Our C$5.50 target price is based on our five-year DCF model (15% discount rate, 4% terminal growth rate). This should be an exceptional business (very high free cash flow) once volumes build in earnest, but investors will not pay fully for this potential until visibility improves, in our view. Our view is they will very quickly once more meaningful growth is evident.LATEX binders, is used commercially in the coated paper and paperboard industry. All amounts in C$ unless otherwise noted

Veeva Systems BUY


NYSE : US$37.80 
BUY  Target: US$48.00


Veeva provides industry-specific, cloud-based software to the life sciences industry. The firm’s solutions include: Veeva CRM for customer relationship management; Veeva Vault, a cloud-based content management and collaboration solution; and Veeva Network for the creation and maintenance of healthcare provider and organization master data. The firm was founded in 2007 and is headquartered in Pleasanton, CA. All amounts in US$ unless otherwise

Technology — Enterprise Software — Software as a Service

Veeva delivered a trifecta tonight: 1) a meaningful, across the board, quarterly upside, 2) an above consensus outlook for F2015, and 3) an unexpected extension of its relationship with Salesforce through 2025. We expect continued strong fundamental execution in F2015 and beyond to enable VEEV’s revenue growth to more than offset an orderly, and likely elongated, compression in the firm’s valuation multiples. The result, in our opinion, will be a stock price that meaningfully outperforms the overall stock market. We reiterate our BUY rating.
 Excellent quarter: another solid upside. Veeva reported revenues and non-GAAP EPS of $62.8M (+58% y-o-y) and $0.07, which were respectively $5.1M and a penny ahead of our estimates. Subscription revenues grew 89% in the quarter and made up 73% of the revenue mix. Calculated billings of $76.7M were up 56% in the quarter and easily topped our $64.3M estimate. VEEV generated FCF of $15.8M, up 135% y-o-y and $7.5M better than we had forecast.
 Color from the call. Veeva added 10 new Vault customers in the quarter, including the firm’s first ever 7-figure deal with this product. The firm ended the year with 198 total customers – including 147 in CRM, 69 Vault, and 6 Network. The firm noted FQ4 revenue retention of 166%. Lastly, Veeva extended its platform partnership with CRM for an additional 10 years – at more or less the same terms from a margin perspective – which should ease investor concerns with regard to any prospective changes in this relationship.
Outlook: revenue estimates inch up, likely a conservative cut. Management provided FQ1 and F2015 revenue guidance that at mid-points were roughly $3.0 and $4.5M ahead of our respective estimates. The firm plans to continue to invest for growth, which will drive modest margin compression in F2016 – we’re forecasting a still impressive ~20% operating margin. We believe there is upside to our revised, high-end of the range forecasts.


Trading Alert IMRS – Still Strugling

We have a large position in OPK as a result of the sale of IMRS at 2.65

The latest report points to a still struggling for sales – great tech company

IMRIS INC, Tuesday close $2.52, -10.32 pct premarket

Paradigm Capital cut its rating on the Canadian medical equipment maker’s stock to “hold” from “buy” and reduced price target to $2 from $3. Imris on Tuesday reported a bigger-than-expected loss for the fourth quarter as revenue took a hit due to delayed shipment of a major order. The compIMRIS Inc(IMRS:NASDAQ, US)



Above Average
As of 05 Mar 2014 at 10:41 AM EST.

Quote Details

Open 2.11 P/E Ratio (TTM)
Last Bid/Size 2.11 / 6 EPS (TTM)
Last Ask/Size 2.12 / 43 Next Earnings
Previous Close 2.52 Beta
Volume 816,587 Last Dividend
Average Volume 391,791 Dividend Yield 0.00%
Day High 2.18 Ex-Dividend Date
Day Low 1.84 Shares Outstanding 52.0M
52 Week High 4.30 # of Floating Shares
52 Week Low 1.16 Short Interest as % of Float

any also forecast lower-than-expected full-year revenue


OPKO Announces Fourth Quarter and Full Year 2013 Results

OPKO Announces Fourth Quarter and Full Year 2013 Results

Fourth Quarter Revenue Increases About 30%; Full Year Revenue More      Than Doubled to $96.5 Million

Company Has Strong Liquidity, Including Cash and Cash Equivalents of       $185.8 million as of December 31, 2013

Launch of 4Kscore™ Planned in Q1 2014


Above Average
As of 04 Mar 2014 at 9:31 AM EST.

Quote Details

Open 9.57 P/E Ratio (TTM)
Last Bid/Size 9.60 / 5 EPS (TTM) -0.29
Last Ask/Size 9.64 / 7 Next Earnings
Previous Close 9.40 Beta 1.05
Volume 50,249 Last Dividend
Average Volume 3,480,807 Dividend Yield 0.00%
Day High 9.64 Ex-Dividend Date
Day Low 9.57 Shares Outstanding 408.0M
52 Week High 12.95 # of Floating Shares 216.217M
52 Week Low 6.14 Short Interest as % of Float 21.53%

MIAMI–(BUSINESS WIRE)–       OPKO Health, Inc. (NYSE:OPK), a multi-national biopharmaceutical and      diagnostics company, today reported operating and financial results for      its 2013 fourth quarter and full year ended December 31, 2013.

Financial Highlights

  •         For the fourth quarter of 2013, consolidated revenues increased about        30% to $20.7 million from $16.2 million in the prior year period. For        the year ended December 31, 2013, consolidated revenues more than        doubled to $96.5 million from $47.0 million in the prior year. Revenue        for the year ended December 31, 2013, included $12.5 million of        revenue resulting from a strategic partnership in the field of RNA        interference with RXi Pharmaceuticals Corporation.
  •         Cash and cash equivalents were $185.8 million as of December 31, 2013,        providing OPKO with liquidity to fund research and development and the        Company’s operations.
  •         Cash used in operations was $58.2 million during the year ended         December 31, 2013, as compared with $25.4 million of cash used in        operations during the year ended December 31, 2012. The increase in        cash used in operations during 2013 reflects the full impact of our        August and March 2013 acquisitions of PROLOR Biotech, Inc. and         Cytochroma Inc., respectively. During 2013, we also utilized        approximately $8.8 million for transaction-related expenses.
  •         Net loss for the 2013 fourth quarter was $16.8 million compared to a        net loss of $1.1 million for the 2012 period. The increase in net loss        for the 2013 fourth quarter was principally related to research and        development expenses incurred in connection with our ongoing Phase 3        clinical trials of Rayaldy™ and human growth hormone        (“hGH-CTP”), and interest expense related to the January 2013        convertible senior notes due in 2033 (the “2033 Senior Notes”), which        expenses were partially offset by $18.9 million in gains recorded on        the successful exit from strategic investments. The 2012 fourth        quarter results also included $9.7 million in net tax benefits        principally related to the acquisition of our laboratory business in        late 2012.
  •         Net loss for the full 2013 year was $114.8 million compared to $31.3        million for the 2012 period. The increase in net loss for the 2013        full year was primarily related to the previously mentioned research        and development expenses related to our Rayaldy™ and hGH-CTP        clinical trials, interest expense on the 2033 Senior Notes, and        non-recurring costs related to strategic and business development        activities, as well as the following non-cash charges:
    • $36.5 million related to the change in fair value of derivative            instruments, principally related to embedded derivatives that are            part of the 2033 Senior Notes;
    • $11.5 million on losses from investments in equity method            investees;
    • $8.7 million loss from early conversion of some of the 2033 Senior            Notes; and
    • $6.9 million related to the change in fair value of contingent            consideration payable in connection with prior acquisitions.

These expenses were partially offset by $29.9 million in gains recorded      on the successful exit from strategic investments during 2013. OPKO’s      2012 results also included $9.6 million in net tax benefits principally      related to the acquisition of our laboratory business in late 2012.

Phillip Frost, M.D., OPKO’s Chairman and Chief Executive Officer,      commented, “From an R&D perspective, all of our programs are      progressing. We made significant strides in 2013 with our ongoing Phase      3 trials for Rayaldy™ and hGH-CTP; 2014 will be a pivotal year      for our development programs. We look forward to announcing top-line      results for Rayaldy™ in mid-2014 and filing a NDA during the      first half of 2015. We are also enthusiastic about the planned launch      later this month of our 4Kscore™ blood test for prostate cancer      which we believe will lead to a great improvement in the diagnosis and      management of prostate cancer.”

“Work has been continuing in our research laboratories on a program to      utilize specific oligonucleotides to up regulate protein production. A      pre-IND meeting has been scheduled with FDA in connection with the      development of the first product to treat Dravet’s Syndrome, a      congenital condition characterized by chronic seizures.”

Dr. Frost added, “During the year, we further strengthened our cash      position by exiting certain strategic investments which provided      attractive returns. Bolstered by our sound financial position, we look      forward to continuing the advance of our robust product development      pipeline of promising diagnostics and pharmaceuticals.”

Business Highlights

  • Finalizing Steps Toward 4Kscore Launch: In         February 2014, OPKO announced successful initial results of the        clinical validation study of the 4Kscore™ test currently        underway at 21 large urology centers in the United States. The study,        involving more than 1,200 men, is now more than 50% complete and        supports the U.S. launch of the 4Kscore™ test later this month.
  • Completed Patient Recruitment In The Second Phase 3 Trial of Rayaldy™:         This trial is the second of two identical randomized,        double-blind, placebo-controlled, multi-site studies for Rayaldy™        — to treat patients with secondary hyperparathyroidism (SHPT), stage        3 or 4 chronic kidney disease (CKD) and vitamin D deficiency. Top-line        results from both trials are expected in mid-2014.
  • Positive Pre-Clinical Results on Long-acting Factor VIIa-CTP        Presented at the 7th Annual Congress of the European Association for        Haemophilia and Allied Disorders (EAHAD); Orphan Drug Designation also        Granted by FDA. Preclinical data presented at EAHAD on February        26-28 in Brussels, showed that OPKO’s long-acting Factor VIIa-CTP        exhibited a four times longer half-life and a four times improved drug        exposure versus Novo Nordisk’s $1.7 billion Factor VIIa product,        NovoSeven. Additionally, on February 27, 2014, the FDA granted orphan        drug designation to OPKO’s long-acting Factor VIIa-CTP for the        treatment and prophylaxis of bleeding episodes in patients with        hemophilia A or B with inhibitions against Factors VIII or IX.
  • TESARO Achieves Successful Primary Endpoints in Phase 3 Trials of        Rolapitant. TESARO recently announced that two Phase 3 trials of        oral rolapitant, one in patients receiving moderately emetogenic        chemotherapy (MEC) and one in patients receiving cisplatin-based        highly emetogenic chemotherapy (HEC), each met the primary endpoint of        complete response (CR) in the delayed (24 to 120 hour) timeframe        following chemotherapy. Enrollment in the third and final Phase 3        trial of oral rolapitant, which is being conducted in patients        receiving cisplatin-based HEC, is expected to conclude during the        first quarter of 2014. TESARO anticipates that results from this study        will be available in the second quarter of 2014. Further, the clinical        trial of intravenous (IV) rolapitant is well underway, and TESARO        anticipates finalizing the dose that will provide comparable exposure        to the oral formulation by the end of the first quarter of 2014.
  • Completed Acquisition of Laboratorio Arama de Uruguay Limitada:        OPKO has continued to grow its Latin American presence with the early         January 2014 acquisition of Laboratorio Arama de Uruguay Limitada        (“Arama”). Arama broadens the global commercial prospects for OPKO’s        product pipeline by establishing a footprint in Uruguay that may        facilitate the Company’s future commercial expansion into neighboring         Argentina, as well as by providing another platform to commercialize        the 4Kscore™ product.
  • OPKO Investee, Neovasc, Successfully Completes First Human Implant        of Tiara™ Transcatheter Mitral Valve: In early February 2014,        Neovasc Inc., announced that a human implantation of its Tiara™        transcatheter mitral valve was successfully performed on January 30th        by physicians at St. Paul’s Hospital in Vancouver, BC. The transapical        procedure resulted in the elimination of mitral regurgitation (MR) and        significantly improved heart function in the patient, without the need        for cardiac bypass support and with no procedural complications.        OPKO’s investment in Neovasc continues to appreciate.
  • Exit from Sorrento Therapeutics: In mid-December 2013, OPKO        reported the highly successful exit of its investment in Sorrento        Therapeutics, Inc. The sale of Sorrento shares added to OPKO’s cash        position and represented an approximate ten-fold return of OPKO’s 2009        investment

Globus Medical Buy

GMED : NYSE : US$24.15 
BUY  Target: US$28.00 


Globus is a medical device company focused exclusively on the design, development, and commercialization of products that promote healing in patients with spine disorders.
All amounts in US$ unless otherwise noted

Investment recommendation

We maintain our BUY rating on Globus following a solid Q4/13. Globus’s ability to continue to take share and generate strong operating margins reinforces our thesis that the company offers investors multiple opportunities to create value. Our thesis remains intact and we are buyers of Globus into 2014 as the company looks well positioned for growth via continuous new product flow, significant distribution expansion in 2013, and best in-class financial discipline.
Investment highlights  Q4/13 revenue of $115.2M was solid and in line with the preliminary numbers. Pro forma EPS of $0.25 came in well above our and consensus estimates of $0.22 on higher-than-expected operating leverage.
 Sixteen new product launches in 2013 and significant new rep additions position Globus for accelerating growth into 2014.
 Management reiterated 2014 guidance for revenues in the range of $480M-$486M, and EPS of $0.90-$0.92
Valuation We are maintaining our $28.00 price target based on a 26.8x PE multiple applied to our 2015 EPS estimate of $1.04.


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