NEW YORK, June 21, 2022 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Tivic Health Systems, Inc. (NASDAQ: TIVC). The in-depth 18-page initiation report includes detailed information on the Tivic Health System’s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Platform Model Provides Scalability - Tivic’s current product pipeline is centered around its proprietary technology, which is fundamental to the discovery and development of its medical devices. The core technology is a platform in itself, which provides the base Tivic intends to use to develop medical devices for different indications. The technology combines various parameters that modulate the nerve signals to alleviate inflammation-driven symptoms like pain and congestion. The platform is expected to allow for an extension of the core technology beyond the company’s current pipeline, providing higher upside potential compared to targeting a single indication.
- Need for Alternatives - Drug-based treatment has become foundational to healthcare, given its ease of use and effectiveness in treating diseases. Even though drug-based treatment has its benefits, it can carry dangerous side effects for the human body and can also lead to habituation and, in worse cases, drug abuse. Cold, cough, and pain medications (Dextromethorphan, Pseudoephedrine, Acetaminophen) are available over the counter and are commonly found to be misused. This has led to the need for alternative treatment options, aiding the growth of bioelectronics. Tivic’s ClearUP® is its first marketable device to treat sinus pain and congestion arising from chronic sinusitis, cold, and allergic rhinitis. ClearUP® is a strong alternative, or complement, to the drug-based treatments that currently dominate the underlying market.
- Effective, Safe, and Easy to Use - Tivic’s first FDA-cleared product, ClearUP® Sinus Relief, treats various symptoms of allergic rhinitis, sinusitis, and cold and flu. ClearUP® underwent two clinical studies demonstrating the safety and efficacy of the medical device in treating sinus pain and congestion. The trials demonstrated an efficacious drug-free alternative with no major side effects. Greater than 95% of the users reported that the device was easy to use, and 82% preferred ClearUP® over existing treatments.
- Large Addressable Market – Tivic’s product targets a large and lucrative addressable market. Tivic estimates that the total available market for ClearUP® is over 200 million U.S. adults. While other potential indications include migraine (39 million cases in the U.S.), temporomandibular joint disorder (31 million cases in the U.S.), and tinnitus (50 million cases in the U.S.). This represents a multi-billion-dollar opportunity for Tivic in the U.S. alone. Additionally, the company has also received a CE mark for ClearUP®, allowing it to market the device in European and numerous other countries.
- Valuation – We have valued the company using DCF as our preferred methodology. Our investment thesis assumes increasing adoption of bioelectronics, a large addressable market, increasing market share of ClearUP®, and the upside potential of the company’s platform technology. We have valued the company at $41.52 million, or $4.22 per share, contingent on successful execution by the company.
About Tivic Health Systems, Inc.
Tivic Health Systems Inc. is a commercial-phase health technology company that develops and commercializes bioelectronic medicine. The company’s first commercial product, ClearUP® Sinus Relief, is a medical device intended to relieve sinus and nasal inflammation.
For more information, visit https://tivichealth.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Tivic Health Systems for producing research materials regarding Tivic Health Systems, Inc., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security; however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. Diamond Equity Research LLC is being compensated by Tivic Health Systems, Inc. (NASDAQ:TIVC) for producing research materials regarding Tivic Health Systems, Inc., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 06/21/22, the issuer had paid us $35,000 for our services, which commenced 04/25/2022 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 06/21/2022. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information, and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover, we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and do not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements; these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities, including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective Securities and Exchange Commission filings for Tivic Health Systems, Inc.
Contact:
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