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Northland Capital Partners View on the City - Polarean Imaging: Initiation of Coverage

Northland Capital Partners View on the City - Polarean Imaging: Initiation of Coverage




MARKET CAP – £12.9m




                 LIAM GASCOIGNE-COHEN


Year-end Dec








Revenue (US$m)














Adj. pre-tax Profit (US$m)







Adj.EPS (cents)















SOURCE: Northland Capital Partners Limited estimates.*Northland Capital Partners Limited acts as Nomad and Broker to Polarean Imaging Ltd. and therefore this information should be viewed as a Marketing Communication. #Priced at prior day’s close. USD/GBP = 0.79 (Fidessa)


Initiation of Coverage: Pivotal Phase III trials are underway (Note attached)




Polarean Imaging plc (‘Polarean’, ‘the Company’) is a revenue-generating company specialising in drug-device combinations for the magnetic resonance imaging (‘MRI’) market. The Company’s gas polarisation platform provides a non-invasive, radiation-free method to visualise lung structure and function using MRI.


  • Fundraise of $4m:  In December 2018, the Company conditionally raised US$4 million (£3.125 million) before expenses through a placing of 22m ordinary shares with new and existing investors at a price of 14 pence/share. The fundraise is subject to shareholder approval.
  • Novel technology: Polarean’s flagship product is a novel lung imaging technology that produces highly reproducible quantitative images which are more convenient for and less harmful to the patient than current methods.
  • Revenue generating: Although yet to receive clinical-approval, Polarean has already sold several polarisers to medical research institutes and remains focused on expanding the installed base of systems through additional sales of research units. Not only is this a source of revenue but it also underlines the academic acceptance of the Company’s technology.
  • Pivotal Phase III trials underway: Polarean is currently running two Phase III trials for its drug-device platform. The trials are expected to complete recruitment in Q2 2019 and, if successful and approved by the US Food and Drug Administration (FDA), will enable clinical sales of its system, expected in 2020E.
  • Major market opportunity: The annual burden of pulmonary disease in the US is estimated to be over US$150b and Polarean expects over $500m in system sales just to top tier institutes.
  • Valuation: Northland’s Discounted Cash Flow model indicates a fair value of £57m. We set a price target of 46p/share based on 125m fully diluted shares outstanding.




Healthcare technology company with a proprietary drug-device combination in late-stage clinical trials.


1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.




This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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