Analysts at Leede Jones noted that a qualitative study in a peer-reviewed research article validates the use of Perimeter Medical Imaging AI Inc's (TSX-V:PINK, OTC:PYNKF) flagship wide-field Optical Coherence Tomography (WF-OCT) system for other indications, including head and neck tissue.
The research study published in JAMA Otolaryngology — Head and Neck Surgery was conducted at the Mount Sinai Icahn School of Medicine and included 53 adult patients.
The study deployed the FDA-cleared Perimeter S-Series OCT system in patients undergoing primary ablative surgery of the oral cavity or oropharynx for squamous cell carcinoma (SCC). The firm's S-Series OCT device is not AI-enabled, unlike its B-Series OCT system, which is still undergoing clinical testing.
“Sixty-nine resected specimens were collected and then imaged with the firm’s OCT in the operating room prior to routine pathology in order to facilitate comparisons after surgery,” said the analysts at Leede Jones.
“Results indicated the visualization and distinguishing tissue microstructures from resected tissue…The system was able to distinguish malignant specimens from benign specimens, and at a rate of 1-2 minutes per margin,” they added.
Key takeaway
The researchers concluded that the WF-OCT system was feasible for visualizing and discerning tissue architecture such as muscle and lymphatic vessels at the surface of the resected tissues.
“Importantly, this qualitative study also validates the use of the firm’s flagship OCT system for other indications, including head and neck tissue. Such tissue comprises of complex structures, as compared to breast tissue, which remains relatively homogenous,” said the analysts.
“Although this study was conducted on the S-Series OCT system, head and neck surgery, for now, is not a medical indication embedded in our forecasts, particularly since the firm’s core focus remains in breast reconstruction surgeries. Separately, we would be interested in seeing if the firm’s AI-enhanced B-Series OCT system could replicate findings in a similarly-designed study.”
Leede Jones currently has a Speculative Buy rating and a $6.75 price target on Perimeter Medical's shares.
Based in Toronto, Canada and Dallas, Texas, Perimeter Medical is a medical technology company driven to transform cancer surgery with ultra-high-resolution, real-time, advanced imaging tools to address areas of high unmet medical need. Available across the US, the FDA-cleared Perimeter S-Series OCT system provides real-time, cross-sectional visualization of excised tissues at the cellular level, with 10x greater image resolution than X-ray and ultrasound, and 100x greater than MRI.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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