Main menu button

The next generation of biopsy instruments

27 Apr 2021

Read the full report here:


NeoDynamics is a MedTech company that has developed a new generation of breast biopsy instruments. Commercial introduction is underway. Clinical trials are used as traction. Read our investment case (pp. 3-8) and valuation (pp. 32-36) for a shorter overview of the case.

New generation of breast biopsy instruments

NeoDynamics has invented NeoNavia, which is a powered biopsy instrument with three disposable needles that easily cuts through tissue and positions the needle in the correct location with no risk of overshooting the target. Its micro pulse technology is patented. The new proprietary needle type FlexiPulse gives 300 percent larger specimens in a tissue model. It is being evaluated in axillary (armpit) biopsy. Axillae are a sensitive part of the body, full of blood vessels and nerves, for which traditional biopsy instruments are not suited.

The product development is complete and NeoNavia has a CE certification. Commercialization is underway, with the first order having been received during the fourth quarter of 2020. The company is well prepared for the commercialization. Large sums are invested in two clinical trials with around 500 patients between them. The important FDA 510(k) application (for the US market) has been delayed but should be submitted by mid-year 2021. The company’s largest shareholder, who is a Chinese company, will be responsible for clearance and sales in China.

Investment thesis

In our opinion, the investment thesis for NeoDynamics boils down to the company succeeding on the American market. Clinical trials and sales to clinics in Europe will initially be important as testing grounds and for user references. We expect a clinical trial on the US market starting in 2022 together with a simultaneous market introduction. If successful, this could lead to a partnership with a large American company around 2023. This partner should be able to expand US sales quickly, which should lead to NeoDynamics becoming cash flow positive. Over time, the European and Chinese market should gradually catch up with the US market and contribute with growing positive cash flows. A sale of NeoDynamics to a larger MedTech company is likely if commercialization is successful in the USA.


We believe that the share is weighed down by the latest directed share issue of about SEK 90m from November last year. We value the company at SEK 5.55 in the base case scenario. Our bear scenario valuation is SEK 2.90, while our bull scenario valuation is SEK 7.76. Compared to a group of similar Swedish MedTech companies, NeoDynamics has a low market cap and enterprise value despite being in a more advanced stage.


Carlsquare AB,, hereinafter referred to as Carlsquare, conducts business with regard to Corporate Finance and Equity Research in which areas it, among other things, publishes information about companies including analyzes. The information has been compiled from sources that Carlsquare considers to be reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be regarded as a recommendation or invitation to invest in any financial instrument, option or the like. Opinions and conclusions expressed in the analysis are intended only for the recipient.

The content may not be copied, reproduced or distributed to another person without the written approval of Carlsquare. Carlsquare shall not be held responsible for any direct or indirect damage caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments provide opportunities for value increases and profits. All such investments are also subject to risks. Risks vary between different types of financial instruments and combinations of these. Historical returns should not be considered as an indication of future returns.

The analysis is not directed to U.S. persons (as defined in Regulation S of the United States Securities Act and interpreted in the United States Investment Company Act 1940) nor may it be disseminated to such persons. The analysis is also not directed to such natural and legal persons where the distribution of the analysis to such persons would result in or entail a risk of a violation of Swedish or foreign law or constitution.

The analysis is a so-called Commissioned Research Report where the analyzed Company has signed an agreement with Carlsquare for analysis coverage. The analyzes are published on an ongoing basis during the contract period and for a usual fixed remuneration.

Carlsquare may or may not have a financial interest in the subject of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.

The analyst Richard Ramanius does not own and is not allowed to own shares in the company analyzed.

The next generation of biopsy instruments