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ClearPoint's (CLPT) Prism System Favored by Latest Study

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ClearPoint Neuro, Inc. (CLPT - Free Report) recently announced the publication of preclinical results of an in vivo validation study in the Journal of Neurosurgery. The aim of the research, which was conducted by the company and its Swedish partner, Clinical Laserthermia Systems AB, was to assess the safety, accuracy and efficacy of the Prism System.

The data demonstrated that the ClearPoint Prism Neuro Laser Therapy System provides accurate and near real-time temperature of the brain tissue. Additionally, the morphology of the lesion, as visualized by Thermoguide MR-thermometry software, correlated well with histopathology.

The Prism System is presently in limited market release at select academic medical centers across the United States.

In the same press release, ClearPoint also announced that the Prism System has also been used together with its FDA-cleared Array software version 1.2 to improve the practicality of neuro laser therapy.

The latest positive study result is likely to be a significant stepping stone for ClearPoint and boost its Laser Therapy business.

Significance of the Study Result

The Prism System features the only non-cooled neurosurgical laser applicators currently available in the market. ClearPoint’s next-generation laser applicator technology will likely eliminate the need for external cooling and thereby simplify setup, reduce power and ablation time, reduce imaging artifact and enable more efficient workflows.

Per an expert directly associated with the in vivo validation study, the Prism System offers a seamlessly integrated solution for precise and more efficient laser interstitial thermal therapy. This is expected to aid in advancing new treatment options for patients with intractable epilepsy, movement disorders and brain tumors.

Management believes that the peer-reviewed validation will likely demonstrate the advantages of the Prism System that result in improved predictability of targeted cell death.

Industry Prospects

Per a report by Allied Market Research, the global laser therapy devices market was valued at $2.4 billion in 2021 and is anticipated to reach $5.7 billion by 2031 at a CAGR of 8.9%. Factors like the rise in demand for non-invasive procedures and technological advancements are likely to drive the market.

Given the market potential, the latest favorable study result will likely provide a significant impetus to ClearPoint’s business.

Notable Developments

Last month, ClearPoint announced its receipt of the FDA’s clearance and first-in-human cases using the ClearPoint 2.2 Software with integrated Maestro Brain Modeling. The company also announced the publication of a key validation study for its ClearPoint Maestro Brain Model in the peer-reviewed journal NeuroImage.

In January, ClearPoint announced the installation and completion of an initial procedure with both the ClearPoint Prism Neuro Laser Therapy System and the ClearPoint Neuro Navigation System.

The same month, ClearPoint announced its receipt of the FDA’s 510(k) clearance for its SmartFrame OR Stereotactic System. The system is expected to offer flexible workflows to surgeons (including iCT forward projection), thereby enabling precise image-based corrections to achieve sub-millimetric accuracy.

Price Performance

Shares of the company have lost 22.8% in the past year against the industry’s 15.5% rise and the S&P 500's 32.9% growth.

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Zacks Rank & Key Picks

Currently, ClearPoint carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .

DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 80.9% compared with the industry’s 26.9% rise in the past year.

Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.

Cardinal Health has gained 64.7% compared with the industry’s 18.1% rise in the past year.

Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.

Cencora’s shares have rallied 60.2% compared with the industry’s 7.7% rise in the past year.

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