J.P. Morgan Comments On Hansen Medical's Model Update

In a report published by J.P. Morgan, Hansen Medical HNSN it is adjusting its Hansen estimates to take into account the company's recent 4Q10 results. J.P. Morgan said that, for 2011, it expects total revenues of $23.1M (+39%), down from $27.0M previously on more conservative system placement assumptions. “While Hansen has made progress on some fronts since CEO Bruce Barclay joined the company in mid-2010, visibility on the company's sustainable growth trajectory remains limited. We believe that it was with this in mind that management chose not to reinstate guidance on the 4Q call, failing to achieve one of the objectives it had previously laid out. Our own model assumes that Hansen places 20 Sensei systems in 2011, up from 16 in 2010, and recognizes revenue on 20 as well (vs. 12 in 2010). The company exited 2010 with 16 systems in deferred revenue. We expect system revenues of $13.2M (+70%) to be backend loaded in 2011, with 6 placements forecast in 1H11 and 14 in 2H11 following the anticipated midyear US/EU launch of the new vascular platform. Disposable sales are modeled up 26% to $5.0M on 2,975 catheter units. Finally, we expect service revenues of $4.9M (+1%).” Hansen Medical closed yesterday at $2.06.