SAN JOSE, CA - PROCEPT BioRobotics Corp (NASDAQ:PRCT), a medical device company specializing in surgical and medical instruments, announced a change in its board of directors. The company disclosed in a recent SEC filing that Dr. Thomas Krummel has resigned from the board and as a member of the Compensation Committee, effective immediately as of the board meeting held on Thursday.
Dr. Krummel's departure is not related to any disagreements with the company's operations, policies, or practices. Taking his place, Mr. Thomas M. Prescott has been appointed as a new member and chairperson of the board on the same day. Mr. Prescott, whose term as a Class I director will expire at the company's 2025 annual meeting of stockholders, is recognized as an "independent director" per SEC and Nasdaq rules.
Mr. Prescott brings a wealth of experience, having served as President and CEO of Align (NASDAQ:ALGN) Technology, Inc. from 2002 to 2015 and on its board until May 2021. His career also includes leadership roles at Cardiac Pathways, Inc., Boston Scientific Corporation (NYSE:BSX), Nellcor Puritan Bennett, Inc., GE Medical Systems, and Siemens AG (OTC:SIEGY).
Currently, he serves on the board of a private company and has affiliations with The Navy SEAL Foundation and The Naval Postgraduate School Foundation. Mr. Prescott holds a B.S. in Civil Engineering and a Masters in Management.
In accordance with the company's Non-Employee Director Compensation Program, Mr. Prescott's compensation aligns with the policy outlined in the proxy statement filed on April 22, 2024. Additionally, he will enter into the company's standard indemnification agreement for directors and officers.
This board transition comes as PROCEPT BioRobotics continues to innovate in the field of robotic-assisted surgery. The information is based on a press release statement.
In other recent news, Procept BioRobotics has been making significant strides in the urology sector with an impressive 83% revenue surge in Q1 2024, reaching $44.5 million. This increase was largely driven by sales of its Aquablation therapy and Aquabeam Robotics Systems, despite a reported net loss of $26 million.
Procept BioRobotics' growth strategy and potential for market penetration in the urology sector are underlined by recent developments, including plans to expand the application of Aquablation therapy to include prostate cancer treatment.
Truist Securities recently updated its outlook on Procept BioRobotics, increasing the price target to $79 from the previous $72 while retaining a Buy rating on the stock. Similarly, TD Cowen and Piper Sandler have also shown confidence in the company, raising their price targets for the company's shares to $75.
These adjustments come as Procept BioRobotics demonstrates a robust growth trajectory and potential market expansion. The company's expansion into additional treatment markets, such as cancer and benign prostatic hyperplasia (BPH) management, further justifies the premium valuation. The company's impressive growth profile and strong financial performance position it for continued success in the burgeoning field of urology.
InvestingPro Insights
As PROCEPT BioRobotics Corp (NASDAQ:PRCT) navigates a change in its board of directors, investors and stakeholders may find it valuable to consider the company's financial health and market performance. With a market capitalization of $3.43 billion and a significant revenue growth of 83.44% in the last twelve months as of Q1 2024, PROCEPT BioRobotics demonstrates a robust expansion in its financial metrics. Despite not being profitable over the last twelve months, the company's liquid assets do exceed its short-term obligations, providing a degree of financial flexibility.
InvestingPro Tips suggest that while analysts have revised their earnings upwards for the upcoming period, they do not anticipate the company will be profitable this year. Moreover, PROCEPT has shown a strong return over the last three months, with a 32.99% price total return, and an even more impressive six-month price uptick at 46.57%. These figures underscore a positive trend in the company's share performance, albeit trading at a high Price / Book multiple of 13.14.
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