IRIX - Iridex's Strategic Review Process Should Bear Fruit 'Soon'
2024-03-28 19:12:12 ET
Summary
- Iridex Corporation is undergoing a strategic review process to unlock shareholder value.
- The company is likely to sell its retina business line and potentially parse it out in more than one transaction "soon."
- The glaucoma business line is highly promising but likely needs to be in the hands of a bigger company to reach its full potential.
- The entire business may be worth double the current share prices, in line with what Topcon paid three years ago to acquire a 10% stake.
Iridex Corporation ( IRIX ), a global leader in ophthalmic medical technology for the treatment of retinal and glaucoma diseases, announced last year that they had begun a "strategic review" to "unlock shareholder value." Shares of the company rallied after that announcement, reaching a high of over $3.00/share in mid-October 2023. However, the stock took a hit when the company filed an 8-K with the SEC, in which they expressed concern about the reimbursement of a certain procedure and, consequently, withdrew their FY23 guidance. The stock quickly dropped back to the $1.70/share region. Following that drop, I wrote an article here on Seeking Alpha outlining why the drop was a good buying opportunity for those who understood the real value of IRIX's business. The stock is now up around 40% since that article (shares had already recovered to the $2.10/share area when the article was published), and I will present now why I still believe IRIX shares have plenty of upside left....
Iridex's Strategic Review Process Should Bear Fruit 'Soon'