Equity X-Ray: In-Depth Research #21

ClearPoint Neuro's Path To Significant Upside Is Paved With Royalties

Introduction

From my perspective, ClearPoint Neuro (CLPT) holds one of the most attractive asymmetric risk/reward profiles in the med-tech industry today.

The market, valuing the stock at approximately $10.50 today, has an excessive fixation on near-term cash burn and is undervaluing the substantial change in the company’s momentum. In my view, ClearPoint is at the very beginning of monetizing one of its most important assets: ClearPoint is the enabling platform for the neurotherapy industry as a whole. The recent financing should not be viewed as an indication of distress, but rather as an astute capital infusion to support the next stage of growth for the Company.

My analysis, outlined below, leads me to a 24-month conservative price target of $12.75 per share, representing over 20% upside. I am maintaining my "Buy" rating.

Company Background

Before we get into analyzing the numbers, it is important to understand what ClearPoint does, as its value proposition is the elegant and unique solution it found to a big problem.

Barriers to treatment (CLPT August 2025 Presentation)

Let's say a neurosurgeon has to administer a therapy that will change a life. For example, perhaps it will be a tiny electrode for someone with Parkinson's or a small dose of gene therapy for a rare disease. Even though the delivery will go to a very specific small cluster of cells, and the neurosurgeon might be working under the best of circumstances, even a mistake of just 1 millimeter can be devastating.

This is the problem ClearPoint has solved. Basically, ClearPoint is going to provide the most advanced GPS and delivery system for the brain.

Here is a breakdown of how the platform works from component to component:

The Live 3D Map is the MRI: The foundation of the system is actually the act of performing the procedure with a patient inside an MRI scanner. This gives the surgeon a live, real-time, 3D map of the brain.

The GPS software is the ClearPoint & PRISM software: this is their proprietary technology. The software maps out the surgeon's planned path to the target and lays it directly onto the live MRI map. The surgeon sees his target, where he is, and the precise, calculated trajectory to get to the target, all on one screen. Think of it like Google Maps for the brain, where not only does he have a path, but in real time, it's being updated based on the brain's natural shifting.

Neurosurgery Navigation (CLPT August 2025 Presentation)