The challenge for Sphere Medical over the next 12 months is to transition a promising technology platform into a viable commercial operation. The receipt of the CE Mark in late-16 led to Proxima 4 being launched across several major European markets. An increasing number of hospitals have begun clinical evaluations, and the focus over the coming year is translating these expressions of interest into meaningful sales. We remind that we estimate that Sphere Medical will likely have a funding requirement of £7-8m (excluding the Silicon Valley Bank loan facility) in 2017. Our valuation, based on a three-phase DCFbased model, remains unchanged at £30.2m, equivalent to 21.3p per share.
