Evidence Reveals Pulse Biosciences Is A Joke – It’s Years Late To The Pulsed Field Ablation Market And Its “Nanosecond” Technology Is Impractical And Not Novel – $1 Price Target – White Diamond Research
Pulse Biosciences (PLSE) faces critical challenges in cardiac ablation technology, burning $15M quarterly with minimal revenue, unproven nsPFA technology, and significant bankruptcy risks in competitive medical device market.
Pulse Biosciences (PLSE) has pivoted from a failed dermatology device to an unproven cardiac ablation technology that experts say is technically inferior, years behind competitors, and backed by misleading claims—all while burning $15M quarterly with minimal cash reserves.
Stock info:
- Ticker: PLSE (NASDAQ)
- Position: White Diamond Research is short PLSE
Why it matters:
- After burning $200M+ over 5 years with negligible revenue, PLSE has abandoned its dermatology-focused CellFX system to pursue cardiac ablation despite having no experience in this field
- PLSE's nanosecond Pulsed Field Ablation (nsPFA) technology is fundamentally flawed: it either delivers insufficient energy at lower voltages or faces insurmountable insulation challenges at higher voltages
- The company holds just one minor cardiac ablation patent versus competitors' 30+ patents, with Boston Scientific, Medtronic, and Abbott already dominating the market with clinically-validated technologies
- Management has consistently made misleading claims about technology capabilities and commercial prospects while failing to deliver meaningful results
- With a $15M quarterly burn rate and precarious financing, the company faces imminent bankruptcy risk without another capital infusion
Zoom in:
- PLSE's "revenue" of $2M from CellFX came primarily from giving away devices for free while recording them as sales
- The company's single cardiac ablation patent (US 11571569) was only granted in February 2023 and fails to cover critical design elements
- Billionaire Robert Duggan owns 69% of shares and recently converted a $65M loan into stock, suggesting potential preparation for selling
- PLSE claims their technology uses "20x lower thermal energy" than competitors, but experts note this actually indicates insufficient ablation power
- The company's 510(k) regulatory strategy for a cardiac surgical clamp lacks efficacy claims and is insufficient to compete with PMA-approved devices
- Management has repeatedly claimed "pivotal" and "groundbreaking" developments that never materialized into commercial success
FAQs:
What is Pulse Biosciences' core technology?
Pulse Biosciences initially developed Nano Pulse Stimulation (NPS) technology for dermatology applications but has pivoted to nanosecond Pulsed Field Ablation (nsPFA) for cardiac ablation, particularly targeting atrial fibrillation treatment.
Why does White Diamond Research believe PLSE's technology is inferior?
Their analysis shows that nanosecond pulses face a fundamental physics problem: at lower voltages, they don't effectively kill cells, while at higher voltages (needed for ablation), they create insurmountable insulation and arcing challenges for catheter designs.
Who are PLSE's main competitors in the cardiac ablation market?
Boston Scientific (which acquired Farapulse), Medtronic, and Abbott dominate the market with established technologies, extensive patent portfolios, and robust clinical data—advantages PLSE lacks entirely.
What is the significance of Robert Duggan's involvement with PLSE?
Billionaire Duggan owns 69% of PLSE shares and recently converted a $65M loan into equity at $6.51/share. White Diamond Research suggests this conversion may indicate preparation for selling shares rather than confidence in the company.
What evidence supports claims that PLSE management has been misleading investors?
The report cites multiple earnings calls where management made overly optimistic projections about technology capabilities and commercial prospects that consistently failed to materialize, alongside claims about their cardiac technology that lack clinical validation.
What is the financial outlook for PLSE according to the research?
With a quarterly burn rate of approximately $15M and limited cash reserves, White Diamond Research believes PLSE faces imminent bankruptcy risk without additional financing, estimating the company's true value at less than $50M (a 90% discount to its market cap).
What regulatory hurdles does PLSE face for its cardiac technology?
PLSE plans to pursue a generic 510(k) submission for a cardiac surgical clamp, but this pathway lacks efficacy claims needed to compete with PMA-approved devices that have undergone extensive clinical trials—a process PLSE would need years to replicate.
How does PLSE's patent position compare to competitors?
PLSE has only one cardiac ablation patent granted in February 2023, which doesn't cover key design elements. In contrast, competitors like Farapulse hold over 30 patents specifically for PFA technology.
Disclaimer
This summary is based on a report by White Diamond Research. For the full, detailed analysis, please refer to the original source material: https://whitediamondresearch.com/research/evidence-reveals-pulse-biosciences-is-a-joke-its-years-late-to-the-pulsed-field-ablation-market-and-its-nanosecond-technology-is-impractical-and-not-novel-1-price-targ/
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