Phillip Securities Research has initiated coverage on UltraGreen.ai with a BUY rating and target price of US$1.92, highlighting the company’s transformation from a traditional dye and hardware business into an integrated indocyanine green (ICG) platform. The research firm’s valuation is based on DCF analysis, utilising a 10% WACC and 7 times exit multiple. The company is currently trading at FY26e forward P/E of 15.2 times and EV/EBITDA of 16 times.
Company Overview
UltraGreen.ai operates in the fluorescence-guided surgery market, providing ICG dyes and near-infrared imaging hardware to healthcare providers. The company is expanding its business model beyond commodity products to become a comprehensive ICG platform provider, incorporating data analytics and software solutions.
Market Opportunity and Penetration Drivers
Strong market tailwinds are driving greater ICG penetration across both established and emerging surgical procedures globally. Currently, ICG penetration across surgical procedures remains in the low double-digits, with the exception of choroid diagnostics. However, penetration rates are expected to increase by double digits across the majority of procedures using fluorescence-guided surgery by 2028.
The primary driver for this expansion is the growing adoption of ICG as a standard of care, with major surgical societies incorporating ICG into their clinical guidelines. A significant catalyst for UltraGreen.ai will be the expiry of Novadaq’s Breast Sentinel Lymph Node exclusivity in June 2026, enabling the company to file for US approval and potentially capture a US$66.2 million market opportunity at full ICG penetration.
Platform Business Transformation
UltraGreen.ai is strategically expanding from its traditional dye plus hardware business into an integrated ICG platform through its PerfusionWorks quantification software and cloud platform. The PerfusionWorks software is expected to receive Europe MDR regulatory approval by 2H26, with subsequent US FDA filing planned to use the European dataset.
Notably, the software is camera agnostic and can be used with competitors’ imaging hardware, making every near-infrared-capable imaging device a potential customer. This approach addresses the critical obstacle of subjectivity in fluorescence imaging assessment by providing objective and reproducible perfusion data, thereby facilitating standardisation required for broader ICG adoption as a standard of care.
Growth Strategy and Financial Position
The company maintains a robust financial position, with net cash of US$176.1 million and is pursuing growth initiatives worth approximately US$150 million in potential investments or acquisitions across API suppliers, distributors, and lyophilisation companies. UltraGreen.ai also plans to transition from distributor models to direct sales in select markets, reducing distributor fees and enabling direct hospital relationships. This would support the bundling ICG vials with NIR cameras and cross-selling PerfusionWorks software. The research forecasts a 2-year earnings CAGR of 18.6%.
Frequently Asked Questions
Q: What is Phillip Securities Research's recommendation and target price for UltraGreen.ai?
A: Phillip Securities Research has initiated coverage with a BUY rating and a target price of US$1.92, based on DCF analysis using a 10% WACC and 7 times exit multiple.
Q: What is the current ICG penetration rate across surgical procedures?
A: ICG penetration across surgical procedures remains in the low double-digits globally, except for choroid diagnostics. Penetration rates are expected to increase by double digits across the majority of procedures using fluorescence-guided surgery by 2028.
Q: When will UltraGreen.ai be able to enter the US Breast Sentinel Lymph Node market?
A: Following the expiry of Novadaq's Breast SLN exclusivity in June 2026, UltraGreen.ai will be eligible to file for Breast SLN indication in the US for the first time. This represents a US$66.2 million market opportunity at full penetration.
Q: What is PerfusionWorks and when will it receive regulatory approval?
A: PerfusionWorks is UltraGreen.ai's quantification software and cloud platform that provides objective and reproducible perfusion data. It is expected to receive Europe MDR regulatory approval by 2H26, followed by US FDA filing.
Q: How much is UltraGreen.ai planning to invest in growth initiatives?
A: The company is open to approximately US$150 million in potential investments or acquisitions across API suppliers, distributors, and lyophilisation companies to build supply chain resilience and reduce costs.
Q: What is UltraGreen.ai's current financial position?
A: UltraGreen.ai maintains a net cash position of US$176.1 million and is currently trading at FY26e forward P/E of 15.2 times and EV/EBITDA of 16 times.
Q: What is the forecasted earnings growth for UltraGreen.ai?
A: Phillip Securities Research forecasts a 2-year earnings CAGR of 18.6% for UltraGreen.ai.
Q: What advantage does the PerfusionWorks software have in the market?
A: The PerfusionWorks software is camera agnostic and can be used with competitors' imaging hardware, making every near-infrared-capable imaging device a potential customer and addressing the subjectivity obstacle in fluorescence imaging assessment.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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