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[email protected] | 612.492.8872 Novadaq Technologies, Inc. Healthcare- Dia g nostic Ima g in g June 22, 2012 Company Description: Novadaq Technologies, Inc. develops, manufactures and markets real-time fluorescence imaging products used by surgeons in open, minimally invasive and interventional surgical procedures to visualize blood flow and assess the quality of blood perfusion. The company was founded in 2000 and is based in Mississauga, Ontario, Canada. SPY no longer a secret, initiating with STRONG BUY, $8.50 PT (NVDQ - $5.57) STRONG BUY Key Points Financial Summary Novadaq’s proprietary SPY imaging technology revolutionizes blood flow and perfusion assessment. SPY imaging has broad applicability and a potential US consumable revenue opportunity of ~$1.8 billion. Rev(mil) 2011A 2012E 2013E Mar $2.6A $4.8A $8.2E Partnerships with industry leaders validate the strength June $3.6A $4.7E $9.6E of the company’s FDA-approved technology, while Sept $4.3A $5.7E $11.1E Novadaq retains a highly attractive market for itself. Dec $5.0A $7.8E $13.0E Potential “arms race” developing. FY $15.3A $23.0E $41.8E Initiating with STRONG BUY rating and $8.50 price P/Sales 14.5x 9.6x 5.3x target (7.0x 2013 EV/Sales). Novadaq’s proprietary SPY imaging technology revolutionizes blood flow and perfusion assessment. Their unique technology allows surgeons to visualize blood flow and perfusion in real-time, which greatly enhances the ability to make proper clinical decisions during surgeries.