In 2018, Varian Medical Systems announced it had signed an agreement to acquire all the outstanding shares of Sirtex Medical Limited (ASX: $SRX) ("Sirtex"), an Australia-based global life sciences company focused on interventional oncology therapies. Sirtex was acquired by the company for a huge USD 1.23 billion. The CEO of Sirtex was Nigel Linge and now he is leading another new innovative company Called OncoSil Medical Limited (ASX: $OSL).

Now why are we telling you all about this? Our job as an investor is to connect the dots, so we can map the potential of the company. Now think why a CEO who sold his company for a billion dollars would join the company, it's obvious that he would have seen something in the company.

But the question is can OncoSil really be the next Sirtex? We'll talk about the developments happening in the company, but if you don’t know about OncoSil here’s a little description of it.

OncoSil Medical (ASX: $OSL) 

OncoSil Medical Limited (ASX: $OSL) is a medical company pioneering new innovations in pancreatic cancer. Their flagship product OncoSil focuses on a method called Interventional Oncology, which involves precisely placing tiny radioactive particles directly into tumours. These particles contain Phosphorus-32, which targets cancer cells, and they are used alongside chemotherapy to improve treatment outcomes for cancer patients. 

Clinical outcomes of OncoSil reveal that in advanced cases the survival rate doubles, with a decrease in the pain by 70% and high chances of surgically removing the tumour post-shrinkage. Existing treatments for locally advanced pancreatic cancer offer a dismal chance of surgery (7%). PANCO study showed a jump of 24% with this device, this rate goes as high as 33%, potentially making surgery possible for more patients.

Here are some of the major operational developments of the company.

Major operational developments

• Regulatory approvals: OncoSil has achieved CE Marking in Europe and has been granted a breakthrough device designation by the FDA for the treatment of pancreatic cancer in combination with systemic chemotherapy. Partnerships, similar to Sirtex's collaborations, could also assist with funding and infrastructure needs for Asian market approvals.
• Presence: It is currently approved in the European Union, the United Kingdom, Hong Kong, Singapore, Malaysia, New Zealand, Switzerland, Turkey, and Israel. 
• New Trials: OncoSil device trials progressed significantly, including a G-BA trial in Germany and the TRIPP-FFX Clinical Study. Regulatory approvals for the OSPREY patient registry advanced.
• Expanding reach: Commercialisation momentum increased in Spain, Greece, and Israel; an exclusive distribution agreement was signed for the Turkish market. Various new hospitals were added for the use of the OncoSil device.

In the first half of fiscal year 2024, OncoSil made significant progress in advancing its device through new clinical trials and expanding its usage to additional medical sites. The PANCOSIL Investigator-Initiated Clinical Trial commenced in November 2023, aiming to treat non-progressive locally advanced pancreatic cancer, with 13 patients randomised for participation by the end of the reporting period. 

Moreover, the company saw expansions in device usage across several countries: Spain, where 9 medical centres now treat patients with OncoSil; Italy, with two additional patients treated in Rome and more centres expected to join; Israel, where treatments began in April 2023 and gained approval from major health insurer Clalit; and Greece, where commercial treatments started in December 2023. 

Additionally, 84 German hospitals received approval to discuss funding for OncoSil under the innovation funding program. The company also strengthened its board with the addition of Dr. Gabriel Liberatore, bringing over 25 years of expertise to the team.

Bottom Line

Getting led by a CEO who sold his company for a billion dollars is a plus point for OncoSil, but the device developed by OncoSil is itself revolutionary, having the capabilities to double the survival rate. Company is currently placed in many places and expanding its reach very fast. 

Investors get huge returns when they identify the companies in earlier stages and OncoSil already has proved its strength by positioning itself in major markets but according to our analysis is still undervalued. Certainly, with revolutionary innovation and high expertise in management, OncoSil can really be the next Sirtex