Profound Medical’s Insider Buying Signals a Hidden Gem in Prostate Tech

The prostate treatment market is undergoing a quiet revolution—one that could turn Profound Medical Corp. (TSX: PRN) into a disruptor of $9 billion+ scale. While its stock has faced volatility, the company’s CEO and insiders have been buying shares aggressively, signaling confidence in its MRI-guided ultrasound technology, TULSA-PRO®, as it gains clinical validation and commercial traction. For investors, the question isn’t whether the risks are real, but whether the upside now outweighs them. Here’s why now could be the time to act.

Arun Menawat’s Repeated Bets: A Vote of Confidence in Turbulent Waters

Since 2023, Profound’s CEO and Chairman, Dr. Arun Menawat, has purchased shares repeatedly, even as the stock price fell from CAD $17.41 to $6.63—a decline of over 60%. By May 2025, Menawat owned 587,089 shares, representing 7.9% of the company, with an estimated net worth tied to Profound of at least $4 million. These purchases, including a $100,223 buy at $7.06 in March 2025, are not mere financial transactions—they’re a public endorsement of TULSA-PRO’s potential.

Critically, Menawat’s buys have occurred alongside dilution (a 23% increase in shares outstanding) and quarterly losses (e.g., a $10.7 million net loss in Q1 2025). Yet his persistence suggests a conviction that the company’s long-term prospects—driven by transformative technology and strategic partnerships—will outweigh short-term headwinds.

Clinical Validation and Partnerships: Building a Fortress Around TULSA-PRO®

TULSA-PRO® isn’t just a product; it’s a system. Its FDA clearance in 2019, Medicare code approvals in 2025, and partnerships like the Siemens Healthineers deal (launching the TULSA+ interventional-MRI platform in 2025) are cementing its position as a leader in prostate therapy.

• FDA and Medicare Backing: The TACT trial demonstrated TULSA-PRO®’s safety and efficacy, leading to three Medicare CPT codes (51721, 55881, 55882) with Urology Level 7 reimbursement, higher than competing treatments. This unlocks $12,992–$10,728 per procedure in hospital/ASC settings, positioning Profound to capture premium pricing.
• Siemens Collaboration: The integration with Siemens’ compact MRI scanner reduces costs and expands access to ASCs and office-based labs, where TULSA-PRO® can now operate. This flexibility is a game-changer, as it avoids the high costs and logistical hurdles of hospital-only systems.
• Clinical Versatility: TULSA-PRO® treats 82% of prostate cancer cases, plus BPH and salvage therapy. With 50+ treatment sites globally and partnerships like Siemens, Profound is scaling its footprint while competitors lag in innovation.

Market Opportunity: A $9 Billion+ Addressable Market, Underpenetrated and Growing

The prostate treatment market isn’t just large—it’s underserved. Combining prostate cancer and BPH therapies, the global market is valued at over $27 billion by 2025 (per recent analyses). TULSA-PRO® targets both segments, with its ability to perform whole-gland ablations, focal therapy, and BPH procedures under real-time MRI guidance.

Consider the numbers:
- Prostate Cancer Therapeutics: $14.2 billion in 2025, growing at 8.4% CAGR through 2030.
- BPH Surgical Treatments: $13.28 billion in 2025, with Asia-Pacific as the fastest-growing region.

Profound’s CAPTAIN trial data (showing zero blood loss and faster recovery than surgery) and its TULSA-AI® modules (expanding into BPH) are key to capturing this market. The company’s 7.9% insider ownership aligns with this ambition, ensuring leadership’s interests are tightly coupled with shareholder returns.

Balancing Risks and Rewards: Why the Upside Outweighs the Downside

Profound isn’t without risks. Its Q1 2025 net loss and cash burn ($46.4 million in reserves) are red flags. However, the revenue trajectory is compelling: a year-over-year jump of 82% to $2.6 million in Q1 2025, with recurring revenue (consumables, leases) now 69% of total sales. This suggests a scalable business model as TULSA-PRO® gains adoption.

Moreover, the $9 billion addressable market isn’t fully reflected in Profound’s current valuation. At $6.63 per share, the company’s market cap is a fraction of its potential. If it captures just 5% of the prostate treatment market, its valuation could skyrocket.

Conclusion: The Time to Act Is Now

Profound Medical is at a pivotal juncture. Its insider buying, clinical validation, and strategic partnerships form a trifecta of credibility. While the stock’s decline has created skepticism, it has also set up a low-risk entry point for investors willing to look past short-term losses.

The $9 billion market isn’t going anywhere, and neither is TULSA-PRO®’s technological edge. With Medicare codes driving reimbursement and Siemens enabling broader adoption, Profound’s path to profitability is clear—if it can execute. For investors seeking a disruptive medtech play in an underpenetrated space, this is a once-in-a-decade opportunity to buy in before the market catches on.

The question isn’t whether Profound can succeed—it’s whether you can afford to miss it.