Leading cardiac assist devices maker -
) has won a new reimbursement approval for its Impella product in
the Netherlands. Through a process known as the Diagnosis
Treatment Combinations (Diagnose Behandeling Combinaties; DBCs),
which is similar to the Medicare Diagnosis-Related Group (DRG)
system in the U.S., hospitals will receive funding for the use of
the Impella technology to treat heart ailments.
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According to the World Health Organization (WHO), the Netherlands
ranks among the top nations in the world providing excellent
healthcare services. The Amsterdam Medical Center has conducted
an extensive research on the clinical and cost-efficiency of the
Impella device. The reimbursement approval further acknowledges
the superiority of Abiomed's technology in Europe.
Earlier, in Mar 2013, Abiomed had achieved several new
reimbursement milestones. National players such as Humana,
UnitedHealthcare, Independence Blue Cross and Capital BlueCross
have included Impella in their coverage decision. New Impella
policies in the payers' commercial and/or Medicare Advantage
plans have been incorporated in the latest coverage decisions.
Mass.-based Abiomed is a medical device company with a blue
streak growth path. Given its unique technology, Abiomed enjoys
strong demand for its Impella products. The company posted record
revenues in fiscal 2013. Moreover, patient support reached a
record high in the same year. This is evident from 31%
year-over-year growth in global Impella sales in fiscal 2013,
which was above the company's expected guidance.
Both the Impella CP and RP are considered future growth drivers
for the company. Multiple near-term drivers, including new
products and clinical trials, should further boost the use of
Abiomed currently has a Zacks Rank #3 (Buy). Other stocks in the
medical device sector that are currently performing well include
). Cyberonics and Natus carry a Zacks Rank #1 (Strong Buy), while
Intuitive is a Zacks Rank #2 (Buy) stock.