ABIOMED, Inc. (ABMD): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
ABIOMED is a medical device company with a blue streak growth path. The company enjoys a strong demand for its Impella products. Multiple near-term drivers, including new products and clinical trials, should further boost the use of Impella. ABIOMED's fiscal 2014-fourth quarter earnings of $0.09 were in line with the Zacks Consensus Estimate while revenues of $50.4 million marginally lagged the mark. The company expects revenues to grow 11.4 to 15.2% to $205 $212 million for fiscal 2015. Increasing pressure on margins due to higher costs and expenses is a matter of concern. As a result, we reiterate our Neutral recommendation with a price target of $23.00.

Overview:

Headquartered in Danvers, Mass. and founded in 1981, ABIOMED, Inc. (ABMD) is engaged in developing, manufacturing and marketing of medical products, designed to assist or replace the pumping function of the failing heart. ABIOMED's products are mainly sold in the U.S., Canada, Europe and Japan.

ABIOMED's products can be used in a range of clinical settings, including use by heart surgeons for patients in profound cardiogenic shock. Profound cardiogenic shock is starvation of the cells, or inadequate blood flow to the organs as a result of an imbalance between oxygen supply and oxygen demand. Shock results due to a weakened heart that is unable to pump blood as efficiently as it once did, and commonly occurs after a heart attack. The company's products can also be used by interventional cardiologists for patients who are in pre-shock or in need of prophylactic support in the cardiac catheterization lab (cath lab).

There are two primary types of devices used in the cath lab and surgery suite for circulatory support for pre-shock and profound shock patients: intra-aortic balloons (IABs) and ventricular assist devices (VADs) and Impella pumps.

Intra-aortic balloons (IABs) are inflatable balloons inserted by a catheter that are used as an initial line of therapy in the cath lab or the surgery suite for patients with diminished heart function. Ventricular assist devices (VADs) are mechanical devices, which help in the pumping function of the failing heart.

ABIOMED has a broad portfolio of products such as the BVS 5000 biventricular support system (BVS), the AB5000 circulatory support system (AB5000), the iPulse Circulatory Support System, and Impella pumps (Impella 2.5, Impella 5.0, Impella cVAD, Impella LD and the latest Impella CP). The iPulse multi-purpose console supports the IAB, the AB5000 and the BVS 5000 systems. The company also developed the AbioCor Implantable Replacement Heart for severe biventricular heart failure when chronic patients are ineligible for a heart transplant. The Impella RP and Symphony are two new products that are currently undergoing pivotal clinical investigations and are not yet commercially available.

ABIOMED's primary cath lab products include the Impella pumps that are used for support of acute pre-shock patients or for prophylactic support of patients undergoing high-risk percutaneous coronary intervention. The new Impella CP (also known as Impella cVAD) received U.S. Food and Drug Administration approval (FDA) as well as CE Mark and the Health Canada clearance in the European Union and Canada, respectively.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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