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.
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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