Intersect ENT, Inc . XENT received approval from the FDA for SINUVA Sinus Implant. The company has been focused on developing innovative therapies for chronic sinusitis patients.
SINUVA is an exclusive approach to treat recurrent nasal polyp disease in patients who have undergone ethmoid sinus surgery. Per management, approximately 635,000 Americans have gone through these surgeries and are looking for treatments to cure side effects.
Intersect ENT expects SINUVA to be costlier than other products in the portfolio. However, higher price will not dent the company's gross margins in the upcoming fourth quarter. It has a long-term expected earnings growth rate of 25%.
Notably, nasal polyps are inflammations along the lining of nasal passage or sinus resulting in congestion, infections and low sense of smell. SINUVA is Intersect ENT's fourth commercial product, which is likely to be introduced to physicians across the country in the following months.
Shares Shine Bright
Year to date, Intersect ENT has had a solid run on the bourses, trading above the market at large. The company returned 163.2% comparing favorably with the industry 's rally of only 23.2%. Also, the current return is higher than the S&P 500 index's increase of 21.7% over the same time frame. The stock has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Market Trends Buoy Optimism
Introduction of new technologies and rapid innovations in healthcare market are creating opportunities for companies that are striving to make profits in the sinusitis treatment market. Per a report by Persistence Market Research, the Center of Disease Control and Prevention (CDC) has revealed that 11.7 million people in the United States get diagnosed with chronic sinusitis on a regular basis.
Considering the solid prospects of the market, we believe that Intersect ENT will gain strong market traction in the upcoming days. A few other major market players engaged in the manufacturing of treatment products for sinusitis include Sanofi SNY , Abbott Laboratories ABT and Eli Lilly And Company LLY .
Intersect ENT's fourth-quarter operating expenses are likely to rise, thanks to the one-time expenses related to the SINUVA launch, production of demo units and costs related to market-access infrastructure.
Among latest developments, PROPEL Contour is expected to be an important driver for Intersect ENT. Products like PROPEL and PROPEL mini are drug-eluting implants for patients suffering from chronic sinusitis. It offers products and therapies for ear, nose and throat surgeons to improve treatment of patients with chronic diseases.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis Report Intersect ENT, Inc. (XENT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research