ABIOMED Impella Data Show Significant Rise in Survival Rates
ABIOMED, Inc.’s ABMD flagship Impella has been proved to significantly increase cardiogenic shock survival and heart recovery in patients. Data exhibits that survival rates have increased from 51% to 67% since the device’s FDA Pre Market Approval for treating cardiogenic shock.
However, this latest development could not drive the Zacks Rank #2 (Buy) stock’s shares, which lost 0.5% to $282.87 at close.
Notably, this latest development fortifies the MedTech giant’s foothold in the U.S. cardiovascular devices market.
Impella in Focus
Impella, the world’s smallest heart pump, is ABIOMED’s flagship product line. The company’s Impella 2.5, Impella RP, Impella 5.0 and Automated Impella Controller deserve a mention in this regard.
Notably, the product has been driving the company’s top line since inception.
Management confirmed that ABIOMED is currently investing in the commercial distribution to prepare for the expansion of Impella CP, Impella Connect, Impella 5.5 and Impella RP.
Interestingly, ABIOMED’s new technology called Impella Connect has been launched at 36 U.S. hospitals in recent times.
In the last reported quarter, Impella heart pump revenues jumped 31% year over year.
Per research by CDC, nearly 610,000 people die of heart diseases each year in the United States.
Statista validates that the U.S. cardiovascular devices market is expected to reach a worth of $15.7 billion by 2021.
Thus, the latest development has been a well-timed one for ABIOMED.
We believe positive developments such as these would drive the shares of ABIOMED which have declined 3.2% against the industry’s 13.6% rally in a year’s time. The current level also compares unfavorably with the S&P 500 index’s 8% rise.
Other Key Picks
Other top-ranked stocks in the broader medical space are Varian Medical Systems VAR, Masimo Corporation MASI and Penumbra, Inc. PEN, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Varian Medical’s long-term earnings growth is projected at 8%.
Masimo’s long-term earnings are expected to grow 15.6%.
Penumbra’s long-term earnings growth rate is estimated at 20.9%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Click to get this free report
Penumbra, Inc. (PEN): Free Stock Analysis Report
Masimo Corporation (MASI): Free Stock Analysis Report
Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.