Cardiovascular Systems Treats First Patient With Teleport

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Following the receipt of the FDA 510(k) clearance for the OrbusNeich Teleport Microcatheter (Teleport), Cardiovascular Systems, Inc. CSII recently announced treating first patient in the United States with the same.

Headquartered in Hong Kong with operations in Shenzhen, China, OrbusNeich is a balloon technologies company, particularly catering to the fields of percutaneous coronary intervention (PCI) and percutaneous transluminal angioplasty (PTA).

Cardiovascular Systems had extended its partnership with OrbusNeich in July 2018 by signing an exclusive international distribution agreement to sell its coronary and peripheral Orbital Atherectomy System (OAS) outside the United States and Japan. OrbusNeich is focused on distributing Cardiovascular Systems' OAS across Europe and Southeast Asia in 2018.

Notably, Cardiovascular Systems is the exclusive distributor of OrbusNeich's balloon products in the United States since January 2018.

Market Prospects

Cardiovascular Systems firmly stands to gain as a distributor of coronary balloons from several favorable trends existing in the peripheral arterial disease (PAD) and coronary arterial disease market spaces. According to estimates delivered by American Heart Association, as many as 8-12 million Americans suffer from PAD. Moreover, an aging population coupled with the increasing incidence of diabetes and obesity is likely to propel the prevalence of PAD further. This, in turn, also offers a huge scope to the unique PAD Orbital Atherectomy System of Cardiovascular Systems.

Per Transparency Market Research, theglobal marketfor coronary heart diseases is expected to witness a surge in demand due to the rising instance of chronic diseases. Going by Technavio data, this market is likely to witness a CAGR of more than 5% by 2021.

Portfolio Expansion to Widen Reach

Cardiovascular Systems is pursuing product improvements and evaluating new technologies to strengthen and broaden its portfolio of powerful micro invasive tools. During the fiscal first quarter, the company continued to gain from increased adoption of its new Diamondback 360 extended length or radial device and the Diamondback 360 with the new GlideAssist feature. The company has also been seeing solid uptake of Sapphire II coronary balloon, OrbusNeich coronary balloons and ZILIENT guidewires.

In November, the company announced treating first patient in Germany with its Stealth 360 Peripheral OAS. Again in the same month, Cardiovascular Systems announced the treatment of first patient with its Diamondback 360 Coronary OAS in Hong Kong.

Management also informed about submitting its 510(k) application to the FDA for the exchangeable peripheral platform, which is planned for launch in late fiscal 2019.

Cardiovascular Systems also plans to expand its business by launching internally developed products and expanding into new geographies outside the United States. In this regard, the company plans to commercialize the radio product or peripheral lesions in calendar year 2018.

Share Price Movement

Over the past year, Cardiovascular Systems has outperformed its industry . The stock has gained 18.7%, against the 5.3% decline of the industry. Launches and partnerships are likely to drive the stock further.

Zacks Rank & Key Picks

Cardiovascular Systems carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Veeva Systems VEEV , Integer Holdings Corporation ITGR and Surmodics, Inc. SRDX .

Veeva Systems' long-term earnings growth rate is estimated at 19.5%. The stock flaunts a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Integer Holdings, with a Zacks Rank #1, has earnings growth rate of 50.8% for the first quarter of 2019.

Surmodics' long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2 (Buy), currently.

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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 Nasdaq, Inc.

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

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