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Cardiovascular Systems (CSII): Portfolio Robust, Woes Stay
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On Sep 12, 2016, we issued an updated research report on Cardiovascular Systems Inc. . This Minnesota-based medical device manufacturer develops and commercializes innovative solutions to treat patients suffering from peripheral and coronary arterial diseases, including those with arterial calcium.
Post the company’s promising second-quarter 2016 results, we are optimistic about several favorable trends in the peripheral artery diseases as well coronary artery disease markets which should drive further growth, going forward. According to estimates delivered by the American Heart Association (AHA), as many as 8−12 million Americans suffer from PAD. Moreover, an aging population, coupled with increasing incidence of diabetes and obesity, is likely to propel the prevalence of PAD further. This offers huge scope for the unique PAD OAS system of Cardiovascular Systems.
We believe that the company stands to benefit from its ongoing multiple clinical trials to study the most challenging patient populations with an aim to illustrate the versatility and efficacy of its technology. The company’s clinical trial LIBERTY 360 has advanced well and a 30-day data from this study will be soon presented in a late-breaking presentation at the Amputation Prevention Symposium. The study includes all commercially available technologies, including the company’s Diamondback 360 Peripheral Orbital Atherectomy System.
Cardiovascular Systems’ large and expanding portfolio is another upside. In Jun 2016, the company submitted the Shonin application in Japan for approval of its second-generation coronary device, the Diamondback Coronary OAS Micro Crown (to treat calcified coronary arteries). The commercialization is expected in 2018.
On the flip side, Cardiovascular Systems bears a long history of net losses incurred since its inception in 1989. There seems to be no respite, at least in the near term, which makes it worse. In recent times, the company incurred net losses of $35.3 million and $32.8 million in fiscal 2014 and fiscal 2015, respectively.
Although Cardiovascular Systems plans to launch its products in the international markets in the future, uncertainty with regard to regulatory approvals and sales potential persists. Moreover, the company expects to incur substantial expenses relating to its international expansion, which will weigh on its operations. Further, it faces tough competitive headwinds across the medical device industry.
The stock currently carries a Zacks Rank #3 (Hold).
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Cardiovascular Systems (CSII): Portfolio Robust, Woes Stay
On Sep 12, 2016, we issued an updated research report on Cardiovascular Systems Inc. . This Minnesota-based medical device manufacturer develops and commercializes innovative solutions to treat patients suffering from peripheral and coronary arterial diseases, including those with arterial calcium.
Post the company’s promising second-quarter 2016 results, we are optimistic about several favorable trends in the peripheral artery diseases as well coronary artery disease markets which should drive further growth, going forward. According to estimates delivered by the American Heart Association (AHA), as many as 8−12 million Americans suffer from PAD. Moreover, an aging population, coupled with increasing incidence of diabetes and obesity, is likely to propel the prevalence of PAD further. This offers huge scope for the unique PAD OAS system of Cardiovascular Systems.
We believe that the company stands to benefit from its ongoing multiple clinical trials to study the most challenging patient populations with an aim to illustrate the versatility and efficacy of its technology. The company’s clinical trial LIBERTY 360 has advanced well and a 30-day data from this study will be soon presented in a late-breaking presentation at the Amputation Prevention Symposium. The study includes all commercially available technologies, including the company’s Diamondback 360 Peripheral Orbital Atherectomy System.
Cardiovascular Systems’ large and expanding portfolio is another upside. In Jun 2016, the company submitted the Shonin application in Japan for approval of its second-generation coronary device, the Diamondback Coronary OAS Micro Crown (to treat calcified coronary arteries). The commercialization is expected in 2018.
On the flip side, Cardiovascular Systems bears a long history of net losses incurred since its inception in 1989. There seems to be no respite, at least in the near term, which makes it worse. In recent times, the company incurred net losses of $35.3 million and $32.8 million in fiscal 2014 and fiscal 2015, respectively.
Although Cardiovascular Systems plans to launch its products in the international markets in the future, uncertainty with regard to regulatory approvals and sales potential persists. Moreover, the company expects to incur substantial expenses relating to its international expansion, which will weigh on its operations. Further, it faces tough competitive headwinds across the medical device industry.
The stock currently carries a Zacks Rank #3 (Hold).
Key Picks in the Sector
Some better-ranked stocks in the medical sector are GW Pharmaceuticals plc , NuVasive, Inc. and Quidel Corp. (QDEL - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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