Back to top

Image: Bigstock

Cardiovascular Systems Stealth 360 Peripheral OAS Goes Global

Read MoreHide Full Article

Cardiovascular Systems, Inc. recently announced the first global commercial use of its minimally-invasive Stealth 360Peripheral Orbital Atherectomy System (OAS) in Hong Kong.

Stealth 360 OAS is used to treat patients with severely calcified peripheral arteries or at risk for subsequent complications, including repeat interventions and amputation.

Cardiovascular Systems recently extended its partnership with OrbusNeich by signing an exclusive international distribution agreement to sell its coronary and peripheral OAS outside the United States and Japan. OrbusNeich focused on distributing Cardiovascular Systems’ OAS in multiple countries in 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 stands to gain as a distributor of coronary balloons from several favorable trends existing in the peripheral arterial disease (PAD) and coronary arterial disease markets. According to estimates 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 result in more PAD cases. This in turn is likely to propel demand for Cardiovascular Systems’ OAS.

Per a report by Transparency Market Research, the global market for coronary heart diseases therapeutics is expected to witness a surge in demand due to the rising incidence 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 has long been expanding its product portfolio to enhance market reach and versatility. Currently, the company is working on product improvement and evaluating new technologies to strengthen and broaden its portfolio of effective micro invasive tools. In keeping with such plans, this February, the company announced the commercial launch of Diamondback 360 Coronary OAS Micro Crown in Japan.

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

In July, Cardiovascular Systems announced partnerships and broadening of its product portfolio. The company collaborated with Aerolase Corp to develop a laser atherectomy device for treating multiple forms of arterial disease conditions better.

Share Price Movement

Over the past six months, Cardiovascular Systems has outperformed its industry. The stock has gained 57.5% in comparison to the 13.6% rise of the industry. Launches and partnerships are likely to drive the stock higher.

Zacks Rank and Key Picks

Cardiovascular Systems carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .

Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock currently carries a Zacks Rank of 2 (Buy).

Amedisys’ long-term expected earnings growth rate is 18.6%. The stock holds a Zacks Rank #1 (Strong Buy) at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Amedisys, Inc. (AMED) - $25 value - yours FREE >>

Intuitive Surgical, Inc. (ISRG) - $25 value - yours FREE >>

Masimo Corporation (MASI) - $25 value - yours FREE >>

Published in