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ABIOMED Impella Data Show Significant Rise in Survival Rates

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ABIOMED, Inc.’s 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.

Market Prospects

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.

Price Performance

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 , Masimo Corporation (MASI - Free Report) and Penumbra, Inc. (PEN - Free Report) , 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%.

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