Leading cardiac assist devices maker - Abiomed (ABMD - Free Report) has won a new reimbursement approval for its Impella product in the Netherlands. Through a process known as the Diagnosis Treatment Combinations (Diagnose Behandeling Combinaties; DBCs), which is similar to the Medicare Diagnosis-Related Group (DRG) system in the U.S., hospitals will receive funding for the use of the Impella technology to treat heart ailments.
According to the World Health Organization (WHO), the Netherlands ranks among the top nations in the world providing excellent healthcare services. The Amsterdam Medical Center has conducted an extensive research on the clinical and cost-efficiency of the Impella device. The reimbursement approval further acknowledges the superiority of Abiomed’s technology in Europe.
Earlier, in Mar 2013, Abiomed had achieved several new reimbursement milestones. National players such as Humana, UnitedHealthcare, Independence Blue Cross and Capital BlueCross have included Impella in their coverage decision. New Impella policies in the payers’ commercial and/or Medicare Advantage plans have been incorporated in the latest coverage decisions.
Mass.-based Abiomed is a medical device company with a blue streak growth path. Given its unique technology, Abiomed enjoys strong demand for its Impella products. The company posted record revenues in fiscal 2013. Moreover, patient support reached a record high in the same year. This is evident from 31% year-over-year growth in global Impella sales in fiscal 2013, which was above the company’s expected guidance.
Both the Impella CP and RP are considered future growth drivers for the company. Multiple near-term drivers, including new products and clinical trials, should further boost the use of Impella.
Abiomed currently has a Zacks Rank #3 (Buy). Other stocks in the medical device sector that are currently performing well include Cyberonics , Natus Medical (BABY - Free Report) and Intuitive Surgical (ISRG - Free Report) . Cyberonics and Natus carry a Zacks Rank #1 (Strong Buy), while Intuitive is a Zacks Rank #2 (Buy) stock.