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Cardiovascular Systems' (CSII) New Buyout Boosts CAD/PAD Line

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Cardiovascular Systems, Inc. recently announced the acquisition of a line of peripheral support catheters from WavePoint Medical, LLC. Notably, Cardiovascular Systems looks to introduce the acquired catheters as its new ViperCross line in the first half of its fiscal year ending Jun 30, 2022.

For investors’ note, WavePoint Medical LLC is a Utah-based medical device development company dedicated on high-performance micro-catheters for the interventional cardiovascular markets.

The recent product acquisition is likely to boost Cardiovascular Systems’ existing peripheral artery disease (PAD) and coronary artery disease (CAD) portfolio.

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As part of this agreement, WavePoint will contribute to develop a portfolio of specialty catheters for Cardiovascular Systems that is used in the treatment of chronic total occlusions (CTO) and complex percutaneous coronary intervention (PCI) procedures. Notably, the company is expecting the commercial availability of these specialty catheters in the fiscal year ending Jun 30, 2023.

Significance of the Buyout

Per management of Cardiovascular Systems, the acquisition of these peripheral support catheters will enable the company to soon offer a comprehensive portfolio of products for the treatment of peripheral artery disease, including atherectomy, balloon catheters, guidewires, support catheters and embolic protection.

Additionally, the successful progress of a portfolio of CTO products will expand Cardiovascular Systems’ existing offering of coronary support products.

Notably, the addition of these new products in Cardiovascular Systems’ portfolio will extend the company’s ability to facilitate physicians to enhance the outcomes for patients undergoing complex peripheral and coronary interventions procedure.

Notable Developments

In March 2021, Cardiovascular Systems announced the treatment of first patients with the WIRION Embolic Protection System in the United States. Notably, WIRION is a distal embolic protection filter used to capture thrombus and debris that can be associated with all types of peripheral vascular intervention procedures, including atherectomy.

Earlier in February 2021, Cardiovascular Systems announced the treatment of first patient in Europe with its Diamondback 360 Coronary Orbital Atherectomy System (OAS). Notably, Diamondback 360 Coronary OAS simplifies treatment with a unique mechanism to successfully modify severe calcium and optimize stent performance, which helps physicians treat their patients suffering from calcific coronary artery disease.

Industry Prospects

Per a report by Grand View Research, the global catheters market size was valued at $45.26 billion in 2020 and is expected to see a CAGR of 6.4% by 2028. A high prevalence rate of chronic disorders leading to hospitalization is driving the market.

Considering the market growth, Cardiovascular Systems’ recent acquisition of peripheral support catheters is well-timed.

Price Performance

Shares of the company have gained 22.3% in a year’s time compared with the industry’s 47.2% rally.

Zacks Rank and Key Picks

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

A few better-ranked stocks from the broader medical space are Envista Holdings Corporation (NVST - Free Report) , Meridian Bioscience, Inc. and Owens & Minor, Inc. (OMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Envista has an estimated long-term earnings growth rate of 24.4%.

Meridian Bioscience has a projected long-term earnings growth rate of 55.1%.

Owens & Minor has an estimated long-term earnings growth rate of 48.9%.

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