Cardiovascular Systems, Inc. ( CSII Quick Quote CSII - Free Report) recently completed a minority investment and inked an acquisition option agreement with CarePICS, LLC. Notably, Cardiovascular Systems also has an exclusive option to acquire the remaining equity in CarePICS.
The terms of the Cardiovascular Systems’ minority investment in CarePICS have been kept under wraps.
The recent development will enhance Cardiovascular Systems’ Peripheral Artery Disease (PAD) offering and will improve patient’s outcome.
CarePICS at a Glance
CarePICS is a Raleigh, NC-based telehealth company that provides virtual care platform, built to enhance patient outcomes for those who suffer from PAD, Critical limb ischemia (CLI) and lower extremity wounds.
CarePICS offers a secure iOS, Android and Web platform which enables podiatrists, skilled nursing facilities, home health agencies, wound care providers and primary care physicians to get patient information, wound images and measurements.
CarePICS acts as a bridge between physicians and their patients. The company’s platform offers effective multidisciplinary case management, before and after vascular treatment.
Significance of the Agreement
Being a leader in the treatment and study of patients with PAD and CLI, Cardiovascular Systems is optimistic about its investment in a digital SaaS product and data-driven solution to enhance patient outcomes. Per Cardiovascular Systems’ management, CarePICS will advance patient access to the suitable treatment at the right time, thereby leading to better care and reduced amputations.
Moreover, the outcome data gathered through the CarePICS platform throughout various providers, patients, treatments and care plans over a period of time can turn into an industry-leading source of actionable, clinical insights and further boost patient care.
In March 2021, Cardiovascular Systems acquired a line of peripheral support catheters from WavePoint Medical, LLC. Notably, 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.
During the same month, Cardiovascular Systems announced the treatment of the first U.S. patient with its WIRION Embolic Protection System. Notably, the device offers an efficient approach for lower extremity embolic protection.
Industry Prospects Per a report by Allied Market Research, the peripheral artery disease market was worth $3.52 billion in 2019 and is expected to reach $5.72 billion by 2027, at a CAGR of 8.5%.
Considering the market growth prospects, Cardiovascular Systems’ recent development is well-timed.
Shares of the company fell 9% in a year’s time against the
industry’s growth of 19.7%. 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
InMode Ltd. ( INMD Quick Quote INMD - Free Report) , Owens & Minor, Inc. ( OMI Quick Quote OMI - Free Report) and Envista Holdings Corporation ( NVST Quick Quote NVST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of Zacks #1 Rank stocks here. InMode has a projected long-term earnings growth rate of 12.4%.
Owens & Minor has an estimated long-term earnings growth rate of 15%.
Envista Holdings has an expected long-term earnings growth rate of 24%.
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