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Merit Medical's (MMSI) Latest Launch to Boost Patient Outcome

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Merit Medical Systems, Inc. (MMSI - Free Report) recently announced that it has launched the ReSolve Thoracostomy Tray. The new tray has all products needed for performing a thoracostomy — a minimally-invasive technique that enables patients to opt out of an open surgical procedure to drain chest fluids or air. Each tray component is placed in order of use, which supports procedural efficiency and ease of use.

The latest launch is expected to be a significant addition to Merit Medical’s Vascular-Peripheral Drainage business, thereby solidifying its foothold in this niche space.

Significance of the Launch

Thoracic damage, common with traumatic injuries, is a primary contributing factor leading to a patient’s death. For most of these patients, thoracostomy can help lower morbidity and mortality.

Thoracostomy is performed on patients by inserting a catheter through the skin and chest wall into the pleural space (an area between the chest wall and lungs) and draining accumulated air and fluid. Thoracostomy can also be performed for various other reasons, like the accumulation of excess air and fluid from post-surgical wounds and cancer, to name some.

Per a medical expert, thoracostomy can not only be livesaving, but also improve patient comfort. Given this, having a well-designed tray with easy and stepwise access to all the products needed for the procedure may simplify the procedure and reduce treatment time, which is crucial in acute situations.

Per management, the ReSolve Thoracostomy Tray has been designed keeping in mind the practicality of the purpose that simultaneously improves patient experience and simplifies procedures for physicians.

Industry Prospects

Per a report by Grand View Research, the global minimally-invasive thoracic surgery market was valued at $2.3 billion in 2020 and is anticipated to expand at a CAGR of 8.7% between 2021 and 2028. Factors like the increasing prevalence of chronic diseases such as lung cancer, growing preference for minimally-invasive procedures and technological advancements are likely to drive the market.

Given the market potential, the latest launch is expected to provide a significant boost to Merit Medical’s business globally.

Recent Developments

This month, Merit Medical received the FDA’s clearance for the SCOUT Bx Delivery System, the first wire-free breast localization solution that can be deployed at the time of stereotactic or MRI-guided biopsy.

Last month, the company received the FDA’s breakthrough device designation for its product, Embosphere Microspheres, for the Genicular Artery Embolization indication.

Price Performance

Shares of the company have gained 12.1% in the past year compared with 4.1% growth of the industry and a 6.2% rise of the S&P 500 composite.

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Zacks Rank & Key Picks

Currently, Merit Medical carries a Zacks Rank #3 (Hold).

A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Abiomed, Inc. and DexCom, Inc. (DXCM - Free Report) .

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has gained 39.7% against the industry’s 58.5% fall over the past year.

Abiomed, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 20%. ABMD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 9.2%.

Abiomed has lost 8.7% compared with the industry’s 6.6% fall over the past year.

DexCom has an estimated long-term growth rate of 17.6%. DXCM’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 26.5%. It currently has a Zacks Rank #2.

DexCom has gained 23.6% against the industry’s 6.6% fall over the past year.


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