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Merit Medical Stock Falls Despite Positive WRAPSODY Trial Results

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Merit Medical Systems, Inc(MMSI - Free Report) announced favorable 6-month results from the randomized arteriovenous (AV) fistula arm of its pivotal WRAPSODY Arteriovenous Access Efficacy (WAVE) trial. The data were presented at the Cardiovascular and Interventional Radiological Society of Europe.

The WAVE trial is evaluating WRAPSODY, a cell-impermeable endoprosthesis, in dialysis patients for maintaining vessel patency. Data from the AV fistula arm expands upon the previously completed first-in-human study, WRAPSODY FIRST, and will support the company’s Premarket Approval application to the FDA. WRAPSODY is already approved and available for use in Europe and Brazil.

Following the news, shares of MMSI declined 1.1% to $98.51 at yesterday’s close. The company's ongoing advancements and positive product developments are expected to counterbalance the challenges it faces, like integrating acquisitions, managing manufacturing transitions and dealing with currency fluctuations.

Its accelerated introduction of cutting-edge products, combined with strong patient and physician adoption as well as ongoing regulatory approvals, is expected to drive growth.

Impact of WRAPSODY WAVE Trial Results on Merit Medical

Data from the AV fistula arm of the WAVE trial demonstrated that patients treated with ERAPSODY achieved a 27% higher target lesion primary patency rate of 89.8% compared to 62.8% for those receiving percutaneous transluminal angioplasty. The rate of adverse events was similar between the two groups. The data shows that WRAPSODY improves the maintenance of sufficient blood flow through the AV fistula in dialysis patients compared to PTA.

WRAPSODY's superior efficacy highlights its importance in extending the longevity of vascular access in dialysis treatment, which is critical for patient survival. These positive results mark a pivotal step toward improving vascular access maintenance for dialysis patients, positioning WRAPSODY as a potential new standard of care. The six-month efficacy data is highly compelling, allowing clinicians to assess WRAPSODY's ability to extend vascular access for patients. WRAPSODY has the potential to become the new standard of care.

In the United States, WRAPSODY is currently being used under an Investigational Device Exemption from the FDA.

Market Prospects Favoring MMSI

Per a report in Future Market Insights, the global arteriovenous fistula (AVF)treatment market size was worth $765.8 million in 2023. It is anticipated to reach $1.4 billion by 2033 at a CAGR of 5.9%.

The robust growth is likely to be driven by the introduction of innovative methods like photodynamic therapy, antiangiogenic therapy and sclerotherapy. However, effective and easy-to-use treatments are still in development, driving ongoing innovation and shaping market trends. Nonetheless, the high prevalence of AVF and limited treatment options continue to fuel market expansion.

MMSI Stock Price Performance

Shares of Merit Medical have risen 29.7% year to date compared with the industry’s 0.8% growth. The S&P 500 has witnessed an 18.1% rise in the same time frame.

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Zacks Rank & Key Picks

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

Some better-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) , ATI Physical Therapy (ATIP - Free Report)  and Aveanna Healthcare (AVAH - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.

ATIP's shares have surged 5.5% year to date compared with the industry’s 18.6% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

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