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Inogen (INGN) Gains on Diverse Product Line, Competition Rife

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On Feb 14, we issued an updated research report on leading medical devices company Inogen, Inc. (INGN - Free Report) .

Based in California, Inogen develops, manufactures and markets portable oxygen cylinders (POC). POCs are used by patients who suffer from chronic respiratory conditions.

Inogen’s price movement over the last six months has been favorable. The company represented a return of almost 27.7%, better than the industry’s rally of 11.3%. The current level is also higher than the S&P 500’s return of 9.5%.

 

 

The company’s broad spectrum of products is a key catalyst. One G4 is the flagship product that is a single-solution POC. Moreover, the One G3 POC brings mobility and independence to oxygen therapy users. The next important platform is the Inogen At Home, which is formulated for patients requiring oxygen therapy during sleep. Recently, the company received EC Certificate for One G4.

POCs have a booming prospect in the MedTech space. They are capable of solving most of the problems and limitations related to conventional oxygen therapy at home or oxygen tanks or cylinders for mobile use. They also provide unlimited supply of oxygen at a lower cost. This is likely to help the company penetrate the Long-term Oxygen Therapy (LTOT) market much faster than competitors.

Inogen’s international market scenario is impressive with favorable reimbursements in countries like Germany, France and the U.K. Germany is the second-largest market in Europe for Inogen’s medical oxygen systems.

On the flip side, POC adoption continues to face significant challenges in the LTOT market. This is likely to be the effect of lack of awareness among consumers about benefits of POC devices and reluctance of home equipment medical providers to support POC adoption.

Furthermore, intense competition in the niche space adds to the woes. In the LTOT market, the likes of Invacare Corp, Respironics (a subsidiary of Koninklijke Philips), AirSep Corp and SeQual Technologies (subsidiaries of Chart Industries), Inova Labs, Inc. and DeVilbiss Healthcare pose significant competition to Inogen.

Adverse foreign exchange rates plague the company as it derives a significant part of its revenues from international markets.

Zacks Rank & Stocks Worth a Look

Inogen carries Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Centene Corp (CNC - Free Report) , ATHENAHEALTH INC (ATHN - Free Report) and Bioverativ Inc. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Centene has an impressive projected long-term growth rate of 14.6%. The stock has returned 23.3% in the last six months.

ATHENAHEALTH has an expected long-term growth rate of 23.1%. The stock has gained 7.3% in the last three months.

Bioverativ has an expected long-term growth rate of 14%. The stock has gained 87.2% in the last three months.

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