As part of a market outlook for 2017, The Investing News Network wrote about 4 medical device stocks for investors to maintain on their radar.
Now that we’ve reached the halfway point of the year we look back at the performance of these stocks so far this year and major news from their development cycle.
While a couple of them have seen decreases in their stock this year, there are still some success stories.
Market cap: $226.50 million; Year-to-date percentage: -49.89 percent; current share price: $2.18
Cerus is working on the development and commercialization of the blood safety and FDA approved INTERCEPT blood system. This method essentially blocks the replication of viruses, bacteria, and parasites in the body.
The company reported an increase in net losses for the first quarter of 2017 to $18.6 million compared to last year’s $16.9 million for the same period of time. Gains for the company also went down slightly, with Cerus reporting $7 million in revenue compared to $7.6 million during the same period of time last year.
Cerus also suffered a setback from a supply shortage for a platelet additive solution from Fresenius Kabi.
“The pending shortage is due to an unanticipated delay in FDA approval of a plastic component used in the manufacture of the PAS container,” the company explained in a press release.
Due to the delay, Cerus updated their 2017 revenue to somewhere between $38 and $46 million.
Cardiovascular Systems (NASDAQ:CSII)
Market cap: $1.06 billion; Year-to-date percentage gain: 33.04 percent; current share price: $32.21
This company is focused on the treatment of patients with peripheral and coronary artery diseases.
CSI began seeing an increase in their stock since January when they released their financial report for the second quarter of their fiscal year. In this report, it was indicated revenue took a massive leap increasing 21 percent and reached $50 million. The company was able to turn last year’s second quarter $15.2 million loss to a $1 million net income.
This sales trend continued well into their third quarter when the company reported revenues of $52.1 million. However, they did present a $1.7 million loss.
Market cap: $271.19 million; Year-to-date percentage: -32.72 percent; current share price: $5.45
ConforMIS offers knee implants for patients and changes the usual dynamic of this market by designing the implant based on the actual body of the patient, instead of producing mass market molds.
The company’s stock saw a heavy decline in February following its financial report for the fourth quarter of 2016 and the full year.
ConforMIS reported a $15.7 million net loss for their fourth quarter an increase from the previous year.
The US market pushed ahead revenue for ConforMIS totaling 17.7 million, but their worldwide sales declined to $3.7 million.
ConforMIS placed their expectations for total revenue for 2017 in the range of $80 to $84 million.
“2017 will be a transition year for ConforMIS as we focus on improving our long-term growth and profitability profile,” president and CEO Mark Augusti said as part of the report.
Market cap: $541.11 million; Year-to-date percentage gain: 80.56 percent; current share price: $16.25
AxoGen offers patients surgical solutions for peripheral nerve injuries, which according to the company represent an over $1.6 billion market opportunity.
In February the company revealed their financial numbers for the fourth quarter and full year of 2016 since then their stock has been on a steady increasing path.
For the full fiscal 2016, AxoGen reported a 50 increase in revenue, totaling 41.1 million, president and CEO this increase was due to an improvement of “strategic capabilities.” As for their fourth quarter, the company also reported an increase in revenue compared to the previous year and refinancing debt facility to reduce interest costs.
The success AxoGen found continued well into 2017 when it reported $12.2 million in sales for the first quarter of the year.
The company now has 50 sales representatives for their products and counts with 20 independent distributors.
Editor’s note: HeartWare International was acquired by Medtronic PLC (NYSE:MDT)
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This is an updated version of an article originally published on Life Science Investing News on 2016.
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
**This article is updated periodically. Please scroll to the top for the most recent information**
Like most industries, medical device companies are fairly diverse. From small, specialized companies to multinational healthcare corporations, there are all sorts of participants in this industry.
Here, Life Science Investing News identifies a few small cap, US-based companies, focusing on four small medical device companies to watch.
All market caps and share prices are accurate as of October 5, 2016.
Market cap: $641.93 million
Share price: $6.20
Cerus is one of the more interesting small cap medical device companies out there. The company is involved in developing and commercializing the INTERCEPT Blood System for blood safety. This system is intended to target blood-borne pathogens, including viruses like HIV, West Nile and hepatitis.
Currently, the company has commercial rights for its INTERCEPT Blood System for platelets, plasma and red blood cells. The systems for plasma and platelets are being marketed and sold in the US, Europe, the Middle East and other regions, while the company’s red blood cell system is still in the development-stage. In the US, this area constitutes a large market. Therefore, Cerus’ efforts to fill a niche within this market should be appealing to some investors.
Cardiovascular Systems (NASDAQ:CSII)
Market cap: $797.13 million
Share price: $23.89
Cardiovascular Systems targets another one of the US’s largest markets for medical products: heart implants and devices. The company works to treat patients with peripheral and coronary vascular diseases by developing an orbital atherectomy technology for these diseases. Its peripheral arterial disease systems are a catheter-based platform that targets plaque types in leg arteries.
Meanwhile, its coronary product, meanshipe, is a catheter-based platform that facilitates stent delivery in patients with coronary arterial disease. Other products produced by Cardiovascular Systems include the Stealth 360 degree Peripheral Orbital Atherectomy System, the Diamondback 360 Peripheral OAS and the Diamondback 360 4 French 1.25 Peripheral.
HeartWare International (NASDAQ:HTWR)
Market cap: $1.02 billion
Share price: $57.98
Heartware International is another one of the small medical device companies targeting the lucrative heart medical device market. The company develops and manufactures miniature implantable heart pumps (also known as ventricular assist devices) intended for patients suffering from advanced heart failure.
The HeartWare Ventricular Assist System, which includes a blood pump, patient accessories and surgical tools, works to offer circulatory support for these patients with heart failure. The system is meant to be implanted adjacent to the heart, which avoids the necessity of abdominal surgery.
To date, the company has gained 15.04 percent this year.
ConforMIS Inc (NASDAQ:CFMS)
Market cap: $405.77 million
Share price: $9.75
ConforMIS is focused on its iFit Image-to-Implant technology platform. The company uses this platform to develop, manufacture and sell joint replacement implants that have been customized to each patient’s size, shape and anatomy.
For instance, ConforMIS offers a line of customized knee implants intended to restore the natural shape of a patient’s knee.There appears to be a decent sized market for these devices, as the company has sold over 30,000 knee implants in the US and Europe so far.
ConforMIS distributes its products across the world, throughout the US, Germany, and the United Kingdom. Buyers typically include orthopedic surgeons, hospitals and other medical facilities.
Don’t forget to follow us @INN_LifeScience for real-time news updates!
This is an updated version of an article originally published on Life Science Investing News on December 7, 2015.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.