Merit Medical retains shares target, buy rating with FDA nod for Wrapsody

Published 20/12/2024, 16:22
Merit Medical retains shares target, buy rating with FDA nod for Wrapsody

On Friday, Merit Medical Systems , Inc. (NASDAQ:MMSI) shares, a $5.7 billion medical device company with "GREAT" financial health according to InvestingPro, sustained a Buy rating and a $127.00 price target from Canaccord Genuity.

The endorsement comes following the company's announcement of FDA approval for its Wrapsody Cell-Impermeable Endoprosthesis. Merit Medical (TASE:PMCN), which has demonstrated solid revenue growth of 8.12% over the last twelve months, plans to commercialize the product in 2025 and has scheduled an informational call regarding Wrapsody for investors on January 28.

The company's recent announcement detailed that nearly 100,000 procedures in the United States annually require the placement of a stent to maintain dialysis access. Merit Medical's Wrapsody is set to enter the market with premium pricing, aligning with the New Technology Add-on Payment (NTAP) cost requirements.

With a strong current ratio of 5.36, indicating robust liquidity to support new product launches, Merit Medical is pursuing Transitional Pass-Through (TPT) add-on reimbursement.

Management at Merit Medical previously indicated the potential for payment eligibility for Wrapsody as early as the third quarter of 2025. This would be applicable for a duration of two years under TPT and likely three years under NTAP.

The upcoming investor event is expected to provide further insights into the market opportunity, competitive landscape, and revenue expectations as the product secures add-on reimbursement.

Canaccord Genuity's analysis suggests that the revenue from Wrapsody would represent an increase to their current forecasts, as their model and Merit Medical's Long Range Plan (LRP) do not currently account for contributions from this new product. The firm anticipates that the investor call will clarify the company's strategy for the introduction and monetization of Wrapsody in the healthcare market.

In other recent news, Merit Medical Systems , Inc. has seen significant developments. The healthcare technology company's WRAPSODY Cell-Impermeable Endoprosthesis received premarket approval from the US Food and Drug Administration, with commercialization set to begin in the United States in 2025. The device, which was developed to maintain long-term vessel patency in dialysis patients, has shown promising outcomes in clinical trials.

In addition to this, Wells Fargo (NYSE:WFC) upgraded Merit Medical to Overweight, suggesting a positive outlook for the company. This follows the company's strong Q3 results, where total revenue reached $339.8 million, marking a 7.8% increase from the previous year. The company also acquired Cook Medical's lead management portfolio, which is expected to generate significant future revenue.

The company's President, Joseph C. Wright, recently resigned, with Fred P. Lampropoulos reinstated as the President. Despite this change in leadership, the company has continued to demonstrate solid growth. These are recent developments for Merit Medical Systems, Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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