On Friday, H.C. Wainwright reaffirmed a Buy rating and a $14.00 price target on shares of AngioDynamics (NASDAQ:ANGO), a medical device company. The firm's focus was on the AlphaVac Multipurpose Mechanical Aspiration (MMA) F1885 System, which has recently initiated the RECOVER-AV trial for the treatment of acute pulmonary embolism (PE) in Europe. This trial is designed to bolster the market adoption of the AlphaVac F1885 System.
The RECOVER-AV trial, launched Thursday, is a prospective, single-arm study spanning multiple centers and nations within Europe. It aims to enroll patients who have been diagnosed with acute, intermediate-risk PE. The study will be conducted across approximately 20 hospital sites.
The primary goal is to measure the efficacy of the AlphaVac F1885 System by observing the reduction in the right ventricular/left ventricular (RV/LV) ratio from the baseline to 48 hours after the procedure.
Moreover, the trial will monitor the safety of the system by recording the incidence of Major Adverse Events (MAEs). Patient functional outcomes will be assessed at various intervals, including 30 days, six months, and 12 months post-procedure.
The AlphaVac F1885 System has already been granted CE Mark approval in Europe for the non-surgical removal of thrombi or emboli from pulmonary arteries and for the treatment of PE. This certification is crucial as it indicates compliance with health, safety, and environmental protection standards for products sold within the European Economic Area.
The prevalence of PE is notably higher in the European Union, particularly among emergency department admissions, compared to the United States. With approximately 435,000 PE events occurring annually in the six largest EU countries, the successful adoption of AlphaVac could significantly impact AngioDynamics' international sales in its Med Tech segment.
The optimism from H.C. Wainwright comes partly from the results of the APEX-AV trial conducted in the U.S., which leads the firm to anticipate positive outcomes from the European RECOVER-AV trial. Such results are expected to drive the adoption of AlphaVac in EU countries. AngioDynamics is scheduled to report its fiscal first-quarter 2025 financial results on October 3, 2024.
In other recent news, medical technology company AngioDynamics reported a slight revenue beat in its quarterly financial results, with pro forma revenue of $71.1 million, primarily driven by the Med Tech business. The company also announced a share buyback plan worth up to $15 million.
AngioDynamics provided revenue guidance for fiscal year 2025, estimating between $282 million and $288 million, aligning with Canaccord Genuity's forecast. Despite Canaccord Genuity lowering its price target for AngioDynamics, it maintained a Buy rating due to the company's potential.
In addition, AngioDynamics has initiated the RECOVER-AV trial in Europe to assess the AlphaVac Multipurpose Mechanical Aspiration System's safety and efficacy in treating pulmonary embolism. This move marks the company's first international research effort. AngioDynamics also divested several of its business units and discontinued certain products to optimize the company's portfolio and focus on its core business.
In the wake of these developments, AngioDynamics is expected to see steady growth, with momentum in its Med Tech segment and upcoming products like AlphaVac, NanoKnife, and Auryon. These are recent developments that continue to shape the trajectory of the company.
InvestingPro Insights
As AngioDynamics (NASDAQ:ANGO) continues to make strides in the medical device industry with its AlphaVac MMA F1885 System, the financial metrics and market sentiment provide additional context for investors. According to InvestingPro, AngioDynamics holds a market capitalization of $310.13M, which is a testament to its position in the market.
Despite facing challenges, as indicated by a negative P/E ratio of -1.68 and an adjusted P/E ratio for the last twelve months as of Q4 2024 at -5.86, the company's liquidity appears robust. It holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, providing financial flexibility.
One of the key InvestingPro Tips highlights that AngioDynamics has a high shareholder yield, which could be attractive to investors seeking companies with potential for returns. Moreover, the company has seen a strong return over the last three months with a price total return of 28.38%, and it's trading near its 52-week high, reflecting a recent large price uptick over the last six months of 35.96%.
While analysts have revised their earnings upwards for the upcoming period, it's important to note that they do not anticipate the company will be profitable this year. This contrasts with the positive clinical developments and could suggest a period of investment and growth that has yet to be reflected in profitability. For investors interested in deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ANGO, which may offer further insights into AngioDynamics' financial health and market potential.
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