Yahoo Finance Penumbra's (PEN) New Launch to Enhance Blood Clot Removal
Penumbra, Inc. PEN recently announced the FDA’s clearance and the launch of Lightning Flash 2.0, the next generation computer assisted vacuum thrombectomy (CAVT) system to remove venous thrombus and treat pulmonary emboli (PE). Lightning Flash 2.0 is part of Penumbra’s Indigo System with Lightning portfolio.
It is worthwhile to note that the company’s Lightning products are currently the only computer assisted mechanical thrombectomy systems available in the United States.
The latest regulatory approval and the launch of the CAVT system are significant stepping stones for Penumbra and likely to solidify its position in the thrombectomy space.
Significance of the Launch
The Lightning Flash 2.0 features advanced Lightning Flash algorithms designed for increased speed and sensitivity to thrombus and blood flow. These new advancements, combined with Penumbra’s novel catheter technology, are expected to enable physicians to better navigate the body’s complex anatomy and deliver high power for clot removal with possible minimal blood loss.
Based on the initial launch, management believes that the Lightning Flash 2.0 has significantly improved procedure time by shortening the aspiration time and has also shown reductions in blood removed during aspiration. Per management, these advantages will likely improve patient safety, provide better outcomes for the patients and streamline efficiency for physicians treating the patients.
Industry Prospects
Per a report by Transparency Market Research, the global thrombectomy devices market was worth $1.7 billion in 2022 and is anticipated to exceed $3.4 billion by 2031 at a CAGR of 7.3%. Factors like the increasing prevalence of cardiovascular disorders and a growing elderly population are likely to drive the market.
Given the market potential, the latest launch is expected to provide a significant boost to Penumbra’s business.
Notable Developments
In February, Penumbra reported its fourth-quarter 2023 results, wherein it registered a robust uptick in its revenues from sales of its thrombectomy products, driven primarily by the sales of its U.S. thrombectomy products.
Penumbra, in November 2023, announced the first patient enrolled in STORM-PE, a first-of-its-kind prospective, multi-center, randomized controlled trial evaluating anticoagulation alone vs anticoagulation plus Lightning Flash for the treatment of PE. In partnership with the PERT Consortium, the STORM-PE trial aimed to advance the understanding of the role of CAVT in the management of acute PE, with the goal of improving the outcomes for patients with this life-threatening condition.
Price Performance
Shares of Penumbra have lost 27% in the past year against the industry’s 3.9% rise and the S&P 500’s 25.3% growth.
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Zacks Rank & Key Picks
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are IDEXX Laboratories, Inc. IDXX, Becton, Dickinson and Company BDX, popularly known as BD, and Ecolab Inc. ECL).
IDEXX, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.6%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s shares have gained 2.9% compared with the industry’s 3.9% rise in the past year.
BD, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.4%. BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average being 4.6%.
BD has lost 11.1% against the industry’s 4.9% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
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