Analysts Expect Merit Medical & #039;s Hot Streak to Last

Terumo's loss appears to be Merit Medical's gain. Product shortages at the former benefitted Merit during the last two weeks of the second quarter by boosting sales across several product lines, including sheath introducers, guidewires, microcatheters, compression devices, and catheters.  Merit reported revenue of $224.8 million in the second quarter, which represents a 9.8% organic growth over the same period last year and beat analyst consensus of $214.7 million. To put it in terms of the company's expectations, CEO Fred Lampropoulos told investors during Tuesday's earnings call that Merit had projected revenue growth would be between 7.5% and 8.5%. Merit executives said this benefit from its competitor's supply issues has increased daily, and they expect to retain the business even after Terumo's shortages are addressed. The company estimates that the market for these products is around $500 million and that it currently has about $50 million of that market share. "This particular competitor, which is a great company, but they’ve stubbed their toe," Lampropoulos said, and later during the call, he did confirm that Terumo is the competitor he was referring to. Terumo announced shipping delays earlier this month for products from its Ashitaka factory in Shizuoka, Japan, which produces cardiovascular products. "While Terumo was pursuing enhancements of its manufacturing capabilities at the Ashitaka factory, the company discovered that there were challenges in the pr...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news