LivaNova Disappoints with 1Q19 Earnings

Weak sales from LivaNova’s Neuromodulation business could be one of the main culprits behind the company posting disappointing earnings for 1Q19. The London-based company posted revenues of $250.8 million, vs. the consensus estimate of $255.87 million. As a result, the firm slashed its 2019 outlook. In addition, LivaNova said its 2019 earnings per share came in between $3 and $3.10 vs. the consensus of $3.41. “We are disappointed by our first quarter performance in U.S. Neuromodulation and Perceval sales. As a leadership team, we are implementing a series of actions to counteract the market dynamic and salesforce retention issues we experienced," Damien McDonald LivaNova CEO said in a release. The top reasons behind the “disappointing” earnings are the turnover in LivaNova’s sales team and GW Pharmaceuticals’ Epidiolex a new epilepsy treatment drug derived from cannabis, said Mike Matson an analyst with Needham and Company LLC. Neuromodulation sales of $94.4 million (up 2.3% vs. 14.5% in 4Q18), were below Needham and Company’s estimate of $104.2 million. “Neuromodulation was hurt as patients trialed the new drug Epidiolex, Matson, wrote in research notes. “This likely caused some patients to delay VNS implants as they try out Epidiolex. And the sales turnover occurred as reps left for Epidiolex maker GW Pharmaceuti...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news