Stock of the Day

November 24, 2020

Abiomed (ABMD)

$381.02
$0.00 (0.0%)
Market Cap: $17.18B

About Abiomed

Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides a continuum of care to heart failure patients. The company offers Impella 2.5, a percutaneous micro heart pump with integrated motor and sensors; and Impella CP, a device for use by interventional cardiologists to support patients in the cath lab, as well as by cardiac surgeons in the heart surgery suite. It also provides Impella 5.0, Impella LD, and Impella 5.5, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; Impella RP, a percutaneous catheter-based axial flow pump; Impella SmartAssist platform that includes optical sensor technology for improved pump positioning and the use of algorithms that enable improved native heart assessment during the weaning process; Impella Connect, a cloud-based technology that enables secure and remote viewing of the automated impella controller for physicians and hospital staffs; and OXY-1 System, a portable external respiratory assistance device. In addition, the company is developing Impella ECP, a pump for blood flow of greater than three liters per minute; Impella XR Sheath, a sheath that expands and recoils allowing small bore access and closure with Impella heart pumps; Impella BTR, a percutaneous micro heart pump with integrated motors and sensors; and preCARDIA, a catheter-mounted superior vena cava therapy system designed to rapidly treat acutely decompensated heart failure. Abiomed, Inc. sells its products through direct sales and clinical support personnel in the Germany, France, United States, Japan, Europe, Canada, Latin America, the Asia-Pacific, and the Middle East. The company was founded in 1981 and is headquartered in Danvers, Massachusetts. As of December 22, 2022, Abiomed, Inc. operates as a subsidiary of Johnson & Johnson.

Abiomed Bull Case

Here are some ways that investors could benefit from investing in Abiomed, Inc.:

  • Abiomed, Inc. is a leader in the development of advanced heart pump technologies, including the latest Impella devices, which are critical for patients with severe heart failure, indicating strong market demand and potential for growth.
  • The company has a robust pipeline of innovative products, such as the Impella ECP and preCARDIA, which could enhance its market position and drive future revenue growth.
  • As of now, the stock price of Abiomed, Inc. is competitive, making it an attractive entry point for investors looking to capitalize on the company's growth potential in the medical device sector.
  • Abiomed, Inc. operates globally, with a presence in key markets such as the United States, Europe, and Asia-Pacific, which diversifies its revenue streams and reduces dependency on any single market.
  • The recent recall of labeling for left-sided Impella pumps, while a challenge, demonstrates the company's commitment to safety and regulatory compliance, which can enhance its reputation in the long run.

Abiomed Bear Case

Investors should be bearish about investing in Abiomed, Inc. for these reasons:

  • The recent recall of labeling for left-sided Impella pumps could lead to temporary disruptions in sales and impact investor confidence, highlighting potential risks in product management.
  • As a subsidiary of Johnson & Johnson, Abiomed, Inc. may face challenges related to corporate governance and strategic direction that could affect its operational independence and growth trajectory.
  • The medical device industry is highly competitive, and Abiomed, Inc. must continuously innovate to maintain its market share, which requires significant investment in research and development.
  • Regulatory hurdles in different markets can delay product launches and approvals, potentially impacting revenue growth and investor returns.
  • Market volatility and economic downturns can affect healthcare spending, which may lead to reduced demand for Abiomed, Inc.'s products, posing a risk to its financial performance.