- Needham believes the most meaningful announcements for Cardiovascular Systems Inc (NASDAQ:CSII) over the last 18 months could be:
- Partnership with Innova Vascular to develop a portfolio of thrombectomy devices.
- Redesign and relaunch of CSII's previously recalled WIRION embolic protection device.
- The development of intravascular lithotripsy (IVL) system to compete with Shockwave Medical Inc (NASDAQ: SWAV)
- Partnership with Chansu Vascular Technologies to develop everolimus drug-coated balloons.
- Development of a percutaneous ventricular assist device.
- Needham is concerned about the near-term impact of competition.
- The analysts write that CSII's coronary and peripheral markets peers have seen stronger growth in recent quarters.
- Needham believes that there is limited overlap in lesions where both IVL and orbital atherectomy can be used. Given the tremendous growth that SWAV is seeing, it is taking share from CSII.
- While SWAV's growth is likely to slow, Needham is concerned about additional market share loss in CSII's peripheral and coronary business and believes that the ~10% revenue growth implied by consensus FY23 estimates is too high.
- Price Action: CSII shares are down 3.84% at $15.14 during the market session on the last check Wednesday.
