Abiomed has been on Matson's list of potential medtech M&A targets for quite some time now. The company recently reported a strong fiscal first quarter, beating analyst expectations on several fronts, including revenue.
The company said its revenue rebounded from a -40% year-over-year decline in April to +4% year-over-year growth in June due to improved procedure volume.
Marie Thibault, a medtech analyst at BTIG and a former managing editor at MD+DI, noted in a report published Aug. 6 that Abiomed management's commentary during the recent earnings call points to a slightly faster recovery trajectory than her prior assumptions.
"While [Abiomed's] ability to grow July revenue despite the decline in U.S. utilization is impressive, we continue to model a [year-over-year] decline in F2Q revenue," Thibault wrote. "We think our forecast leaves room for upside, particularly if favorable trends in product mix continue and the COVID-19 resurgence does not meaningfully worsen. Despite what we perceived as a good F1Q performance and largely positive update against a challenging backdrop, we believe investor expectations for [Abiomed] are extremely high at the current share price."
In June the Danvers, MA-based company received an emergency use authorization for a device to treat COVID-related right heart failure patients.
The Impella RP [shown above] is a temporary heart pump that provides circulatory support for patients who develop right side ventricular failure and initially won FDA approval in 2017.