12. Penumbra, Inc. (NYSE:PEN)
Consensus Long-Term EPS Growth Estimate: 19%
Number of Hedge Fund Holders: 24
Penumbra, Inc. (NYSE:PEN) is a mid-sized medical device manufacturer headquartered in Alameda, California. The firm primarily makes and sells thrombectomy and embolization products. As of H1 2024, 74% of Penumbra, Inc. (NYSE:PEN)’s revenue came through its thrombectomy products. Consequently, Penumbra, Inc. (NYSE:PEN) has to stay on top of its game in this industry or risk losing market share to rivals. To maintain share, the firm has to ensure adequate channel penetration of its products and continuously launch new products to stay ahead of competitors. On the latter front, Penumbra, Inc. (NYSE:PEN) scored a win earlier this year when the FDA cleared its new below-the-knee blood clot removal system. The firm is also developing a computer-assisted vacuum thrombectomy system to help prevent heart strokes. Potential FDA approval could generate tailwinds.
Penumbra, Inc. (NYSE:PEN)’s management shared details about its new systems during the Q3 2024 earnings call. Here is what they said:
“FDA clearance of Lightning Bolt 6X in September further expands the reach of our advanced CAVT technology to smaller arteries including below the knee arterial occlusions where our legacy catheters are currently used to treat a portion of the patient population. The introduction of Bolt 6X will deliver CAVT’s benefits, improved procedure efficiency and a reduction in procedure times to these patients. Similar to Lightning Bolt 12, we expect modest contributions from 6x in the fourth quarter as we commence commercialization. That said, we see a meaningful opportunity for our arterial focused CAVT portfolio currently including Bolt 7 and Bolt 6X to accelerate physician conversion from open surgery or the use of lysics to a computer assisted endovascular first approach to treating arterial clot.
Despite significant progress to date, we remain in the early stages of helping the over 800,000 patients annually in the U.S. who suffer from VTE and arterial clot with our proprietary CAVT technology. Turning to the neurovascular business, our team delivered another solid double digit performance in stroke thrombectomy. As interest wanes in the Super Large Bore OE8 catheters as aspiration catheters, most of the companies with those products have switched to positioning them as guide catheters. This positions us very well with our market leading aspiration portfolio led by RED72 with our proprietary SENDit technology and RED43. As we prepare to bring Thunderbolt and the benefits of our CAVT technology to the neurovascular field. As we previously announced, our Thunder trial recently completed enrollment with follow up scheduled to be completed by the end of the year.
We will provide additional future updates as appropriate, but needless to say, we are excited about the prospect of bringing CAVT and its demonstrated clinical benefits and procedural advantages to the neurovascular field, further solidifying and enhancing our market leading position in the field of stroke thrombectomy.”
