On Wednesday, Canaccord Genuity maintained a Buy rating and a $74.00 price target on Inari Medical Inc. (NASDAQ: NARI) following the presentation of the PEERLESS trial results. The trial demonstrated that Inari Medical's FlowTriever was superior to catheter-directed thrombolytics (CDT) for patients with intermediate-risk pulmonary embolism showing clinical deterioration, resulting in shorter hospital stays and fewer intensive care unit admissions and readmissions.
Inari Medical shared the PEERLESS trial outcomes at the TCT conference in Washington, DC. The findings suggest that the FlowTriever system, which is a large-bore mechanical thrombectomy (LBMT) device, offers a more effective treatment option compared to the traditional CDT method. The company believes that by capturing market share from CDT, an additional $150 million could be added to its total addressable market (TAM), given that approximately 15,000 U.S. patients are currently treated with CDT.
Despite the positive trial results, a pre-TCT survey of clinicians indicated skepticism about the data's potential to significantly alter clinical practices. Canaccord Genuity anticipates that the forthcoming PEERLESS II trial, which will compare FlowTriever against anticoagulation therapy, could be a more decisive factor in expanding the company's TAM.
The firm noted that while the recent data supports the growth of the venous thromboembolism (VTE) market, it is not expected to substantially increase growth rates in the near term. The analyst highlighted that physician preference for CDT might persist due to ease of use and familiarity with large-bore devices, but the new evidence could challenge this reliance.
Inari Medical's FlowTriever system is positioned to gain further traction in the VTE market as the company continues to provide evidence of its efficacy and benefits over traditional treatment methods. Canaccord Genuity's reiteration of the Buy rating and price target reflects confidence in the company's growth trajectory and market potential.
In other recent news, Inari Medical posted a record revenue of $153.4 million in Q3 of 2024, marking a 21% year-over-year increase. Despite a GAAP operating loss this quarter, the company raised its full-year revenue outlook to between $601.5 million and $604.5 million. International sales, particularly in Europe and Latin America, surged by 76.4%, buoyed by regulatory approvals in multiple regions.
These developments come alongside the company's ongoing efforts in new product launches, such as LimFlow and Artix, and the PEERLESS trial, expected to drive future growth. While the company reported a net loss of $18.4 million, it remains on track for operating profitability in the first half of 2025.
Inari Medical's strategic focus on regulatory approvals and market penetration in high-growth international markets, along with the development of its Emerging Therapies portfolio, indicate recent advancements. However, achieving sustained profitability while balancing growth with financial discipline remains a key focus.
InvestingPro Insights
Inari Medical's recent PEERLESS trial results align with several key financial metrics and insights from InvestingPro. The company's impressive gross profit margin of 86.82% for the last twelve months as of Q3 2023 suggests strong pricing power for its innovative products like the FlowTriever system. This high margin could provide the financial flexibility needed to further invest in clinical trials and market expansion.
InvestingPro Tips highlight that 5 analysts have revised their earnings upwards for the upcoming period, indicating growing confidence in Inari's future performance. This optimism may be partly attributed to the positive PEERLESS trial results and the potential for increased market share in the VTE treatment space.
The company's revenue growth of 22.41% over the last twelve months demonstrates its ability to capitalize on market opportunities, which could be further enhanced by the superior outcomes of the FlowTriever system compared to traditional CDT methods.
While Inari Medical is currently not profitable, with a P/E ratio of -52.0, the company's focus on expanding its total addressable market through clinical evidence could pave the way for future profitability. The strong return over the last month (19.25%) and significant price uptick over the last six months (31.71%) suggest that investors are recognizing the company's potential.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for Inari Medical, providing a comprehensive view of the company's financial health and market position.
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