Abiomed bullish on 5-year strategy, pipeline products

Abiomed (NSDQ:ABMD) yesterday released 5-year financial growth plans as well as preliminary information on new pipeline products. The full presentation of the company’s long-term growth strategy and vision was presented to investors yesterday in Abiomed’s annual investor conference in Boston.

The company’s plans call for $1.2-$1.8 billion in sales, significantly higher than analyst estimates, according to Morgan Stanley note to investors.

The estimate is nearly double what analysts had expected at $600 million, and positions Abiomed for a compound annual growth rate of between 40-50%. The company’s model assumes gross margins of 80% with a conservative operating margin of 30%, analysts said.

In the pipeline for Abiomed are an expanded cardiac power pump, labeled the ‘ECP’, which is designed for blood flow of more than 3 liters per minute, according to the company. The device will be delivered with a standard Impella 9 Fr catheter and will include an 18 Fr expandable inflow in the left ventricle.

Also on the horizon is a next-generation Impella CP designed for a flow of 4.5 liters per minute, providing support for up to 10 days, the company said.

A new generation of Impella 5.0 – titled the Impella 5.5, will be deisgned for a higher flow target of 5.5 liters per minute, and includes a 19 Fr pump that is 45% shorter than the current 5.0. The new 5.5 is designed for a duration of weeks to months, Abiomed said.

The last pipeline item announced was an Impella bridge to recovery, designed similarly to the 5.5 with a more permanent time frame of months to years. The company said the device is slated to allow patients to be discharged from the hospital with the driver.

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