Inari's Expanding Product Portfolio Offsets Competition

Inari Medical NARI continues to ride on the success of its ClotTriever and FlowTriever products available for treating venous thromboembolism (VTE). The adoption of these products is rising on the back of their features, including minimally invasive, novel, catheter-based mechanical thrombectomy devices and their accessories to address the unique characteristics of specific disease states with better effectiveness. Apart from the efficacy of the products, an attractive procedural reimbursement is also fueling their adoption.

The stock carries a Zacks Rank #3 (Hold) at present.

ClotTriever products help in the removal of clots from peripheral blood vessels in patients suffering from deep vein thrombosis (DVT). Meanwhile, its FlowTriever product is the first thrombectomy system, approved for the treatment of pulmonary embolism.

Inari registered revenues of $143.2 million in the first quarter, up 23.3% year over year. During the reported quarter, NARI witnessed growth in revenues for its global VTE business on the back of commercial expansion and market development. Backed by supportive clinical data and attractive reimbursement, Inari's VTE excellence sales program is driving deeper adoption within the existing U.S. account base as well as adding new accounts.

Meanwhile, the company is also focused on expanding in international markets. According to management, Inari Medical saw record cases and revenue generation outside the United States in the first quarter. Increased adoption of Inari's products in Western Europe was the main factor behind its strong performance and excellent case growth in its early-stage markets in Latin America, Canada and the Asia-Pacific region. The company expects to start treating patients in China and Japan in 2024.

Inari Medical, Inc. Price

Inari Medical, Inc. price | Inari Medical, Inc. Quote

Apart from VTE products, Inari is also developing new products to target additional indications under its Emerging Therapy portfolio that represents a significant growth opportunity. Currently, the company has four approved products targeting different indications. It has plans to add new products targeting new indications, expanding the market further. NARI plans to initiate a limited market release of VenaCore, its second purpose-built tool within the CBD toolkit, in the second half of 2024.

On the flip side, the company faces significant competition in VTE and Emerging therapy segments from several established and small companies as well as new entrants developing conventional, similar or advanced products. The ClotTriever and FlowTriever products primarily compete with manufacturers of current standard of care for VTE, thrombolytic drugs like Roche, and medical device companies like Penumbra, Boston Scientific and others.

Currently, ClotTriever and FlowTriever have attractive reimbursement coverages that are driving adoption. However, government, as well as private payers, are limiting coverage and reducing reimbursements for medical products and services. Any unfavorable change in coverage for Inari's products is likely to hurt their adoption, thereby affecting the company's top-line growth.

Inari is also facing a civil investigative demand under the federal Anti-Kickback Statute and Civil False Claims Act. It has also filed a patent infringement lawsuit against Imperative Care and its subsidiary, Truvic Medical, citing violation of eight of its patents related to the treatment of DVT and pulmonary emboli using aspiration-based thrombectomy devices. The ongoing litigations are likely to increase legal expenses for Inari, thereby offsetting its net margin growth.

Stocks to Consider

Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. ALGN, Ecolab ECL and Boston Scientific Corporation BSX.

Align Technology, currently carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted earnings per share of $2.14, which beat the Zacks Consensus Estimate by 8.1%.

Revenues of $997.4 million outpaced the consensus mark by 2.6%.

Ecolab has a long-term growth rate of 14.3%. ECL's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.30%.

Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.7%. Ecolab's shares have risen 17.1% year to date against the industry's 19.9% decline.

Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. The company currently carries a Zacks Rank #2.

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