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Matthew.Turner


ShockWave Medical: Positive Outlook and Increased Net Income Drive Growth in Medical Device Industry

2023-07-30

SWAV, a company focused on improving medical devices, recently held an earnings call meeting to discuss their financial performance and provide updates to investors and analysts. The meeting was attended by key executives, including the President and Chief Executive Officer, the Chief Commercial Officer, and the Vice President of Finance.

During the meeting, SWAV expressed optimism about the market outlook for the first quarter, particularly regarding the early stages of the L6 launch and C2+ launch. The company expects the market composition in terms of geography and product mix to remain consistent. While reimbursement is expected to remain unchanged, SWAV is eagerly awaiting the proposed rule from CMS. They are confident about being slotted into the 5194 APC and anticipate a smooth transition in the first half of next year. In international markets, China initially experienced a slow start due to COVID but has since shown improvement.

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Looking ahead, SWAV's outlook for the quarter and year appears positive. The company is experiencing growth and investment, as evidenced by an increase in sales force expansion and R&D expenses. Notably, net income for the first quarter of 2023 has significantly increased compared to the same period in 2022. The CEO expressed confidence in sustained high-end growth across all categories and geographies, with expectations of increased utilization in both coronary and peripheral procedures. The company has raised its guidance for the year, indicating a strong belief in future performance. Additionally, SWAV is seeing encouraging starts in international markets and improving traction in peripheral procedures globally. Overall, the company's outlook suggests a positive trajectory for the quarter and year.

The meeting was attended by key executives, including Debbie Kaster - Vice President, Investor Relations, Doug Godshall - President and Chief Executive Officer, Isaac Zacharias - Chief Commercial Officer, and Trinh Phung - Vice President, Finance. Several analysts from prominent firms such as Piper Sandler, Canaccord Genuity, Bank of America Merrill Lynch, Wells Fargo Securities, Wolfe Research, Morgan Stanley, Deutsche Bank, and Needham and Company were also present. The presence of these individuals highlights the significance of the meeting and underscores its importance for the company.

SWAV's focus remains on improving their devices and finding ways to meet the significant unmet need in the market. The recent acquisition of Neovasc, a company with a promising device, has given them confidence in sustained growth. Despite ongoing investments in global marketing, sales resources, facilities, and R&D, the company remains financially strong. The meeting also touched upon reimbursement inpatient and the potential impact of a proposed rule on device selection and payment for PCI procedures.

In conclusion, SWAV's earnings call meeting provided valuable insights into the company's financial performance and future prospects. With a positive market outlook, increased net income, and a focus on innovation, SWAV appears well-positioned for continued growth and success in the medical device industry.