Abiomed (NSDQ:ABMD) slid 6% in late afternoon trading following a note from a Wall Street analyst warning about Medicare reimbursement concerns for the company’s star Impella heart pumps.
Despite strong 4th quarter earnings and record sales, Lazard Capital Markets analyst Sean Lavin remained cautious about the company, given concerns about Medicare reimbursement and competition in the heart pump space.
Abiomed hadn’t received any news regarding reimbursement reconsiderations, the company told Reuters, but Lavin the risk remains, according to Lavin.
"Since the company had its best result ever and shares sold off slightly, it seems investors are not ready to let Abiomed’s valuation move higher in light of reimbursement noise," he wrote in a note to investors. Lazard also lowered its rating on Abiomed from "buy" to "neutral."
Abiomed announced in March that a American Medical Assn. panel approved the Society for Cardiovascular Angiography and Interventions’ reimbursement proposal for the Impella device.
The company last month won CE Mark approval for its latest generation Impella cVAD, a catheter-based implantable heart heart pump used to provide support for patients with heart conditions.
ABMD shares sank 6.3% to $22.77 as of about 3:15 p.m. today, just days after notching a new 52-week high of $26.17 following the release of the company’s 4th quarter earnings report.
Abiomed set off a Wall Street roller coaster last week when the Danvers, Mass.-based heart pump maker posted its 1st profitable year in a decade and a half.
The 3 months ended March 31 made up Abiomed’s "best quarter and year in company history, in terms of number of patients supported, revenue growth, and profitability," chairman, president & CEO Michael Minogue said in prepared remarks.
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