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Inari Treating Fewer COVID-19 Patients for Clots

Shares of device maker Inari Medical Inc. (Nasdaq: NARI) dropped 16% on Aug. 11 on what should have been good news—fewer patients with COVID-19 needing its products that treat blood clots in veins.

The declining prevalence of COVID-19, which can cause blood clots, was a key reason behind lagging procedure numbers during the second quarter ended June 30, Chief Executive Bill Hoffman told analysts and investors on a conference call.

Some 15% of patients it treated in the first quarter had COVID-related issues; by June that figure was just 4%.

While the Irvine-based company said revenue rose 150% to $63.5 million from the same period a year ago, above analysts’ estimates, it also reported a 7 cent profit, which was below the 9 cent estimate of analysts.

The company expressed concern about the industry taking a vacation this month.

“As we head into Q3, we are seeing a significant number of vacations by employees, physicians and staff,” Hoffman said. “The commercial impact of this is uncertain.”

Hoffman’s “cautious comments” won’t be his last, Bob Hopkins, an analyst for Bank of America Securities, said in an Aug. 11 report.

“This near-term uncertainty is likely to be an overhang for NARI as it will be for many device companies,” said Hopkins, who lowered Inari’s target price from $125 to $105 and kept its rating at neutral “due to valuation.”

Despite the one-day drop, Inari’s shares are still around $72 at press time, up more than threefold since it went public 15 months ago at $19 per share. It sports a $3.6 billion market cap.

Veins

Inari, founded in 2011, has developed two minimally invasive catheter-based devices, the FlowTriever and ClotTriever, to remove large clots from veins and eliminate the need for thrombolytic drugs.

The company boosted its annual forecast from a prior guidance of $240 million to $250 million, to $250 million to $255 million, implying a year-over-year growth around 80%.

During the call, Hoffman hinted at several new products that might yield some of that strong growth.

“We expect FDA clearance on several new products late this year and into the early part of next year,” Hoffman said. “And we look forward to sharing more at that time.”

Inari’s FlowSaver—a disposable filtration system that reinfuses extracted blood back into patients during pulmonary embolism (PE) procedures—was cleared by the FDA on July 22.

Hoffman said another near-term growth driver may be expansion into international markets, particularly Western Europe.

Enthusiastic feedback from physicians remains highly positive, he said.

“Looking ahead to this fall, when we have the summer holiday behind us and hopefully, a more stable operating environment post-pandemic, those trends will accelerate,” Inari Chief Operating Officer Drew Hykes told analysts.

“We love every second of the work, and we remain thankful for your support of our effort and for believing along with us in extraordinary possibilities,” Hoffman said. “We’re just getting started. We believe we can and will grow sustainably for many years to come.”  

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Audrey Kemp
Audrey Kemp
Audrey Kemp is a staff reporter and occasional photojournalist for the Orange County Business Journal. Her beats include — but are not limited to — healthcare, startups, and education. While pursuing her bachelors in literary journalism at UC Irvine, she interned for New York-based magazine Narratively Inc., wrote for Costa Mesa-based lifestyle magazine Locale, and covered the underground music scene for two SoCal-based music publications. She is an unwavering defendant of the emdash and the Oxford comma.
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