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Wednesday, Nov 13, 2024
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Inari Medical 2-Year Revenue Jumps 63% to $547.5M

Inari Medical Inc., which designs medical devices to remove large blood clots from veins, is one of the fastest-growing companies in Orange County since going public in 2020.

“And as we often say, despite all our progress to date, we are just getting started,” Chief Executive Drew Hykes said in a recent conference call to investors.

Inari is Orange County’s third fastest-growing large public company, according to Business Journal data, with revenue increasing 63% in the past two years to $547.5 million for the year ended June 30, 2024 (see list, page 22). The No. 1 and No. 2 fastest growing large companies, with sales above $500 million, were Rivian Automative and Alignment Healthcare.

The company last week announced that it’s partnering with American Venous Forum and the National Blood Clot Alliance in its Defiance trial. The international clinical trial treat patients with deep vein thrombosis (DVT) using Inari’s ClotTriever system.

Hykes said Inari’s commercial strategy hasn’t been impacted by recent probing from the U.S. Department of Justice over certain payments made to healthcare professionals in 2023.

“We continue to cooperate with them as we have all along,” Hykes said, referring to the Criminal Investigation Department. “That cooperation at this phase is really related to producing information for the DOJ.”

Inari (Nasdaq: NARI) counted a $2.6 billion market cap at press time. Its shares have more than doubled since its IPO.

Shares Fall in Response to Q2 Results, CFO Departure?

Inari in July reported that second quarter revenue grew 23% to $146 million. It also raised its full-year revenue guidance to $594.5 million to $604.5 million, a $2 million increase from its prior outlook.

“Our performance was underpinned by strong contributions across the Inari portfolio, including our market-leading PE and DVT therapies as well as our expanding set of solutions for new patient populations, which we call emerging therapies,” Hykes said.

Despite exceeding analysts’ expectations, shares took a hit the day after the announcement, falling 11% to $46.56.

The company reported a 41 cent adjusted loss when analysts expected a 16 cent loss.

The drop may also have been in response to news that Chief Financial Officer Mitch Hill was retiring effective Oct. 1.

He joined Inari in 2019, shortly after the company launched its FlowTriever and ClotTriever products. The company in that first quarter of commercialization reported $6 million in revenue and has since gone up twenty-fold.

During the July 30 conference call, Hykes credited Hill for a “myriad of contributions to Inari,” including leading the company’s IPO in 2020 that raised about $156 million in proceeds.

“Over the last five years, Mitch helped build and scale a robust financial, operating and technology foundation for Inari,” Hykes said in a July 30 statement.

Hykes added that he shares “Mitch and the Board’s confidence in the leadership” of new CFO Kevin Strange, who previously held the title of senior vice president of finance, accounting, strategy and business development.

Strange, who has been with Inari since 2020, oversaw day-to-day financial operations in his previous role and led the company’s largest-ever acquisition of Paris-based LimFlow S.A. for $415 million last November.

“In summary, he is uniquely qualified to lead our finance and accounting organization into the next phase of growth and impact,” Hykes said. “We expect a smooth transition of the CFO role from Mitch to Kevin as of October 1, 2024.”

Hykes said Hill helped “identify and develop” Strange as his successor. Hill commented on the July 30 call that he will be available “through the end of the year” to ensure a smooth transition.

Inari is set to release third quarter earnings on Oct. 28.

Lease for Manufacturing Facility in Costa Rica

Inari most recently inked a lease for 27,000 square feet at 510 Technology, a mid-rise office that’s part of Irvine Co.’s Discovery Park business complex.

Inari, which is headquartered less than a mile from the site, is subleasing the space from fellow device maker Vyaire Medical Inc., according to CoStar records.

Earlier this year, the company announced even bigger real estate plans to expand into Grecia, Costa Rica.

The company is investing a minimum of $15 million for a roughly 70,000-square-foot development in the city’s Evolution Free Zone, a high-tech business park that is roughly an hour’s drive from San José, Costa Rica’s capital.

“The rapid market uptake of our specially designed tools for treating patients with venous thromboembolism (VTE) and other vascular diseases led us to make the decision to build a high-volume manufacturing facility, which will help us meet this growing global demand,” Senior Vice President Paul Koehn said at the time of the announcement.

The lease agreement, which allows for two sizeable phases of expansion beyond the first building, also comes with an option to buy the manufacturing and distribution facility, according to regulatory filings.

Inari expects to initially hire 300, and ultimately 600 people, at the new location and its future phases, which are scheduled to open sometime next year, according to a statement.

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Sonia Chung
Sonia Chung
Sonia Chung joined the Orange County Business Journal in 2021 as their Marketing Creative Director. In her role she creates all visual content as it relates to the marketing needs for the sales and events teams. Her responsibilities include the creation of marketing materials for six annual corporate events, weekly print advertisements, sales flyers in correspondence to the editorial calendar, social media graphics, PowerPoint presentation decks, e-blasts, and maintains the online presence for Orange County Business Journal’s corporate events.
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