This has been a big year for medical device stocks with the likes of Cochlear Limited (ASX: COH) and ResMed Inc. (CHESS) (ASX: RMD) surging ahead of the market. But 2018 could be the year for their smaller peer Impedimed Limited (ASX: IPD), which has surged ahead by 6.5% to 99 cents this morning on strong volume despite the holiday indolence. The company announced today that the US Food and Drug Administration (FDA) has approved its SOZO device for monitoring patients with chronic heart failure (CHF). This opens a new and huge market opportunity for Impedimed, which had initially…
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But 2018 could be the year for their smaller peer Impedimed Limited (ASX: IPD), which has surged ahead by 6.5% to 99 cents this morning on strong volume despite the holiday indolence.
The company announced today that the US Food and Drug Administration (FDA) has approved its SOZO device for monitoring patients with chronic heart failure (CHF).
This opens a new and huge market opportunity for Impedimed, which had initially developed its body fluid measurement device for lymphedema.
Adding CHF to its repertoire is a very big deal for Impedimed. The heart failure market is expected to hit US$11.8 billion by 2025 from US$3.2 billion in 2015, according to research firm GlobalData. This represents an impressive compound annual growth rate (CAGR) of 13.7% and a good chunk of the growth is expected to come from the non-invasive smart devices category.
The SOZO Fluid Status Monitor is intended for adult patients living with heart failure. The device is non-invasive and is intended to be used under the direction of a doctor for the monitoring of patients with fluid management problems suffering from heart failure.
The Impedimed has been a big underperformer in 2017 with the stock falling around 10% since January as it was targeted by short sellers who didn’t think the company’s technology could gain sufficient market traction, especially in the US.
In contrast, the All Ordinaries (Index:^AXAO) (ASX:XAO) is up around 7% while Cochlear and ResMed have surged ahead 41% and 28%, respectively.
I think the stock looks well placed to stage a big comeback in the new year and Impedimed represents good value under a buck.
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Motley Fool contributor Brendon Lau owns shares of ImpediMed Limited. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.