This medical device company makes unique equipment to treat blood clots.
Inari Medical, Inc. (NARI)
From Canaccord Genuity Research
We initiate coverage with a BUY rating and $60 price target on NARI.
Founded to address the high, unmet market need posed by venous disease, Inari Medical is in the early stages of disrupting and redefining the treatment of venous clot. Inari, behind its purpose-built, venous-focused technologies, is helping fuel the ongoing paradigm shift in intervention, expanding mechanical intervention into a greater percentage of the target patient population.
The firm’s ClotTriever, indicated for the treatment of DVT, as well as the firm’s FlowTriever, indicated for the treatment of PE, are designed to mechanically remove clot from the venous system without the use of thrombolytics (tPA), a positive both from a patient safety perspective (lower bleeding risk) as well as an economic standpoint (reduced LOS). Not only are the clinically demonstrated safety and efficacy of Inari’s platforms helping displace anticoagulation as the longstanding standard of care, but they are also enabling Inari to capture share from catheter-based mechanical thrombectomy devices which in many cases require adjunctive use of Iytics (tPA).
We model a ~$3B total target addressable market in the US today, encompassing both DVT and PE. We expect NARI to deliver strong, top-line growth for multiple years; we model (COVID-impacted) sales growth of 48 in 2020E, accelerating to 69 in 2021E, and remaining solid at 36 in 2022E. Our $60 price target is based on a 21.9x 2020E EV/sales multiple - in line with the high-growth med-tech comp group (+25 forward 2yr revenue CAGR), applied to our 2021E.
We ascribe a $60 price target, based on an in-line multiple with the high-growth (>25 fwd. 2-yr CAGR) med-tech comp group. We apply a 21.9x EV/sales multiple, in-line with the median high-growth 2020 EV/sales comp group multiple, to our 2021E sales estimate of $127M to arrive at our $60 price target.
William J. Plovanie and Cecilia Furlong, Canaccord Genuity Research, canaccordgenuity.com, June 26 2020