Jefferies Reports NHIC Reversal Creates Positive Precedent For Abiomed

According to Jefferies, Abiomed

NHIC reversal creates a positive precedent. Jefferies reported that it believes that the surprise NHIC LCD reversal following a more thorough review of the PROTECT II sub group data is an indication that future LCD drafts could be favorable. “Our sum-of-the-parts analysis generates a new PT of $20 and uses a 5.0x multiple to the avg of F12 through F16 Impella sales (discounted back by 15%), a 1.5x multiple on F12 non- Impella sales, and adds ~$59M in cash. ABMD faces regulatory and reimbursement risks.” Abiomed closed yesterday at $16.93.