HTWR

Heartware International Inc

Healthcare, Event Driven/Special Sit


Presented:06/09/2016
Price:$32.58
Cap:$0.57B
Current Price:$57.98
Cap:$1.02B

Presented

Date06/09/2016
Price$32.58
Market Cap$0.57B
Ent Value$0.55B
P/E RatioN/A
Book Value$10.01
Div Yield0%
Shares O/S17.46M
Ave Daily Vol358,340
Short Int12.85%

Current

Price$57.98
Market Cap$1.02B
HeartWare International, Inc. is a medical device company which develops and manufactures miniaturized implantable heart pumps or ventricular assist devices to treat patients suffering from advanced heart failure. The company was founded on July 29, 2008 and is headquartered in Framingham, MA.

Publicly traded companies mentioned herein: Abbott Laboratories (ABT), Boston Scientific Corporation (BSX), Cabot Microelectronics Corporation (CCMP), CIT Group Inc (CIT), Comerica Incorporated (CMA), HeartWare International Inc (HTWR), JPMorgan Chase (JPM), Medtronic plc (MDT), St Jude Medical Inc (STJ), The WhiteWave Foods Company (WWAV)

Highlights

The presenter is long shares of HeartWare International (HTWR) and sees substantial upside potential for shareholders if/ when positive data are released on the company’s left ventricular assist device (LVAD, or VAD), called HVAD. While the market cap is on the smaller side (just under $600 million), the risk / reward is attractive in the low $30s and there are activist investors helping guide the company forward. HeartWare and Thoratec are the only companies with approved LVADs on the market, and the main difference is that Thoratec’s HeartMate II is approved for both ‘bridge to a heart transplant’ and ‘destination’ therapy; whereas HTWR’s HVAD is only presently only approved for the bridge to transplant patient population. Once the ENDURANCE2 trial data are available, either HTWR’s future sales forecasts could jump (leading to a multiple re rating); or the company could be acquired similar to how St. Jude acquired Thoratec.

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