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AtriCure (ATRC) Gains China Approval for AtriClip LAA System

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AtriCure, Inc. (ATRC - Free Report) recently announced receipt of regulatory approval from China’s National Medical Products Administration (NMPA) for its AtriClip Left Atrial Appendage (LAA) Exclusion System. This approval will enable AtriCure to market and sell several models of the AtriClip device in China, expanding access to its life-saving cardiac solutions.

AtriCure has leading technologies for the treatment of atrial fibrillation (Afib) and related conditions, which affect over 37 million people globally. Electrophysiologists, cardiothoracic and thoracic surgeons worldwide rely on AtriCure's solutions to manage Afib, reduce related complications and address post-operative pain. The AtriClip device is an innovative solution designed to exclude and electrically isolate the left atrial appendage during cardiac surgery.

Significance of the Approval

Per AtriCure, the approval of AtriClip LAA Exclusion System by China’s NMPA is a significant advancement in providing effective treatments for patients with Afib in China. Left atrial appendage is thprimary source of blood clots in Afib patients, making the exclusion and isolation of the LAA crucial for reducing stroke risk. The AtriClip device, recognized for its unique design and efficacy, has already been used in over 550,000 procedures worldwide. This regulatory approval not only opens up a major market opportunity for AtriCure but also aligns with its mission to enhance patient outcomes globally.

AtriCure plans to collaborate with top medical institutions and professionals in China to ensure comprehensive training and support, thereby maintaining high standards of patient care and encouraging the introduction of future innovations.

Industry Prospects

Per a report in Global Market Insights, the global left atrial appendage closure devices market was valued at $1.6 billion in 2023. It is anticipated to reach $5.3 billion by 2032 at a CAGR of 14.1%.

The robust growth is likely to be driven by the increasing prevalence of atrial fibrillation, a strong product pipeline and increasing government initiatives. The robust healthcare system of the country, an extensive network of specialized cardiac centers and a high rate of advanced medical procedures are significant drivers of market growth.

A Recent Development

In April, AtriCure introduced the cryoSPHERE+ cryoablation probe. This new device features advanced insulation technology that decreases freeze times by 25% compared to the previous cryoSPHERE model. The cryoSPHERE+ is currently in an extended limited launch in the United States, with a full release anticipated by the end of the second quarter. It builds on the safety and efficacy of the original cryoSPHERE, which has been used in over 60,000 procedures since its 2018 clearance.

Price Performance

Shares of AtriCure have declined 30.8% so far this year against a 4.1% rise of the industry .The S&P 500 witnessed a 17% rise in the same time frame.

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Zacks Rank & Key Picks

Currently, AtriCure carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader medical space are Quest Diagnostics (DGX - Free Report) , Universal Health Services (UHS - Free Report) and Haemonetics (HAE - Free Report) , each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quest Diagnostics has an estimated long-term growth rate of 5.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.67%.

Quest Diagnostics shares have gained 3.2% compared with the industry’s 10.9% rise so far this year.

Universal Health Services has an estimated long-term growth rate of 15.20%. UHS’ earnings surpassed estimates in each of the trailing four quarters,with the average being 8.12%.

Universal Health Services has gained 17.5% compared with the industry's 10.2% rise so far this year.

Haemonetics has an estimated long-term growth rate of 12.00%. HAE’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.24%.

Haemonetics’ shares have increased 7.1% compared with the industry's 3.2% rise so far this year.

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