Will the Virtue SAB Agreement Reshape Terumo's (TSE:4543) Interventional Cardiology Narrative?

• In recent days, Terumo entered into a new agreement with Orchestra BioMed granting Terumo right of first refusal for the Virtue SAB drug-coated balloon for coronary artery disease, with Terumo making upfront and securities purchase payments of US$30 million to support device development and clinical trials.
• This move enhances Terumo’s pipeline in interventional cardiology and strengthens its foothold in the U.S. market, aligning the company for future commercial opportunities as pivotal trials progress.
• We’ll explore how Terumo’s expanded interventional cardiology pipeline, highlighted by this new Virtue SAB agreement, impacts its investment narrative now.

AI is about to change healthcare. These 34 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Terumo Investment Narrative Recap

To be a shareholder in Terumo, you have to believe in the company’s ability to strengthen its competitive edge and deliver sustained demand-driven revenue in core global markets, especially as its latest agreement with Orchestra BioMed and the expanding U.S. cardiology pipeline could speed up access to promising therapies. However, ongoing pricing pressures from global tariffs and uncertain cost pass-throughs remain the most important risk to margins and near-term profit expansion; the impact of the Virtue SAB agreement on these risks appears limited in the short term. Among recent developments, the FDA 510(k) clearance of Terumo's OPUSWAVE Dual Sensor Imaging System marks a meaningful step in deepening its U.S. presence for coronary artery disease solutions, supporting the catalyst that emerging technologies can broaden Terumo’s product mix and foster operating leverage. In contrast, investors should be aware that if pricing initiatives lose traction as tariffs push costs higher, ...

Read the full narrative on Terumo (it's free!)

Terumo's narrative projects ¥1,228.6 billion revenue and ¥180.7 billion earnings by 2028. This requires 5.8% yearly revenue growth and a ¥55.8 billion earnings increase from ¥124.9 billion.

Uncover how Terumo's forecasts yield a ¥3289 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Community members on Simply Wall St estimate Terumo’s fair value anywhere from ¥2,746.89 to ¥3,288.57, based on two individual analyses. With margins facing short-term headwinds from tariffs and price competition, it’s clear that investor opinions on Terumo’s future can widely differ, see what your peers are forecasting next.

Explore 2 other fair value estimates on Terumo - why the stock might be worth as much as 33% more than the current price!

Build Your Own Terumo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Terumo research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Terumo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Terumo's overall financial health at a glance.

Contemplating Other Strategies?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 26 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• Rare earth metals are the new gold rush. Find out which 35 stocks are leading the charge.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com