Merit Medical Systems (MMSI) Is Up After EU Approval for Embosphere Knee Osteoarthritis Therapy – Is Global Expansion Accelerating?

• Merit Medical Systems recently announced that its Embosphere® Microspheres received European Union approval for use in genicular artery embolisation to treat knee osteoarthritis, supported by clinical data showing sustained pain relief for over 75% of treated patients.
• This expanded approval opens access to a large global market of nearly 600 million people affected by osteoarthritis and highlights the company's focus on innovative, minimally invasive therapies for chronic conditions.
• We'll explore how the EU approval for Embosphere’s knee osteoarthritis therapy could enhance Merit Medical’s growth outlook and international expansion.

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Merit Medical Systems Investment Narrative Recap

To be a shareholder in Merit Medical Systems, you need to believe that increasing demand for minimally invasive therapies and product innovation will drive long-term growth, despite industry pricing pressures and reimbursement uncertainties. The recent EU approval for Embosphere’s use in knee osteoarthritis could support short-term momentum by opening access to a sizeable new market, yet delays in securing reimbursement for key products like WRAPSODY CIE remain the biggest near-term risk. The announcement, while positive, does not immediately resolve the most important revenue catalyst, which hinges on achieving outpatient reimbursement for WRAPSODY CIE in major markets. Among recent developments, Merit’s successful enrollment of the first WRAP North America registry patient stands out, as meaningful adoption and insurance coverage for WRAPSODY CIE could prove pivotal for earnings potential in upcoming quarters. In contrast, investors should also be aware that reimbursement setbacks for core products, especially if delays persist,

Read the full narrative on Merit Medical Systems (it's free!)

Merit Medical Systems is projected to reach $1.8 billion in revenue and $197.2 million in earnings by 2028. This outlook assumes a 7.0% annual revenue growth rate and an increase in earnings of $78.1 million from the current $119.1 million.

Uncover how Merit Medical Systems' forecasts yield a $103.55 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community estimate merit's fair value between US$80.44 and US$103.55, reflecting a broad spectrum of price targets. While opinions are varied, the impact of expanded Embosphere indications illustrates how catalysts can quickly shift consensus and affect the company's performance outlook.

Explore 2 other fair value estimates on Merit Medical Systems - why the stock might be worth 6% less than the current price!

Build Your Own Merit Medical Systems 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 Merit Medical Systems research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Merit Medical Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Merit Medical Systems' overall financial health at a glance.

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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.

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