Shares of Shockwave Medical (NASDAQ:SWAV) popped 17.8% on Tuesday, following the release of the healthcare company’s first-quarter results.
Shockwave Medical’s revenue soared 110% year over year to $31.9 million. The gains were fueled by the U.S. launch of the medical device maker’s new Shockwave C2 product, which uses sonic waves that break up calcium deposits in arteries.
CEO Doug Godshall said that following Food and Drug Administration (FDA) approval of the device in February, Shockwave Medical is “well-positioned to continue to expand our reach in helping to treat patients with severely calcified arterial disease.”
Shockwave delivered a net loss of $23.6 million, or $0.68 per share, compared to a loss of $18.8 million in the prior-year period. The company is ramping up its sales force to support the launch of its new device. Yet despite these expenses, Shockwave remains well funded, with $177.4 million in cash and investments on its balance sheet at the end of March.
Shockwave’s intravascular lithotripsy (IVL) technology could be a game changer. The process is considered to be safer than other methods of treating calcium deposits in arteries. In turn, the company pegs its addressable market at $6 billion.
Looking ahead, management expects Shockwave’s full-year revenue to rise as much as 202% to $205 million in 2021.
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