CSII - Cardiovascular Systems downgraded at Guggenheim on reimbursements and competition

Cardiovascular Systems (NASDAQ:CSII) is trading ~1.7% lower in the pre-market after Guggenheim downgraded the stock to Neutral from Buy, citing headwinds related to reimbursement rates and competition. While the medical device company lagged firm’s expectations only marginally during the just-concluded quarter amid COVID-19 impact on MedTech space, the analysts led by Chris Pasquale highlight other worrying trends noted by management. Noting a sharp reduction in reimbursement rates for office-based labs after the Final 2022 schedules issued by the Centers for Medicare & Medicaid Services (CMS), the analysts expect the consolidation in the OBL market to impact profitability with lower selling prices. The firm also points to competitive pressure on the company’s orbital atherectomy franchise with the entrance of Shockwave Medical's (NASDAQ:SWAV) intravascular lithotripsy, especially after CMS's recent decision to reimburse above the knee IVL procedures at a higher rate. The analysts note that many issues will drag on for several quarters delaying a potential

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Cardiovascular Systems downgraded at Guggenheim on reimbursements and competition