Latest news with #OrganCareSystem
Yahoo
15-05-2025
- Business
- Yahoo
2 Brilliant Stocks to Buy With $200 and Hold for 5 Years
TansMedics Group is helping improve patient outcomes in the organ transplant field. Exact Sciences has helped increase colorectal cancer detection. 10 stocks we like better than TransMedics Group › While being an innovative company doesn't guarantee superior long-term returns, it doesn't hurt those chances either. In fact, when a corporation is making important breakthroughs and boasts significant growth prospects in its industry, that could translate to above-average stock market performances over five years or more. That description fits TransMedics Group (NASDAQ: TMDX) and Exact Sciences (NASDAQ: EXAS), two innovative healthcare leaders. Here's why these companies could deliver strong returns through the end of the decade. TransMedics Group developed a revolutionary way to store organs before transplants. The company's Organ Care System (OCS) mimics the physiology of the human body, resulting in a higher usage rate for the organs it is approved for -- lungs, hearts, and kidneys -- than the traditional cold storage method. In a clinical trial, 32% of hearts kept in cold storage were used in a transplant, versus 81% for the OCS. The company's technology is superior; that's why it has gained traction. TransMedics Group has encountered some issues recently. The company's revenue growth slowed, while its guidance disappointed investors. Further, the medical device specialist became the target of serious allegations from an activist short-seller. However, TransMedics Group is rebounding, partly thanks to recent stronger-than-expected first-quarter results. TransMedics Group's stock jumped by about 20% on the heels of its most recent quarterly update. Still, the company's shares remain down by 11% in the past year, and there could be significant upside potential for the company in the next five years. TransMedics Group estimates that deceased donations of organs will continue to increase in the next few years. Meanwhile, there are more people in need of organs than the number of those willing to donate theirs. For the ones available, keeping them in the best possible shape for transplants is incredibly important. TransMedics Group's OCS is one of the better options on the market for doing just that. So, the company should continue growing its revenue and earnings at a good clip in the next five years, and likely beyond that. And in the meantime, the company could deliver excellent returns to investors. Investors can buy one of TransMedics Group's shares at current levels with $200. Exact Sciences is a healthcare company that develops cancer diagnostic tests. The company is best known for Cologuard, a non-invasive, at-home test for colorectal cancer (CRC) -- the second leading cause of cancer death worldwide. The fact that the disease is highly treatable when caught early, and yet kills as many patients as it does, suggests that not enough eligible people are getting screened. For those at average risk of CRC, it is recommended to start screening at 45 years old. Exact Sciences has made significant headway in this market. It first earned clearance for Cologuard in the U.S. in 2014; by 2022, it had been used to screen 10 million patients. Exact Sciences has encountered some headwinds in the past few years, including slower revenue growth and persistent net losses. However, recent developments could help the company fix this issue. In October, it earned approval for the next-gen version of its crown jewel, Cologuard Plus. This newer test proved superior at identifying true positives and false negatives, and should, therefore, help attract even more prescriptions from otherwise skeptical physicians. The new Cologuard is also 5% cheaper to manufacture. That should make a meaningful difference in the company's costs across millions of tests. Further, Exact Sciences recently launched Oncodetect, which is designed to check for cancer recurrence in patients across several solid tumors. Lastly, Exact Sciences plans to debut another product later this year, a multicancer-detecting test called Cancerguard. With these new products and the company's well-established Cologuard franchise, expect stronger revenue growth and, eventually, net profits before the end of the decade. The stock could deliver superior returns. Exact Sciences' shares are trading hands for just under $54, so $200 is good for three. Before you buy stock in TransMedics Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TransMedics Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy. 2 Brilliant Stocks to Buy With $200 and Hold for 5 Years was originally published by The Motley Fool
Yahoo
09-05-2025
- Business
- Yahoo
Why TransMedics Stock Is Skyrocketing Today
TransMedics delivered revenue and net income growth of 48% and 111% in its first-quarter earnings. The company continues to see streamlining efficiencies from its nascent logistical network. Solidly profitable and with a promising growth story, TransMedics remains one of my favorite investments. 10 stocks we like better than TransMedics Group › Shares of next-generation transplant technology platform TransMedics (NASDAQ: TMDX) were up 21% as of noon ET on Friday, according to data provided by S&P Global Market Intelligence. TransMedics reported first-quarter results that saw revenue balloon 48% and the company's net income margin rise from 13% a year ago to 18% today. On top of these results blowing away analysts' expectations, management raised its 2025 sales guidance from 23% at the midpoint to 30%, sparking an optimistic reaction from the market. TransMedics' Organ Care System (OCS) and National OCS Platform (NOP) have moved the organ transplant industry into a new era. As opposed to the less-effective, traditional ice storage previously used in transplants, the company's OCS keeps livers, hearts, and lungs perfused with blood and functioning while in transit to a donee. While this upgrade alone allows for longer travel time for donated organs (and higher success rates), TransMedics took things to the next level when it started to buy planes for its logistics services in 2023. Immediately put to use in 49% of NOP flight missions in Q1 of 2024, the company's planes now cover 78% of these flights in Q1 2025. This streamlining logistical network helped TransMedics' net income spike 111% from last year and makes the company a true end-to-end solution for organ transplants. However, just because TransMedics has seemingly reached new levels of profitability, don't think its growth days are over. Transplanting 3,715 organs in 2024 -- and I'd guess somewhere slightly above 1,000 in Q1 -- the company believes it can grow to 10,000 transplants by 2028. With its next-gen lung and heart systems -- the company's smaller segments -- set to enter clinical trials later this year, TransMedics should have plenty of growth ahead. Before you buy stock in TransMedics Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TransMedics Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Josh Kohn-Lindquist has positions in TransMedics Group. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy. Why TransMedics Stock Is Skyrocketing Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
1 Beaten-Down Stock to Buy Right Now and Hold for a Decade
President Donald Trump's trade war is creating significant uncertainty. Equities plunged following his decision to impose tariffs on almost every country, then soared after he announced a 90-day pause on his expanded tariff plans. It's challenging to predict which way the market will move next, but in times like these, it helps to invest in companies that look likely to perform well in the long run. Consider the case of TransMedics Group (NASDAQ: TMDX), a medical technology company whose shares have declined by 31% over the past six months. Let's find out why it's worth it to buy this company's shares and hold on to them for the next decade. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » First, let's review what TransMedics does. The company developed a device called the Organ Care System (OCS) to help store donor organs -- not a simple thing to do. Once they're removed from their natural habitat (the human body), organs deteriorate quickly, making them unusable for transplants. There are already far more patients in need of donor organs than the number of people willing to donate, so keeping the ones that are available in a healthy condition is of the utmost importance. While other options exist, TransMedics' OCS mimics the physiology of the human body, helping organs stay in good shape and remain ready for transplant longer. The U.S. Food and Drug Administration has approved the company's OCS to preserve lungs, hearts, and livers for transplants. TransMedics typically generates strong revenue, and it finally turned in a profit last year: Why, then, have TransMedics shares dropped lately? There are three main reasons. First, the company's latest updates, particularly for the third quarter, came in short of analyst expectations. Second, in December, it lowered its guidance for the fourth quarter, which came as a disappointment to investors. Lastly, short-seller Scorpion Capital published a highly critical report questioning the company's practices. While TransMedics quickly issued a denial, the stock still plunged following these developments. Despite these headwinds, it might be worth it to buy TransMedics shares today and hold on to them for the next decade. Here's why. One factor that could drive TransMedics Group's results over the next 10 years is growth in the number of organ donors. Another is the company's superior technology, which helps improve outcomes. Let's address each of these factors. First, an organ transplant is often needed to treat end-stage organ failure. But since we're talking about vital organs, most living humans aren't going to be quick to volunteer to donate their own, even when they can -- it's feasible for kidneys, but not so much for hearts. Even so, the number of people who donate after death has increased in recent years. In the U.S., this trend is expected to continue for the foreseeable future. TransMedics sees a compound annual growth rate of 5% as a conservative estimate, and 12% for the optimistic projection, through 2028. This is good for both patients and TransMedics' business. Second, the traditional method of storing organs before transplants -- cold storage -- comes with significant limitations. Cold storage can quickly damage organ tissue, making it unusable for transplants, among other problems. TransMedics' approach leads to much higher utilization rates for available organs. For instance, within the lung transplant space, only 23% of donated organs kept through cold storage end up being used -- but 87% of those stored through TransMedics' OCS are utilized for transplants. That's a massive difference, which points to TransMedics' ability to grab an increasingly higher share of this market while increasing its revenue and earnings. What should investors make of the recent issues it encountered? Slowing revenue growth is almost inevitable as a company matures. Perhaps this justifies the recent sell-off TransMedics experienced, but the stock is now almost as cheap as it's been in three years: Finally, note that you should always take the word of short-sellers -- who make money from a company's share price dropping -- with a grain of salt. Without convincing evidence that TransMedics is guilty as charged, it's best to ignore the noise. In my view, this healthcare stock remains a top pick for investors who are willing to stay the course over the next decade. If you initiate a position at current levels, TransMedics Group could deliver excellent results. Before you buy stock in TransMedics Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TransMedics Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $606,106!* Now, it's worth noting Stock Advisor's total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy. 1 Beaten-Down Stock to Buy Right Now and Hold for a Decade was originally published by The Motley Fool Sign in to access your portfolio
Associated Press
10-04-2025
- Business
- Associated Press
TransMedics Group (TMDX) Financial Success Faces Legal Scrutiny Amid Allegations
SAN FRANCISCO, April 10, 2025 (GLOBE NEWSWIRE) -- TransMedics Group, Inc. (NASDAQ: TMDX) reported blockbuster Q4 2024 earnings in late February 2025, booking $121.6 million in revenue (up 50% year-over-year) and $35.5 million in full-year net income, fueled by surging adoption of its OCS devices. Despite these positive results, TMDX stock continues to trade significantly below its 2024 highs, as the earnings report arrives amid explosive allegations from short-seller Scorpion Capital and mounting legal challenges, including an investor class action lawsuit accusing the company and its senior executives of securities fraud. Hagens Berman is investigating the alleged claims and urges investors who purchased TransMedics shares and suffered substantial losses to submit your losses now. Lead Plaintiff Deadline: Apr. 15, 2025 Visit: 844-916-0895 Growth Fueled by Market Dominance On February 27, TransMedics released positive earnings and guidance exceeding analysts' expectations. The company completed 3,715 U.S. OCS cases in 2024, capturing 20.9% market share across heart, lung, and liver transplants—a 58% annual increase. Its logistics fleet now includes 19 aircraft, with two more planned for 2025 to support a projected revenue of $530M-$552M, exceeding Wall Street consensus of $521.62M. But TDMX shares showed a muted reaction to the company's strong Q4 results and remain 58% below 52-week highs. Investors have grown increasingly skeptical about the company's long-term profitability, with concerns around compressing margins and adoption hurdles. The Scorpion Report Investors' fears were exacerbated by a highly critical short report issued by Scorpion Capital on January 10, 2025. The report, titled 'Walk Like An Egyptian: A 'Mafia-Style' Extortion, Racketeering, and Organ Trafficking Scheme Masquerading as a Medical Device Company,' spans 342 pages and alleges severe misconduct, including kickbacks, billing fraud, unreported device failures, off-label misuse, and monopolistic practices. It claims TransMedics is in a 'death spiral' and sets a target price of $0 for the stock. Key allegations in the report include: Racketeering and monopolistic practices tied to its Organ Care System (OCS) technology. Off-label usage and safety concerns regarding its devices. Excessive pricing for bundled services compared to alternatives. Claims of organ trafficking and unethical business practices. Shares plummeted 15% after Scorpion's January 10 report. The TransMedics Group (TDMX) Class Action Adding to the controversy, TransMedics and its executives are now defendants in a securities class action lawsuit filed in the U.S. District Court for Massachusetts. The complaint alleges that between February 28, 2023, and January 10, 2025—the period encompassing FDA approvals and rapid market expansion—the company misled investors about its business practices. Echoing Scorpion Capital's claims, it accuses TransMedics of: Using kickbacks and coercive tactics to drive revenue growth; Concealing safety issues tied to its OCS devices; Overbilling hospitals while forcing them into bundled service contracts. The lawsuit further claims that these practices subjected TransMedics to heightened regulatory scrutiny, culminating in public allegations from U.S. Representative Paul Gosar in February 2024 about price gouging and resource misappropriation. Hagens Berman's Investigation Prominent class action law firm Hagens Berman is investigating whether TransMedics may have violated the U.S. securities laws. 'We are looking into whether TransMedics' growth was fueled by undisclosed illicit sales practices,' said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in TransMedics and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the TransMedics case and our investigation, read more » Whistleblowers: Persons with non-public information regarding TransMedics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. Contact:
Yahoo
29-03-2025
- Business
- Yahoo
TransMedics Group Stock: A Millionaire-Maker in the Making?
TransMedics Group (NASDAQ: TMDX) once ranked among the hottest healthcare stocks around. Shares of the medical technology company delivered a gain of more than ninefold between the beginning of 2022 and late August of 2024. However, TransMedics has become a dumpster fire for investors since then. The stock plunged roughly 60%. But such sell-offs can sometimes present great opportunities for forward-thinking investors. Could TransMedics Group stock be a millionaire-maker in the making? I think TransMedics Group has many of the right ingredients needed to be a massive winner. Most importantly, the company markets a potentially game-changing product. For decades, the standard of care in transporting donor organs was cold storage. There are two main problems with this approach, though. First, many of the organs never make it to their intended recipients in condition to be used. Second, post-transplant complications often occur. TransMedics brought a solution to these problems with the 2018 launch of its Organ Care System (OCS) for transporting donor lungs. The company secured regulatory clearances for OCS in hearts and livers in 2021. OCS uses warm-perfusion technology that keeps donor organs alive outside the body: Lungs "breathe," hearts beat, and livers produce bile. The percentage of donor organs that are usable is much higher with OCS than with cold storage. Severe post-transplant complications are also significantly reduced. TransMedics Group is already profitable. Its revenue continues to grow rapidly, jumping 50% year over year in the fourth quarter of 2024. The company is expanding the organ transplant market through its National OCS Program, which provides a turnkey solution that includes organ procurement and logistics services. In addition, TransMedics is developing a more powerful next-generation version of OCS as well as working to expand the system to support kidney transplants. With all of those positives, why has TransMedics' stock sank like a brick in recent months? First, the company announced disappointing third-quarter results on Oct. 28, 2024. Although TransMedics reported revenue jumped 64% year over year in Q3 to $108.8 million, analysts were expecting revenue of $115 million. Its Q3 earnings per share of $0.12 also fell far short of the consensus estimate of $0.29. While investors questioned whether or not TransMedics' Q3 results were an anomaly or an indication of a larger problem, another shoe dropped in January 2025. Short-seller Scorpion Capital published a scathing report alleging that TransMedics committed billing fraud and didn't report device failures. Scorpion also claimed that alternatives to OCS, such as abdominal normothermic regional perfusion, are "radically cheaper." The short-seller even formally requested that the U.S. Food and Drug Administration (FDA) suspend its pre-market approval of OCS. TransMedics quickly responded, stating in a press release, "We strongly believe that the claims made in the Scorpion Capital report have no merits and were primarily intended to manipulate the market for financial gains." The company announced on Feb. 27, 2025, that an independent review of its business practices conducted by the law firm Kirkland & Ellis LLP with assistance from an outside forensic accounting firm "identified no evidence of misconduct." TransMedics also submitted a response to the FDA that it believes effectively refutes allegations made by Scorpion Capital. Scorpion Capital predicted "a customer exodus and rapidly unfolding death spiral" that could lead to TransMedics Group's shares ultimately being worthless. That doesn't sound like a millionaire-maker in the making. This gloomy scenario hasn't materialized so far, though. TransMedics beat Wall Street earnings estimates with its 2024 Q4 results. Maybe TransMedics Group stock could make some shareholders millionaires over the long term. However, I doubt that an investment of $10,000 will grow to $1 million over the next two decades. Importantly, significant growth is already baked into the share price with TransMedics' forward price-to-earnings multiple of 47. Still, I think TransMedics stock could return to its winning ways for investors, assuming the company moves past the dark cloud hanging over its head. A stock doesn't have to be a millionaire-maker to be a good pick. Before you buy stock in TransMedics Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TransMedics Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,245!* Now, it's worth noting Stock Advisor's total average return is 845% — a market-crushing outperformance compared to 165% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TransMedics Group. The Motley Fool has a disclosure policy. TransMedics Group Stock: A Millionaire-Maker in the Making? was originally published by The Motley Fool Sign in to access your portfolio
