Medical Device Maker Inari Medical, Inc. Faces DOJ Probe: What Investors Need to Know Before Buying

Irvine, California – In the vibrant hub of medical innovation in Irvine, California, Inari Medical, Inc., a leading medical device manufacturer specializing in the treatment of venous thromboembolism, or VTE, has garnered attention. The company’s focus on addressing pulmonary embolisms and other heart conditions places them at the forefront of the U.S. VTE market, estimated at around $6 billion. Despite weathering a slight setback following a Department of Justice (DOJ) probe earlier this year regarding payments to healthcare professionals, Inari Medical has shown resilience in the market.

Headquartered just outside Los Angeles, Inari Medical pioneers minimally invasive catheter-based devices for treating VTE, with a current market value of approximately $2.9 billion. While the company predominantly generates revenue domestically, there are plans to expand into international markets, particularly targeting Japan and China to make up 20% of total revenues. This strategic expansion aims to drive growth and diversification for the company.

In the latest quarterly report released on April 30th, Inari Medical posted financial results that exceeded expectations in revenue growth, reaching $143.2 million, a 23% increase year-over-year. Despite a GAAP loss of 42 cents per share, mostly attributed to non-recurring items, the company remains optimistic about achieving sustained profitability by the first half of 2025. With an upward adjustment in sales guidance for FY2024 and a promising pipeline of new products, Inari Medical is poised for continued growth in the medical device sector.

Analysts’ opinions on Inari Medical present a mixed outlook, with some reaffirming buy ratings and price targets ranging from $55 to $84 per share. However, concerns about heightened competition in the VTE space, particularly from companies like Penumbra, have influenced certain analysts to maintain hold or neutral ratings on Inari Medical. Insider selling and the shadow of the DOJ probe have also cast a temporary cloud over the company’s stock performance.

Looking ahead, Inari Medical’s trajectory towards profitability in the coming years is marked by ambitious sales growth projections and ongoing product development initiatives. While challenges remain, including varying earnings forecasts for the upcoming fiscal year, investors are cautious yet hopeful for the company’s potential in the evolving medical device landscape. As Inari Medical navigates through regulatory scrutiny and market dynamics, stakeholders watch closely for indications of sustained growth and operational efficiency in the years to come.