Abiomed’s Less Troubled 2020 Justifies Multiple, But Medium-Term Headwinds Mean Capital Risk


  • Abiomed is a company with a superb product in the mid-market space while what appears on the surface is an extremely high multiple.
  • While the multiple appears high at first, it does actually reflect the profile of the company on a more normalised basis, where it is currently experiencing headwinds.
  • The secular outlook is obviously intact, but given the high multiple and the unknown length of the medium-term headwinds, it is not an especially compelling opportunity.
Human Heart

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Abiomed (NASDAQ:ABMD) is a specialised and leading provider of mechanical circulatory support devices seeing use in the catheter lab. Their business model revolves around obtaining PMAs, which apply to their Impella family of devices which are all Class III and maximally

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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