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LIVN

LivaNova

$98.00

-22.28 (-18.52%)

18:26
11/20/18
11/20
18:26
11/20/18
18:26

LivaNova price decline on CMS disclosure on TRD overdone, says Piper Jaffray

Piper Jaffray analyst Matt O'Brien kept his Overweight rating and $145 price target on LivaNova after the company's call to address the decision by U.S. Centers for Medicare & Medicaid Services regarding its National Coverage Determination for the LivaNova Vagus Nerve Stimulation Therapy System for Treatment-Resistant Depression, or TRD. The analyst states that his long-term TRD thesis is "largely unchanged", noting that the price decline today is likely overdone "given the potential for broad-based approval in 2020 or earlier assuming positive trial endpoints".

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LIVN LivaNova
$98.00

-22.28 (-18.52%)

11/13/18
PIPR
11/13/18
NO CHANGE
Target $145
PIPR
Overweight
Piper sees 'significant value' in LivaNova pipeline, boosts target to $145
After spending "several weeks" assessing LivaNova's known product pipeline in four key areas, Vagus Nerve Stimulation for treatment-resistant depression and congestive heart failure, along with ImThera for obstructive sleep apnea and Caisson for mitral valves, Piper Jaffray analyst Matt O'Brien believes the value of the company's portfolio today is $117 per share. This roughly doubles the current market capitalization by addressing total addressable markets of $70B, O'Brien tells investors in a research note titled "Deep Dive on Product Pipeline; We Believe Significant Value Creation Exists." The analyst sees LivaNova obtaining a favorable coverage decision in treatment-resistant depression based on his assessment of the factors Medicare illuminated 11 years ago, which he believes the company has sufficiently addressed. He thinks treatment-resistant depression is worth nearly $80 to the stock, of which he believes $25 is already priced in. O'Brien encourages investors to start or build positions and reiterates an Overweight rating on LivaNova. He boosted his price target for the shares to $145 from $135. The stock closed yesterday down 3%, or $3.48, to $115.33.
11/20/18
PIPR
11/20/18
NO CHANGE
Target $145
PIPR
Overweight
LivaNova shares likely weak today on CMS proposal, says Piper Jaffray
Piper Jaffray analyst Matt O'Brien expects shares of LivaNova to be under pressure today after the Centers for Medicare & Medicaid Services last night issued its proposed coverage decision for vagus nerve stimulation to treat treatment-resistant depression. The proposal only includes payment for patients in a randomized control trial, which is more restrictive than expected by investors, O'Brien tells investors in a research note. However, he points out that the proposal still provides near-term revenue from the trial and covers patients that have already received a system to treat treatment-resistant depression. Further, the analyst believes enrolling the study will prove challenging and that there is the possibility that Medicare rolls back the decision in the final rule to provide coverage with a registry. Anything more than 5%-10% pullback today in shares of LivaNova would be overdone, says O'Brien. He keeps an Overweight rating on the name with a $145 price target.
11/20/18
JEFF
11/20/18
NO CHANGE
Target $150
JEFF
Buy
CMS proposal opens 'massive new market' for LivaNova, says Jefferies
The Centers for Medicare & Medicaid Services proposed to extend coverage for vagus nerve stimulation in treatment-resistant depression with the caveat that LivaNova must conduct a double-blind, randomized, placebo-controlled trial with one year follow-up, Jefferies analyst Raj Denhoy tells investors in a research note. However, should the company show positive interim results, coverage will then move to a registry, adds the analyst. He points out that the CMS also agreed to cover replacement devices in existing patients. While there is work to do, CMS agreeing to pay for treatment-resistant depression "opens the door to a massive new market" for LivaNova, says Denhoy. He arrives at a $50 per share for the value of treatment-resistant depression under the plan outlined by CMS. With the base business worth about $100 a share, the analyst continues to value LivaNova at $150 per share. He keeps a Buy rating on the name
11/20/18
STFL
11/20/18
NO CHANGE
Target $140
STFL
Buy
LivaNova CMS proposal 'directionally positive,' says Stifel
After CMS presented its "long-awaited" proposal decision memo for LivaNova's VNS Therapy for treatment resistant depression, Stifel analyst Rick Wise said the proposal contains some "frustrating elements," such as CMS requesting an additional randomized trial that potentially could delay full-Medicare coverage at least 12-24 months. However, the proposal is "still directionally positive," said Wise, who is encouraged that CMS did not close the door on VNS Therapy coverage, replacement for existing VNS patients will be covered and the path forward for ultimate coverage is now clearer. The analyst maintains a Buy rating and $140 price target on LivaNova shares.

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