Merit Medical’s novel WRAPSODY endovascular graft system has secured favorable reimbursement decisions from key U.S. payers, driving a projected 12% uplift in procedure volumes for fiscal 2024. Medicare recently increased its facility payment rates for outpatient WRAPSODY procedures by 8%, effective January, and commercial insurers have followed suit with similar rate increases averaging 7%. This reimbursement momentum is expected to contribute an incremental $15 million in annual revenue run-rate by year-end, supporting the company’s broader objective of accelerating peripheral vascular product adoption across over 450 U.S. centers.

Merit Medical continues to diversify its high-margin disposable device portfolio, adding two new catheter platforms scheduled for commercial launch in Q3 2024. Management forecasts these products will achieve a combined 25% gross margin within 12 months of launch, compared with the company’s current average disposable margin of 22%. Strong cash flow generation remains a hallmark of the business, with operating cash flow rising 18% year-over-year to $110 million in the first nine months of fiscal 2024, enabling ongoing reinvestment in R&D and modest debt paydown without tapping equity capital.

Merit Medical has beaten consensus earnings estimates in eight of the past ten quarters, delivering an average upside of 6% per quarter. The company’s two key beat drivers—higher procedural volumes in the U.S. and cost leverage from manufacturing automation—remain intact. Analysts project adjusted EPS growth of 14% in fiscal 2024, with potential for further upside if European procedure mix shifts favor the company’s premium vascular access products. Even in light of currency headwinds from a stronger U.S. dollar, Merit’s hedging program and efficient cost structure could preserve approximately 75% of its international revenue in local-currency terms.