TransMedics selloff on competitor clearance unwarranted, says TD Cowen

TD Cowen says TransMedics (TMDX) shares are under pressure after Bridge to Life’s VitaSmart received FDA clearance for liver transplantation. While VitaSmart is “technically competition” to TransMedics’ OCS Liver, the system employs a back-to-base model using static cold storage, followed by hyperoxygenated perfusion in a bowl, the analyst tells investors in a research note. As a result, TD does not view VitaSmart as a threat to OCS Liver. Bridge to Life’s system is “vastly different” from TransMedics’ as it is not portable and does not allow surgeons to utilize biomarkers to assess organ function in the way that OCS Liver does, the firm contends. It continues to think TransMedics will maintain its dominance as new machine perfusion options come to market for liver. The firm views the selloff in shares today as unwarranted and reiterates a Buy rating on TransMedics with a $170 price target The stock in afternoon trading is down 5% to $134.39.