Cowen raised its price target for TransMedics (NASDAQ:TMDX) to $44 from $20, citing multiple catalysts ahead for all three of the company’s organ programs. The stock closed at $23.82 on Feb. 23.
TransMedics has developed its Organ Care System (OCS), which addresses the limitations of cold storage by replicating many aspects of the organ’s natural living environment outside of the body, increasing the supply of organs for transplant.
Analyst Joshua Jennings, M.D., writes that TransMedics should have a breakout year, with all three organ programs poised to generate U.S. commercial sales by year-end.
“The next catalyst is the FDA panel for DBD Heart, which we think will occur in April or May, enabling a U.S. approval early in the second half of 2021,” he said, adding that an update on the panel’s timing is expected next week.
“With one existing PMA approval for OCS Lung and several additional PMAs on the horizon, we believe TransMedics is approaching a significant inflection point that will result in the OCS system leading a new multibillion-dollar medical device category,” Dr. Jennings said.
