Growing Thrombectomy Business Supports PEN Stock, Macro Issues Ail

Core Viewpoint - Penumbra is experiencing strong growth in its thrombectomy business, particularly in the U.S. market, but faces challenges from unfavorable currency movements and rising expenses [1][2][7]. Group 1: Business Performance - Penumbra's thrombectomy business is showing robust growth, with a 27.3% year-over-year increase in the fourth quarter of 2024 in the U.S., driven by the adoption of its CAVT products and new offerings like Lightning Flash 2.0 and Lightning Bolt 7 [2]. - The U.S. VTE franchise reported a revenue growth of 41% year-over-year, indicating strong market demand for Penumbra's products [2]. - Internationally, Penumbra derives 24.5% of its revenues and anticipates significant growth in both revenues and profitability in the coming years [3]. Group 2: Product Development - The company launched the Element Vascular Access System in January 2025, designed for venous thromboembolism treatments and compatible with the Lightning Flash 2.0 system [4]. - New products, including Lightning Bolt 12 and Lightning Bolt 6x with TraX, were introduced in 2025 to enhance thrombus management [5]. - Penumbra is focusing on innovations within its Flash and Bolt product lines to drive future growth [5]. Group 3: Financial Metrics - Over the past three months, Penumbra's shares have increased by 18.5%, outperforming the industry growth of 4.8%, reflecting the company's successful expansion efforts [6]. - In the fourth quarter of 2024, Penumbra faced a 7.3% rise in the cost of revenues and a 13.8% increase in selling, general, and administrative expenses, indicating rising operational costs [8]. Group 4: Market Challenges - Approximately 29% of Penumbra's consolidated revenues are exposed to foreign exchange rate fluctuations, which can impact sales and profitability [7]. - The company is also affected by global geopolitical issues that have led to supply chain disruptions and increased costs, putting pressure on profitability [8].