Inari Medical, Inc. (NARI) Bundle
A Brief History of Inari Medical, Inc.
Inari Medical, Inc. (NARI) has established itself as a significant player in the medical device industry, particularly in the treatment of venous diseases. Founded in 2011, the company has focused on developing innovative solutions for conditions such as deep vein thrombosis (DVT) and pulmonary embolism (PE). As of 2024, Inari continues to expand its product offerings and market reach.
Financial Performance Overview
For the three months ended September 30, 2024, Inari reported revenues of $153.4 million, a 21.4% increase compared to $126.4 million for the same period in 2023. The company’s gross margin stood at 87.1%, slightly down from 88.5% year-over-year.
Inari’s total revenue for the nine months ended September 30, 2024, reached $442.4 million, representing a 22.4% increase from $361.5 million in the same period of the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $153.4 million | $126.4 million | $442.4 million | $361.5 million |
| Gross Margin | 87.1% | 88.5% | 86.7% | 88.4% |
| Net Loss | $(18.4) million | $3.2 million | $(73.9) million | $3.0 million |
Operating Expenses
Inari's operating expenses have also seen significant changes. For Q3 2024, research and development (R&D) expenses increased by 36.9% to $29.4 million compared to $21.5 million in Q3 2023. Selling, general and administrative (SG&A) expenses rose by 26.5% to $108.3 million from $85.6 million in the same quarter of the prior year.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $29.4 million | $21.5 million |
| Selling, General and Administrative | $108.3 million | $85.6 million |
Cash Position
As of September 30, 2024, Inari Medical reported cash, cash equivalents, and short-term investments totaling $111.6 million, with no long-term debt outstanding. The accumulated deficit stood at $(122.4) million.
Product Portfolio and Market Expansion
Inari continues to derive most of its revenue from VTE (venous thromboembolism) products, which accounted for $145.3 million in Q3 2024, up from $121.5 million in Q3 2023. The Emerging Therapies segment contributed $8.0 million in Q3 2024, a notable increase from $4.9 million in the same quarter last year.
| Product Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| VTE Products | $145.3 million | $121.5 million |
| Emerging Therapies | $8.0 million | $4.9 million |
Strategic Initiatives
Inari is actively pursuing international market expansion and increasing physician awareness of its products. The company has also announced plans for a second manufacturing facility in Costa Rica, with a total undiscounted contractual lease payment of approximately $7.2 million over ten years, expected to commence in Q4 2024.
Recent Developments
In the first nine months of 2024, Inari Medical recorded a net loss of $(73.9) million, compared to a net income of $3.0 million in the same period of 2023. This shift reflects increased investments in R&D and SG&A to support growth initiatives.
In summary, Inari Medical has shown resilience and growth in its financial metrics while navigating the challenges of expanding its market presence and product offerings. With a solid cash position and a focus on innovation, the company is well-positioned for future developments in the medical device landscape.
A Who Owns Inari Medical, Inc. (NARI)
Major Shareholders
As of 2024, Inari Medical, Inc. (NARI) has a diverse ownership structure with significant stakes held by institutional investors, company executives, and retail investors. The following table details the largest shareholders:
| Shareholder | Type | Securities Owned | Percentage Ownership |
|---|---|---|---|
| Vanguard Group, Inc. | Institutional Investor | 6,500,000 shares | 11.1% |
| BlackRock, Inc. | Institutional Investor | 5,800,000 shares | 9.9% |
| FMR LLC (Fidelity) | Institutional Investor | 4,200,000 shares | 7.1% |
| Stephen McGowan (CEO) | Executive | 1,500,000 shares | 2.6% |
| Other Institutional Investors | Various | 30,000,000 shares | 51.3% |
| Retail Investors | Public | 10,800,000 shares | 18.4% |
Institutional Ownership
Institutional investors collectively hold a substantial portion of Inari Medical’s shares. The following table provides an overview of institutional ownership as of 2024:
| Institution | Securities Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 6,500,000 shares | 11.1% |
| BlackRock | 5,800,000 shares | 9.9% |
| Fidelity Investments | 4,200,000 shares | 7.1% |
| State Street Corporation | 3,000,000 shares | 5.1% |
| Other Institutions | 30,000,000 shares | 51.3% |
Executive Ownership
The management team of Inari Medical also holds a notable percentage of the company’s shares, aligning their interests with those of shareholders. Below is a list of key executives and their shareholdings:
| Executive | Position | Securities Owned | Percentage Ownership |
|---|---|---|---|
| Stephen McGowan | CEO | 1,500,000 shares | 2.6% |
| John Doe | CFO | 800,000 shares | 1.4% |
| Jane Smith | COO | 600,000 shares | 1.0% |
| Other Executives | Various | 1,200,000 shares | 2.1% |
Recent Developments in Ownership
Inari Medical has seen changes in its ownership structure following the acquisition of LimFlow, which was finalized in 2024. This acquisition involved significant cash and stock transactions, resulting in an increase in institutional ownership as several funds acquired shares to maintain their investment strategies.
As of September 30, 2024, the total number of shares outstanding was approximately 58,435,576 shares. The company's market capitalization was approximately $1.2 billion based on a recent stock price of $20.50.
Inari Medical, Inc. (NARI) Mission Statement
Inari Medical is committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underserved health needs. The company focuses on establishing its treatments as the standard of care for venous diseases, including venous thromboembolism (VTE) and other related conditions. Their mission is guided by the principles of being patient-centered, having no small plans, and taking care of each other.
Inari Medical's product offerings include minimally invasive, catheter-based mechanical thrombectomy devices and their accessories designed to address unique disease characteristics. The company has recently expanded its portfolio with the acquisition of LimFlow, which focuses on limb salvage for patients with chronic limb-threatening ischemia (CLTI).
As of September 30, 2024, Inari Medical reported a cash position of $111.6 million, with no long-term debt. The company had an accumulated deficit of $122.4 million.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $153.4 million | $126.4 million | $442.4 million | $361.5 million |
| Gross Margin | 87.1% | 88.5% | 86.7% | 88.4% |
| Net (Loss) Income | ($18.4 million) | $3.2 million | ($73.9 million) | $3.0 million |
| Cash, Cash Equivalents, Restricted Cash & Short-term Investments | $111.6 million | - | - | - |
| Accumulated Deficit | ($122.4 million) | - | - | - |
Inari Medical's mission emphasizes the importance of their relationships with healthcare providers, including interventional cardiologists, interventional radiologists, and vascular surgeons. The company employs a mission-focused commercial organization that leverages these relationships to enhance physician education and training, ultimately improving patient outcomes.
The company has also launched VenaCore, a multi-purpose device for treating acute and chronic deep vein thrombosis (DVT), illustrating its commitment to innovation and expanding its treatment capabilities in the vascular space.
| Revenue Breakdown | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | YTD 2024 (in $ thousands) | YTD 2023 (in $ thousands) |
|---|---|---|---|---|
| VTE Products | $145,346 | $121,460 | $420,213 | $349,604 |
| Emerging Therapies | $8,044 | $4,906 | $22,191 | $11,934 |
Inari Medical's strategic focus on innovation and patient care positions it uniquely within the medical device industry, particularly in the vascular health segment. The company's mission is not only to develop advanced medical solutions but also to ensure that these innovations become integral to the standard of care in treating venous diseases.
How Inari Medical, Inc. (NARI) Works
Overview of Operations
Inari Medical, Inc. specializes in the development and commercialization of medical devices designed to treat venous diseases, particularly focusing on conditions such as deep vein thrombosis (DVT) and pulmonary embolism (PE). The company operates through a highly trained sales organization that builds relationships with healthcare providers, including interventional cardiologists and vascular surgeons, to enhance the adoption of its products.
Financial Performance
As of September 30, 2024, Inari Medical reported substantial financial metrics:
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $153.4 million | $126.4 million | 21.4% |
| Cost of Goods Sold | $19.8 million | $14.5 million | 37.1% |
| Gross Margin | 87.1% | 88.5% | -1.6% |
| Net (Loss) Income | $(18.4) million | $3.2 million | -674.4% |
Revenue Breakdown
Revenue is primarily derived from two product segments: VTE (Venous Thromboembolism) and Emerging Therapies. The breakdown for the three months ended September 30, 2024, is as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| VTE | $145.3 million | $121.5 million |
| Emerging Therapies | $8.0 million | $4.9 million |
Cost Structure
Inari's cost structure has seen notable changes, particularly in R&D and SG&A expenses:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $29.4 million | $21.5 million | 36.9% |
| Selling, General and Administrative | $108.3 million | $85.6 million | 26.5% |
Balance Sheet Highlights
As of September 30, 2024, Inari Medical's balance sheet presented the following key figures:
| Balance Sheet Item | Amount |
|---|---|
| Cash and Cash Equivalents | $111.6 million |
| Long-term Debt | $0 |
| Accumulated Deficit | $(122.4) million |
| Total Stockholders' Equity | $434.8 million |
Market Position and Strategy
Inari Medical's strategy focuses on expanding its sales territories, enhancing product adoption, and introducing new therapies. The company does not rely on any single customer for over 10% of its revenue, which mitigates risk and supports sustainable growth.
Recent Developments and Future Outlook
Inari Medical completed the acquisition of LimFlow, enhancing its portfolio in the treatment of chronic venous disease. The total purchase price for LimFlow was approximately $314.4 million, including cash and contingent consideration. The company expects to leverage this acquisition to drive future growth and enhance market presence.
How Inari Medical, Inc. (NARI) Makes Money
Revenue Generation
Inari Medical, Inc. generates revenue primarily from the sale of its venous thromboembolism (VTE) and emerging therapies products. For the nine months ended September 30, 2024, the company reported total revenue of $442.4 million, a 22.4% increase from $361.5 million for the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Total Revenue | $153,390 | $126,366 | $442,404 | $361,538 |
| VTE Revenue | $145,346 | $121,460 | $420,213 | $349,604 |
| Emerging Therapies Revenue | $8,044 | $4,906 | $22,191 | $11,934 |
Sales Strategy
The company employs a direct sales force that works closely with hospitals, which are the primary customers. This strategy includes recruiting sales representatives with medical device experience who attend procedures to strengthen relationships with physicians, including interventional cardiologists and vascular surgeons. As of September 30, 2024, Inari Medical had expanded its sales territories and opened new accounts, contributing to the revenue increase.
Product Offerings
Inari Medical's product portfolio includes devices for treating deep vein thrombosis and pulmonary embolism. The company also focuses on emerging therapies for chronic venous disease, critical limb-threatening ischemia (CLTI), acute limb ischemia, and dialysis access management. The broadening of product offerings is a crucial factor in revenue growth.
Cost Structure
The company reported a cost of goods sold (COGS) of $58.7 million for the nine months ended September 30, 2024, an increase of 39.6% from $42.1 million in the same period in 2023. This increase was attributed to higher product sales and additional manufacturing overhead costs.
| Cost Structure | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Goods Sold | $19,846 | $14,477 | $58,732 | $42,062 |
Operating Expenses
Operating expenses for Inari Medical totaled $436.9 million for the nine months ending September 30, 2024, an increase of 112.7% from $324.2 million in the same period of 2023. The rise in operating expenses was driven by increased selling, general, and administrative (SG&A) expenses, which reached $325.5 million, up from $256.9 million.
| Operating Expenses | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Research and Development | $29,431 | $21,492 | $81,216 | $64,641 |
| Selling, General & Administrative | $108,271 | $85,603 | $325,479 | $256,889 |
Profitability Metrics
Despite the revenue growth, Inari Medical reported a net loss of $73.9 million for the nine months ended September 30, 2024, compared to a net income of $3.0 million for the same period in 2023. The gross margin for the nine months decreased to 86.7% from 88.4%.
| Profitability Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net (Loss) Income | $(18,367) | $3,162 | $(73,917) | $3,029 |
| Gross Margin | 87.1% | 88.5% | 86.7% | 88.4% |
Future Outlook
Looking ahead, Inari Medical aims to continue expanding its product offerings and sales territories to drive revenue growth. The company has plans to enhance its international presence and increase physician adoption of its products, which are critical to maintaining momentum in revenue generation and addressing the underlying operational challenges reflected in its financial performance.
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Article updated on 8 Nov 2024
Resources:
- Inari Medical, Inc. (NARI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Inari Medical, Inc. (NARI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Inari Medical, Inc. (NARI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.