Outset Medical falls as RBC downgrades to 'sector perform', cuts PT

Outset Medical

12/01/2024 15:59

** Shares of medical device maker Outset Medical  OM.O  fall
3.1% to $4.8 
    ** Brokerage RBC Capital downgrades stock to "sector
perform", cuts PT to $6 from $14 
    ** Factors impacting OM in 2H'23 to persist into 2024 - RBC
    ** Says factors like competitive misinformation relating to
usage and safety of its machines, staffing and lesser capital
spending by hospitals to persist into early 2024 for co
    ** OM paused the shipments of its dialysis machine TabloCart
with pre-filteration after receiving an FDA warning letter in
January 2023 following an inspection at its San Jose facility
     ** "The company originally estimated this to be a
low-single-digit million dollar impact, but later indicated a
larger-than-expected impact as customers paused Tablo console
purchases" - RBC 
    ** OM noted FDA warning letter had a greater impact on sales
than it originally expected as customers had been delaying the
purchases of its other dialysis machine until TabloCart with
pre-filteration gained safety clearance
    ** Stock fell 79% in 2023 

 (Reporting by Sneha  S K)
 ((Sneha.SK@thomsonreuters.com;))