No. of Recommendations: 2
I'm not so sure about that one being easy to ramp up in a timely matter at all.

Yes and no. Keep in mind that there is a huge learning curve to Impella (or any medical device). Once a doctor feels comfortable they can ramp up volume, which requires little extra input. Each successful surgery strengthens the company's relationship with the doctor/staff, widening the moat. Its a trade off that I'm happy with.

The biggest risk here is valuation. If 30% operating margin is the peak then profit growth will equal revenue growth moving forward. I think that 25%-30% is sustainable for a while (maybe 5 years?), but even then the valuation is tough to swallow. Having said that, I like EVERYTHING about this business. I'm debating buying a little for myself.

Brian
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