Needham cuts Surmodics to Hold on SurVeil approval delay

Needham analyst Mike Matson downgraded Surmodics to Hold from Buy after the company’s Q1 earnings and update last week. The analyst notes that SurVeil is unlikely to receive FDA approval until late 2023 at the earliest, and in the meantime, while Pounce and Sublime sales are ramping, they are still too small to move the needle much on the company’s overall growth rate. Abbott’s (ABT) acquisition of Cardiovascular Systems (CSII) also creates additional uncertainty about SurVeil, the firm tells investors in a research note.