Plasma franchise guidance
Haemonetics (HAE) expects its plasma franchise to report year-over-year (or YoY) revenue growth in the range of 7% to 10% in fiscal 2019. The company expects to surpass the YoY organic revenue growth of 8.5% for the company’s plasma franchise in North America in fiscal 2018 with YoY revenue growth in the range of 10% and 14% in fiscal 2019 in the North America market. The company has also included $40 million worth of non-commercial revenues in its fiscal 2019 revenue guidance for its plasma franchise attributable to the sale of plasma collection kits mainly to international blood center customers.
To know more about the performance of Haemonetics’s plasma franchise in fiscal 2018, read Plasma Continues to Drive Strong Growth for HAE in Fiscal 2018.
The above diagram highlights the key growth drivers for Haemonetics’s plasma business and the company’s product strategy to leverage this opportunity. The plasma business is thus expected to enable Haemonetics to compete effectively with other medical device players such as Medtronic (MDT), Abbott Laboratories (ABT), and Stryker (SYK) for investor dollars.
Haemonetics has included estimates related to expenses required for the initial deployment of NexSys PCS as well as depreciation expenses in its fiscal 2019 guidance. However, since the uptake of the product is expected to accelerate in the second half of fiscal 2019, the company expects to see a significant benefit from this launch starting in fiscal 2020.
Plasma franchise performance in fiscal 2018
In the fourth quarter of fiscal 2018, Haemonetics’s plasma franchise reported revenues close to $111.6 million, which is YoY growth of 10.6% on a reported basis and 10.5% YoY growth on a constant currency (or CC) basis. In fiscal 2018, the company reported revenues close to $436 million, which is a YoY rise of 6.1% on a reported basis and 7.1% on a CC basis. This performance was mainly driven by solid demand for disposables and software required for plasma collection in North America.
In the next article, we’ll discuss the ongoing launch of NexSys PCS in fiscal 2019 in greater detail.