LivaNova (LIVN) could see growth contributions starting in 2026 from its aura6000 hypoglossal nerve stimulation device for obstructive sleep apnea, Needham said in a Wednesday note.
The firm said LivaNova submitted the device for premarket approval and estimated potential FDA clearance in the first half of 2026. In its base-case scenario, Needham projects aura6000 could add 2.2% to annual revenue growth and 4.7% to annual earnings per share growth from 2026 to 2029.
The brokerage highlighted results from the osprey trial, which showed a 65% responder rate and a 68% reduction in apnea-hypopnea index at 12 months. The firm said LivaNova expects to launch the device after obtaining MRI compatibility approval, likely in late 2026.
The device could capture market share from Inspire Medical (INSP), with advantages including longer battery life, the ability to treat patients with complete concentric collapse, and no requirement for a drug-induced sleep endoscopy procedure.
Needham has a buy rating and a $64 price target on LivaNova.
Shares of LivaNova were down 1.4% in recent trading.
Price: 56.10, Change: -0.82, Percent Change: -1.44