{"id":28895,"date":"2025-05-03T23:56:00","date_gmt":"2025-05-03T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=28895"},"modified":"2025-11-07T11:25:10","modified_gmt":"2025-11-07T03:25:10","slug":"transmedics-ocs","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/","title":{"rendered":"TransMedics, an expert in organ transplant care systems"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Founding_of_the_company\" >Founding of the company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Importance_of_this_company\" >Importance of this company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Business\" >Business<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Main_business_and_products\" >Main business and products<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Market_demand\" >Market demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Product\" >Product<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#OCS\" >OCS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Product_billing\" >Product billing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#NOP_plan\" >NOP plan<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Competitive_landscape\" >Competitive landscape<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#The_only_FDA-approved_device_for_multiple_organs\" >The only FDA-approved device for multiple organs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Significant_Acquisitions\" >Significant Acquisitions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Market\" >Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Potential_market\" >Potential market<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#The_monopoly_is_broken\" >The monopoly is broken<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#The_past_rivals\" >The past rivals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Ever_closed_to_monopoly\" >Ever closed to monopoly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Reasons_for_the_revenue_slowdown\" >Reasons for the revenue slowdown<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Operating_performance\" >Operating performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#2024_Fourth_Quarter_Results\" >2024 Fourth Quarter Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Stock_pull_back_from_mid-2024_high\" >Stock pull back from mid-2024 high<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Market_Valuation\" >Market Valuation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Famous_Shareholders\" >Famous Shareholders<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Vanguard_Group\" >Vanguard Group<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Gotham_Asset_Management\" >Gotham Asset Management<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Negative_report\" >Negative report<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Scorpion_Capitals_short_report\" >Scorpion Capital&#8217;s short report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#TransMedics_response\" >TransMedics response<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Conclusion-2\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founding_of_the_company\"><\/span>Founding of the company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Dr. Waleed Hassanein, founder, president and CEO of <a href=\"https:\/\/www.transmedics.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">TransMedics (ticker: TMDX)<\/a>, founded TransMedics in 1998 to revolutionize organ transplantation therapy for the treatment of end-stage lung, heart and liver failure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_this_company\"><\/span>Importance of this company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company is focused on its innovative Organ Care System (OCS), which addresses key limitations of traditional refrigerated organ preservation methods by maintaining organs in a near-physiological state. This technology has had a major impact on the field of organ transplantation, leading to better outcomes in the treatment of end-stage organ failure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business\"><\/span>Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics is committed to changing the standard of care\u2014increasing organ utilization, improving patient outcomes, and reducing transplant costs. The Organ Care System (OCS) platform is a revolutionary technology used to preserve organs for the treatment of end-stage heart, lung and liver failure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_business_and_products\"><\/span>Main business and products<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_demand\"><\/span>Market demand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The heart and lungs must be transplanted within about four hours of being removed from the donor. The liver can be stored for 12-18 hours; the pancreas can be stored for 8-12 hours; the intestines can be stored for about 8 hours; and the kidneys can be stored for 24-48 hours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Product\"><\/span>Product<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The TransMedics Organ Care System (OCS) Heart System is designed to preserve donor hearts prior to transplantation. The system includes: A portable housing that heats the donor heart and provides it with oxygen and nutrients.<\/p>\n\n\n\n<p>In addition to the heart, TransMedics currently uses similar technology to launch similar products for the lungs and liver.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"OCS\"><\/span>OCS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics\u2019 OCS Console is the only FDA-cleared portable normothermic organ perfusion system available in three models: OCS Heart, OCS Lung, and OCS Liver.<\/p>\n\n\n\n<p>Rather than simply preserving organs in what is essentially an ice box (which is the current standard), OCS maintains organs in a near physiological state outside the body by perfusing them with nutrient-rich, oxygenated blood\/solution. thereby maintaining organ function.<\/p>\n\n\n\n<p>This innovative approach extends organ viability, allows organs to be transported longer distances and expands the donor organ pool. OCS also enables immediate organ monitoring after perfusion, allowing the viability of more marginal organs to be assessed and then used for transplantation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Product_billing\"><\/span>Product billing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of 2019, the TransMedics Organ Care System costs approximately $40,000 per use.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NOP_plan\"><\/span>NOP plan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics&#8217; NOP (National Organ Care System Program) program is expanding the scope and capabilities of transplant programs across the United States to increase transplant volume to help patients in need.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitive_landscape\"><\/span>Competitive landscape<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_only_FDA-approved_device_for_multiple_organs\"><\/span>The only FDA-approved device for multiple organs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics&#8217; Organ Care System (OCS) is the only FDA-approved system for preserving &#8220;multiple organs.&#8221; Revenues for the heart and lungs are rising, but those organs don&#8217;t have the same growth potential as the liver. In 2024, liver transplantation will account for 70% of TransMedics&#8217; total revenue. TransMedics is also the only solid organ transport device manufacturer with a fleet of jets dedicated to transporting donated organs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significant_Acquisitions\"><\/span>Significant Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In November 2023, TransMedics completed the acquisition of Summit Aviation, adding aviation services to NOP\u2019s offerings and driving an immediate increase of $2.1 million in transplant-related revenue in the third quarter of 2023.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market\"><\/span>Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During TransMedics\u2019 2023 fourth quarter earnings call, founder and CEO Waleed Hassanein revealed that the OCS platform accounts for 17% of liver transplants in the United States, about 16% of heart transplants, and only 4% of lung transplants. <\/p>\n\n\n\n<p>Needham noted that the organ transplant market is worth more than $8 billion and that current penetration is less than 6%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Potential_market\"><\/span>Potential market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to 2022 data from the Global Donation and Transplantation Observatory, the United States accounts for 25% of the global liver transplant volume, 46% of the global heart transplant volume, and 40% of the global lung transplant volume. Assuming these ratios remain relatively stable through 2023, we can use our U.S. forecasts to estimate TransMedics&#8217; global transplant-related revenue opportunity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_monopoly_is_broken\"><\/span>The monopoly is broken<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_past_rivals\"><\/span>The past rivals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics&#8217; main competitors are Abiomed, Intercept Pharmaceuticals and Cubist Pharmaceuticals, among others in US.<\/p>\n\n\n\n<p>Regarding Abiomed, please see my other post for a detailed discussion of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/06\/abiomed-acquired-by-jnj\/\" target=\"_blank\" rel=\"noreferrer noopener\">Abiomed acquired by Johnson &amp; Johnson<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ever_closed_to_monopoly\"><\/span> Ever closed to monopoly<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>TransMedics is one of the leading companies trying to solve this problem. With its Organ Care System (OCS), TransMedics fundamentally changes the way organs are procured, transported and transplanted. TransMedics has a near-monopoly in a largely untapped market and is making strides to fully capture this opportunity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_the_revenue_slowdown\"><\/span>Reasons for the revenue slowdown<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A few years ago, there was a lot of low-hanging fruit in the area of \u200b\u200bsolid organ storage and delivery. Unfortunately for TransMedics&#8217; investors, it&#8217;s not the only company with a next-generation organ storage device that has received FDA approval.<\/p>\n\n\n\n<p>Paragonix makes ice-free refrigeration equipment for the heart, lungs, kidneys, etc. Its equipment is synced with digital services that clients or internal teams of organ transport experts can use to coordinate &#8220;logistics,&#8221; while TransMedics uses its own dedicated aircraft. This is not a preferred approach, but it is an alternative option that could limit TransMedics&#8217; pricing power.<\/p>\n\n\n\n<p>In February 2025, UK-based OrganOx raised $142 million to expand the market for its OrganOx metra device. The OrganOx, like TransMedics\u2019 device, is a normothermic robotic care system approved by the FDA for preserving livers donated after DBD or DCD.<\/p>\n\n\n\n<p>Outside the U.S., where OrganOx has a broader presence, liver accounts for about 1% of TransMedics Group sales. If OrganOx uses its newly raised cash to compete as aggressively in the U.S. as it does overseas, TransMedics could see a significant revenue contraction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating_performance\"><\/span>Operating performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2024_Fourth_Quarter_Results\"><\/span>2024 Fourth Quarter Results<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>2024 Q4 Results are below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GAAP EPS of $0.19.<\/li>\n\n\n\n<li>Revenue of $121.62 million, up 50% year-over-year.<\/li>\n\n\n\n<li>Net profit was US$6.9 million, an annual growth of 43.44%.<\/li>\n<\/ul>\n\n\n\n<p>How does the market react? The next day, TransMedics&#8217; stock price soared 5.82%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_pull_back_from_mid-2024_high\"><\/span>Stock pull back from mid-2024 high<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>During the six months from late April to October 2024, TransMedics&#8217; stock price experienced a sharp rise and then fell back, mainly because the second quarter financial report of 2024 was too impressive. The revenue growth rate in the past few quarters has soared by more than 100% due to the company&#8217;s acquisition of Summit Aviation, which has driven the market crazy.<\/p>\n\n\n\n<p>When the effect of the acquisition of Summit Aviation decreases, the revenue growth rate will fall to 64% in the second quarter of 2024. At the end of October 2024, the company&#8217;s stock price began to fall from its peak.<\/p>\n\n\n\n<p>However, TransMedics&#8217; stock price has risen by 172.02% since the company went public as of March 7, 2025. The current share price is $67.46.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Valuation\"><\/span>Market Valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Despite the company&#8217;s promising prospects, the stock is still a bit expensive at present, with a high price-to-earnings ratio of 67.<\/p>\n\n\n\n<p>But in the long run, TransMedics still looks like a long-term winner. It is worthy of investors&#8217; continued observation, and it is not recommended to buy rashly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Famous_Shareholders\"><\/span>Famous Shareholders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vanguard_Group\"><\/span>Vanguard Group<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On September 30, 2024, Vanguard Group, the world&#8217;s second largest company known for its low-cost mutual funds and ETFs, acquired a total of 1,068,659 shares of TransMedics, which increased Vanguard Group&#8217;s total holdings in the company to 3,595,059 shares, demonstrating significant recognition of TransMedics\u2019 market potential and innovation in organ transplantation technology.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gotham_Asset_Management\"><\/span>Gotham Asset Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Gotham Asset Management, founded by famed value investor Joel Greenblatt, also holds a large stake in TransMedics, a sign that major Wall Street investors are interested in the company. have a strong interest in its growth potential. Especially when the company&#8217;s technology further gains market acceptance and drives revenue growth in the organ transplant industry, they are all optimistic about the company&#8217;s future, and continued investment in TransMedics may generate substantial returns in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TransMedics is a company revolutionizing an industry in desperate need of disruption. Their OCS technology is dramatically expanding the availability of viable donor organs, potentially saving countless lives. OCS adoption has shown increasing promise, and I expect this trend to continue as the technology improves.<\/p>\n\n\n\n<p>It is believed that the real driver of future growth will come from TransMedics&#8217; NOP and logistics services capabilities, which will significantly increase the value the company provides to transplant facilities, thereby increasing OCS adoption and creating additional revenue streams.<\/p>\n\n\n\n<p>Buy the stock at current price levels simply because TransMedics stock looks like a long-term holding thanks to its meaningful market opportunity, near-monopoly position in its niche, and economic moat. But a bear market correction of about 20% for the stock would seem more likely to make investors seriously consider the dip.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Negative_report\"><\/span>Negative report<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scorpion_Capitals_short_report\"><\/span>Scorpion Capital&#8217;s short report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On January 10, 2025, after Scorpion Capital released a short report, TransMedics&#8217; stock price fell sharply, falling by more than 15%. The report accused the company of engaging in unethical practices under the guise of a medical device company, including &#8220;mafia-style&#8221; extortion and an organ trafficking scheme.<\/p>\n\n\n\n<p>The report further alleges that TransMedics engaged in kickbacks, billing fraud, unreported device malfunctions, and widespread off-label abuse of the Organ Care System (OCS).<\/p>\n\n\n\n<p>In response to these allegations, Scorpion Capital announced plans to file a citizen petition with the FDA requesting a stay of premarket approval (PMA) of TransMedics OCS. They also plan to send an open letter to members of Congress investigating abuses in the U.S. organ transplant system.<\/p>\n\n\n\n<p>Influenced by this short-selling report, TransMedics Group&#8217;s stock price plummeted by more than 18% in two days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TransMedics_response\"><\/span>TransMedics response<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On January 13, 2025, TransMedics issued the following statement regarding the Scorpion Capital short report:<\/p>\n\n\n\n<p>We firmly believe that the claims made in the Scorpion Capital report are without merit and are primarily intended to manipulate the market for financial gain. The report fails to accurately reflect TransMedics\u2019 business, technology, diverse culture, and unwavering commitment to providing superior products and services to meet the needs of the global transplant community.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion-2\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TransMedics is a company that is revolutionizing an industry that is in dire need of disruption. Their OCS technology is greatly expanding the availability of viable donor organs, saving countless lives. The adoption of OCS has shown increasing promise, and I expect this trend to continue as the technology improves.<\/p>\n\n\n\n<p>We believe the real driver of future growth will come from TransMedics&#8217; capabilities in NOP and logistics services, which will significantly increase the value the company provides to transplant facilities, thereby increasing OCS adoption and creating additional revenue streams.<\/p>\n\n\n\n<p>TransMedics stock looks like a good buy for the long term. But if you are really happy with the stock&#8217;s decline, it seems more likely that investors will seriously consider buying on the dip.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"278\" height=\"71\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/08\/TMDX.jpg\" alt=\"TransMedics\" class=\"wp-image-28897\"\/><figcaption class=\"wp-element-caption\">credit: TransMedics<\/figcaption><\/figure>\n\n\n\n<p><strong><em>I am the author of the original text, the essence of this story was originally featured on Smart Magazine<\/em><\/strong>, <strong><em>Issue of April 2025<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/11\/06\/hca-healthcare\/\">How does HCA Healthcare make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/16\/akesos-beat-best-drug\/\">Akeso\u2019s lung cancer drug beat world best-selling drug, a biotech DeepSeek watershed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/05\/03\/transmedics-ocs\/\">TransMedics, an expert in organ transplant care systems<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/08\/17\/intuitive-surgical-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Intuitive Surgical, a company that essentially monopolizes surgical robots<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/02\/gene-editi-casgevy\/\">World\u2019s first gene editing therapy Casgevy finally approved<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/17\/how-does-crispr-the-gene-editing-inventor-make-money\/\">How does CRISPR, the gene editing inventor, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/06\/abiomed-acquired-by-jnj\/\" target=\"_blank\" rel=\"noreferrer noopener\">Abiomed acquired by Johnson &amp; Johnson<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/21\/how-johnson-johnson-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How the best AAA credit rating Johnson &amp; Johnson makes money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/04\/intuitive-surgical\/\">How does dominated Intuitive Surgical make money?&#8221;<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/02\/abbott-laboratories\/\">Abbott, the world&#8217;s most important medical device and nutritional food supplier, how does it make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/14\/ge-spinoff\/\" target=\"_blank\" rel=\"noreferrer noopener\">How did three listed companies make money after GE spinoff? What are the prospects?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>TransMedics has a near-monopoly in a largely untapped market and is making strides to fully capture this opportunity.<\/p>\n","protected":false},"author":1,"featured_media":28897,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[733,548],"tags":[1373,138,1310,929],"class_list":["post-28895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-medical-device","category-monopoly","tag-gotham-asset-management","tag-jnj","tag-tmdx","tag-vanguard"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=28895"}],"version-history":[{"count":40,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28895\/revisions"}],"predecessor-version":[{"id":39803,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28895\/revisions\/39803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/28897"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=28895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=28895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=28895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}