INFU Rallies on Lymphedema & Buyback News

Posted on July 1, 2021 by Aaron Warwick

Shares of InfuSystem (INFU), a health care service provider facilitating outpatient care for durable medical equipment manufacturers and health care providers, have rallied as much as 30% off Monday’s close, following two key announcements made by the company.

First, on Tuesday, June 29, the company announced signing an agreement with Bio Compression Systems, Inc. to enter the multi-billion dollar lymphedema market. According to INFU’s press release, over the next several years INFU is targeting approximately 20% of that market, meaning the company could earn as much as $200M annually from this partnership. That amount of revenue is roughly equivalent to three times the size of their current integrated therapy services business.

On the heels of that announcement, on Wednesday, June 30, the company issued a press release noting the Board of Directors’ authorization for a $20M share buyback program. That program is in effect through June 30, 2024.

DISCLOSURE: I am long INFU and may buy or sell shares at any time.

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