MMSI Stock Falls Despite CE Mark Win for Embosphere in Knee OA Care

Merit Medical Systems MMSI has secured a major regulatory milestone with the CE Mark approval of its Embosphere Microspheres for genicular artery embolisation (GAE) to treat knee osteoarthritis (OA). This expanded indication marks a significant step forward for patients suffering from one of the most common and debilitating joint diseases, offering a minimally invasive alternative that can reduce pain, improve mobility, and potentially delay the need for surgery.

For Merit Medical, the CE Mark serves as a strong validation of its Embosphere technology, which has already demonstrated consistent, durable clinical outcomes across multiple therapeutic areas. The milestone not only broadens the use of a long-trusted embolotherapy solution but also reinforces the company’s leadership in minimally invasive, image-guided therapies.

Likely Trend of MMSI Stock Following the News

Following the announcement, the company's shares plunged 5.2% at Friday’s market closing. Shares of the company have lost 11.6% in the year-to-date period compared with the industry’s 1.8% decline. The S&P 500 has gained 12.8% in the same time frame.

However, the CE Mark approval for Embosphere in treating knee osteoarthritis expands Merit Medical’s addressable market into a large and growing patient population, creating a durable revenue opportunity. By leveraging its proven technology in a new indication, MMSI can drive deeper penetration in Europe, strengthen recurring demand for its embolotherapy portfolio, and enhance its competitive edge in minimally invasive pain management—ultimately supporting sustained long-term growth and shareholder value.

MMSI currently has a market capitalization of $5.07 billion.

More on MMSI’s Embosphere Microspheres

Knee OA is one of the most widespread and burdensome conditions globally, affecting nearly 600 million people and growing with aging populations, rising obesity, and higher injury rates. For many, OA is not just about stiffness and pain; it can severely limit mobility and quality of life, leaving patients with few treatment options beyond temporary relief from medications or invasive surgical procedures. This large, underserved patient pool underscores the need for safe, effective and minimally invasive alternatives.

That is where Merit Medical’s Embosphere Microspheres come into play. With the newly granted CE Mark, these microspheres are now approved in Europe for GAE, a procedure that selectively reduces blood flow to inflamed tissue in the knee joint. Clinical data show that more than 75% of patients treated with Embosphere for GAE achieved meaningful, sustained reductions in pain through 24 months, along with improved function and reduced reliance on pain medications. Compared to corticosteroid injections, Embosphere delivered more consistent and longer-lasting benefits, making it a compelling option for patients seeking alternatives to surgery.

Importantly, Embosphere is not a new or untested technology; it’s a proven embolotherapy solution with more than 25 years of clinical use, supported by over 130 pivotal studies. Its proprietary tris-acrylic co-polymer design and precisely calibrated spherical shape enable reliable and durable vessel occlusion, which is crucial in procedures involving small arteries, such as those in the knee. Already trusted for conditions such as uterine fibroids, arteriovenous malformations, and benign prostatic hyperplasia, this expanded indication into OA strengthens its reputation as a versatile, dependable solution, adding long-term momentum to MMSI’s growth story.

Favorable Industry Prospects for MMSI

Per a report by Grand View Research, the global osteoarthritis therapeutics market size was estimated at $9.13 billion in 2024 and is projected to reach $13.57 billion by 2030, registering a CAGR of 6.89% from 2025 to 2030. 

The market is poised for significant growth, driven by the rising prevalence of osteoarthritis, particularly among the aging population, and substantial R&D investments in new treatments.

MMSI’s Zacks Rank & Key Picks

Currently, MMSI carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. WST, Medpace Holdings, Inc. MEDP and Envista NVST.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Medpace Holdings, sporting a Zacks Rank of 1, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

Envista reported second-quarter 2025 adjusted EPS of 26 cents, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $682 million surpassed the Zacks Consensus Estimate by 6.3%. It currently carries a Zacks Rank #2 (Buy).

Envista has a long-term estimated growth rate of 16.8%. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.50%.

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