4. Establishment Labs Holdings Inc. (NASDAQ:ESTA)
Number of Hedge Fund Holders: 15
Next on the list of the best aesthetics stocks is Establishment Labs Holdings Inc. (NASDAQ:ESTA), a company specializing in medical technology. It produces and promotes medical equipment intended for both aesthetic and reconstructive plastic surgery purposes. The company’s main focus is on providing silicone gel-filled breast implants, marketed under the brand name Motiva Implants. On August 8, Establishment Labs Holdings Inc. (NASDAQ:ESTA) announced a Q2 GAAP EPS of -$0.65 and a revenue of $48.6 million, outperforming Street estimates by $0.06 and $1.23 million, respectively.
According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Establishment Labs Holdings Inc. (NASDAQ:ESTA), compared to the preceding quarter when 18 funds had invested in the stock. Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management is the leading position holder in the company, with 1.8 million shares worth $126.5 million.
Here is what Baron Funds specifically said about Establishment Labs Holdings Inc. (NASDAQ:ESTA) in its Q2 2022 investor letter:
“Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company that sells silicone gel-filled breast implants, branded as Motiva Implants, in more than 80 countries outside of the U.S. The company’s breast implants are made with a unique, proprietary smooth surface technology which minimizes the immune response and has had low rates of adverse events, particularly capsular contracture (squeezing of the implant by surrounding tissue) and rupture.
The company has been gaining market share in its existing geographies, but it has not yet received regulatory clearance in the U.S., which represents roughly half of the $1.5 billion breast implant market. Establishment has been running a pivotal U.S. trial to support FDA approval in the U.S. and recently announced two-year follow-up results at a medical meeting. The data revealed low complication rates, which should position the company to receive FDA approval over the next 12 to 18 months.
China represents a fast-growing market and Establishment expects to receive regulatory approval there in the coming months. In addition, the company is developing a minimally invasive breast implant called Motiva Mia, which can be implanted in a 15-minute procedure in an outpatient setting without general anesthesia. The company estimates an addressable market for Motiva Mia of 1.9 million new patients equating to a $3 billion to $5 billion incremental revenue opportunity. We think Motiva Mia will expand the company’s market opportunity materially, adding to the company’s long runway for growth.”
