Artivion lowers forecast on weak AMDS sales, hurting Alger fund
Artivion cut its full-year outlook due to sluggish sales of its new AMDS product, dragging down returns for the Fred Alger Weatherbie Specialized Growth Fund in a quarter where broader markets surged.
Artivion trimmed its full-year guidance after reporting in-line first-quarter results, hurt by weaker-than-anticipated starter set sales for its AMDS product line. The medical device maker's stock consequently detracted from the performance of the Fred Alger Weatherbie Specialized Growth Fund during the second quarter.
Artivion generated total revenue of $116.3 million in the first quarter, representing a 12% increase on a non-GAAP constant currency basis. Despite this underlying top-line growth, the company was forced to lower its annual projections because its key new product cycle failed to gain immediate traction in the market.
The company manufactures, processes, and distributes medical devices and implantable human tissues used in cardiac and vascular surgical procedures. "During the quarter, shares detracted from performance after the company reported in-line first-quarter results but modestly lowered its full-year outlook, primarily due to slower-than-expected starter set sales for AMDS, its key new product cycle," the fund's investor letter stated.
This specific product setback for Artivion stood in stark contrast to a broadly strong quarter for U.S. equities. The S&P 500 Index jumped 15.2% in the second quarter of 2026, marking its best quarterly performance since 2020. A ceasefire between the United States and Iran, combined with accelerating artificial intelligence investments, successfully restored market optimism.
Those macroeconomic and technological tailwinds lifted the Information Technology and Industrials sectors, while falling oil and gas prices caused Energy and Utilities to lag. The Federal Reserve maintained steady interest rates in June, though the central bank struck a notably hawkish tone during its meeting.
The Alger Weatherbie Specialized Growth Fund's Class A shares capitalized on this environment, outperforming the Russell 2500 Growth Index in the period. While positions in Industrials and Information Technology drove the fund's relative outperformance, its Financials and Consumer Discretionary holdings weighed on overall returns.
For Artivion, the lowered guidance highlights the execution risks associated with new product rollouts in the medical device sector. The company's shares closed at $25.37 on July 20, giving it a market capitalization of $1.23 billion. The stock has lost 16.55% over the past 52 weeks, though it posted a 22.68% return over the most recent month.
Institutional investors appear to be maintaining a watchful eye on the stock. Hedge fund interest in the cardiovascular specialist has ticked up marginally, with 28 funds holding shares at the end of the first quarter, up from 25 in the prior quarter.
