Is Abiomed Stock Halal?
Table of Contents
How much of Abiomed’s revenue comes from haram?
Abiomed offers medical devices used to assist or replace the pumping function of a failing heart and provide a continuum of care to heart failure patients.
Abiomed earns its revenue from the following segments:
- Impella Product Revenue:
Includes sales of medical devices that provide circulatory support and oxygenation
- Service and Other Revenue:
Includes revenue generated from service maintenance contracts and preventative maintenance calls
The contributions from each of Abiomed’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Abiomed’s revenue comes from anything inherently haram.
Does Abiomed rely on interest to operate?
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What is Abiomed’s Environmental, Social, and Governance (ESG) impact?
Environment
In FY21, Abiomed reduced its energy usage by 500 million kilowatt-hours, conserved more than 48,000 gallons of oil, and conserved more than 878 million gallons of water by converting hazardous waste into energy and increasing production efficiency
Social
Abiomed has a Glassdoor rating of 3.6 out of 5.0 from over 200 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
In 2018, Abiomed agreed to pay $3.1 million to settle a U.S. probe into allegations that it sought to get doctors to use its line of heart pumps by buying them lavish meals at some of the most expensive restaurants in the United States.
Given the incident was settled over two years ago, and Abiomed hasn’t repeated this offense since, Practical Islamic Finance is willing to give the company the benefit of the doubt while recognizing that continued monitoring is required.
Practical Islamic Finance concludes:
Abiomed has a net positive ESG impact.
Comfort Rating
From Abiomed’s business, financial, and ESG reviews, Practical Islamic Finance rates Abiomed stock as: