Archives for July 2008
[Video] Thermage Buys Reliant for $95 Million
Some older news, in video form, care of our team at OneMedPlace TV.
Thermage announced it would acquire Reliant Technologies earlier this month. The stock and cash transaction was valued at ≈ $95 million and combines respective leaders in skin tightening and skin resurfacing, two fast-growing segments of the aesthetics industry.
Thermage and Reliant generated nearly $137 million in revenue on a combined basis for the 12 months ended March 31, 2008. The transaction is expected to create cross selling opportunities in domestic and international markets.
[Video Profile] Interview with Dr. Anand Lalaji, President & CEO of The Radiology Group
The Radiology Group has developed a virtual, full-service radiology department with a complete range of specialty interpretations. The company aims to match the appropriate physician with the appropriate exam in an effort to raise the standards of health care imaging while lowering costs.
Services include the complete management of radiology department (dictation, reports and billing) and the placement of an on-site radiologist in combination with subspecialty remote needs. Physician clients can expect 24/7 remote coverage with final reports by board-certified subspecialty radiologists.
NeuroMetrix Cost Cutting and Product Introductions Not Enough to Appease Investors
NeuroMetrix continues to get hammered by investors who have left the company for dead. In May, NeuroMetrix laid off 15% of its work force. The direct sales team was cut from 54 to 34 individuals. Steps were taken to reduce operating expenses by nearly $5.0 million annually in the face of declining revenues.
After a late April surge in share price following the company’s FDA 510(k) clearance for Advance (a platform for performing nerve conduction studies and needle electromyography procedures), NeuroMetrix began a slow decline.
This week, NeuroMetrix completed the CE technical file for Advance; the company intends to begin marketing the System to neurologists, clinical neurophysiologists, hand surgeons, and other specialists in the European Union.
Advance will be introduced into the United Kingdom in the third quarter and “more broadly by the end of the year through additional European distribution partners,” says Shai Gozani,
Cynosure Q2: Continued Growth and Profitability
Quarterly revenues at Cynosure, a developer of laser-based aesthetic systems, grew 30% year-over-year, from $30.1 million in Q2 2007 to $39.2 million in the most recent quarter.
The results were in line with the Street’s expectations. Analysts predicted revenues of $38.48 million, according to Reuters estimates.
Gross profit margin increased an impressive 3.8 points year-over-year, to 67.1% of total revenue. Q2 net income increased approximately 72% to $4.7 million, compared with net income of $2.7 million in the second quarter of 2007. This marks the seventh consecutive quarter of profitability.
Last week, I discussed my anticipation of first quarter Smarlipo sales reports; the company began selling the system in the U.S. in late April. Cynosure reported significant demand for Smartlipo workstations as well as the Smartlipo MPX, a higher-powered, dual-wavelength system for laser lipolysis.
Laser product revenue increased 32% in the second quarter of
Cepheid: Q2 Revenues Up 55 Percent, Loss Widens
On Thursday, Cepheid reported $42.1 million in quarterly revenues, a 55% jump from the $27.2 million reported in the same period last year.
Growth has been driven by hospitals intent on countering the growing scourge of healthcare associated infections (HAI).
Sales of Cepheid’s Xpert MRSA test (FDA approved in April 2007) increased 35% from the first quarter, reaching approximately $11 million – a figure I find amazing, considering my onetime dismissal of MRSA as a potentially short-lived celebrity superbug. In May Cepheid signed a group purchasing contract with Novation, making its GeneXpert System and Xpert MRSA tests widely available in the U.S. at lower, pre-negotiated prices.
Overall, in the first half of 2008, Cepheid’s clinical business saw year-over-year growth of 186 percent, with the GeneXpert System leading that charge.
In 2007, the company’s line of clinical molecular diagnostics contributed over 50% of revenues, up from 24%
AngioDynamics Reports Better Than Expected Quarterly Profit
Regular readers will know I’m bullish on AngioDynamics. Yesterday, the Queensbury NY-based company reported better than expected quarterly profit, buoyed by strong sales in its interventional product line.
The news sent shares soaring 15% to $16-plus. AngioDynamics’ stock had traded as low as $10 in March.
Net sales in the fiscal fourth quarter were $46.8 million (analysts were expecting revenues of $45.8 million, according to Reuters estimates), a 14% increase over the $40.9 million reported in the fourth quarter a year ago. Gross margin rose from 58.9% to 62.7% in the same period. Net income was $519,000.
The patent litigation settlement with VNUS Medical, announced in June, reduced fourth quarter operating and net income by $6.8 million and $4.2 million respectively. Excluding this charge, operating income was $7.1 million and net income was $4.7 million.
Fiscal Year 2008
For fiscal year 2008, net sales were $166.5
[Video] New Developments at Chembio Diagnostics
Chembio Diagnostics develops, manufactures and markets rapid, point-of-care tests for the detection of HIV 1/ 2, Chagas and Sickle Cell disease as well as other human and veterinary infectious diseases, including tuberculosis (TB). Many of the company’s current products are based upon single path lateral flow technology platforms using proprietary and/or in- licensed technology. Chembio’s patented Dual Path Platform (DPP) is being employed to develop several new point-of-care products in collaboration with other companies.
Tattoo Regret Could be a Boon for Device Manufacturers
I’ll never get a tattoo. Call me conservative, but the thought of having an ink-based design etched permanently into my skin is more than the old man in me can tolerate.
My geriatric attitude is just that. Among 25-29 year-olds, 36 percent of individuals have one or more tattoos, says a Harris Interactive poll. 28 percent of 30-to-39-year-olds are inked.
Conservative or not, my foresight stands a good chance of being rewarded. According to the American Society of Dermatological surgery, over 50% of everyone with a tattoo wants it removed. That’s a lot of people, and could generate significant revenues at companies specializing in tattoo removal.
Lasers are used to remove pigment from under the skin; laser energy passes through the skin and is absorbed by tattoo ink, causing targeted ink particles to breakdown mechanically. Fragmented particles are removed from the skin by
NxStage Releases New Patient Data; Remains Committed to Top Line Growth
NxStage Medical, a Lawrence, MA company that makes dialysis systems, has released new end-stage renal-disease (ESRD) patient data. The information was derived from a registry of NxStage patients who undergo hemodialysis at home using the company’s System One.
Compared to the conventional regimen of thrice-a-week therapy at a dialysis center, survival and transplant rates were significantly higher among the NxStage patient population. NxStage patients experienced 50 percent-plus reduction in expected mortality as compared to the overall U.S. hemodialysis patient population.
Survival is the “gold standard” of clinical outcomes. Multiple observational, retrospective studies have been published demonstrating 45% to 61% reductions in mortality with home and/or daily dialysis (a randomized, controlled trial of survival of the daily hemodialysis population is unlikely to occur, given study size and enrollment limitations).
Geographic data shows NxStage is doing a good job breaking down barriers to initiating System
Cynosure’s Smartlipo Gets CE Mark; U.S. Sales to Impact Second Quarter Results
For the morbidly obese (BMI > 40), liposuction is not really an option. But for a much broader set of women – those with fat deposits in ‘problem areas’ that respond poorly to diet and exercise – liposuction is a perfect fit.
And if you’re going the lipo route, one of the best options out there is Smartlipo MPX by Cynosure. Cynosure, a developer of a broad array of laser-based aesthetic systems, received a CE Mark for Smartlipo this week.
Smartlipo simultaneously liquefies fat and tightens skin through coagulation. The minimally invasive procedure is performed under local anesthesia; incisions are so small that they don’t require suturing.
Cynosure expects to launch Smartlipo MPX through its subsidiaries in the EU beginning this quarter. The company began selling the system in the U.S. in late April – to rave reviews and prominent media coverage.
A European
