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8 January 2009
It’s been a roller coaster of a year for AngioDynamics. In the past, I’ve professed my high opinion of the company. I still like ANGO and I think it’s fairly valued, but a less than stellar quarter should give growth-obsessed investors pause. The company expects revenues to shrink by $5 million in 2009.
Access sales, historically a slow-growth business for the company, were $16.1 million in the most recent quarter, an increase of 2% year-over year. Oncology/Surgery sales grew 13% to $10.6 million.
The one bright spot: Peripheral Vascular sales. Revenues totaled $21.8 million in the second quarter, an increase of 33% over Q2 2007. The growth was primarily the result of the laser ablation products acquired from Diomed.
The Diomed deal illustrates AngioDynamics’ stated strategy of acquiring of “tuck-in” products. Given its strong cash position, I hope the company will pursue similar
Blog, news2 |
18 December 2008
AngioDynamics announced the use of its Irreversible Electroporation (IRE) technology on a lymph node metastasis and the first lung lesion case.
The procedures were judged successful from a safety perspective. The hospital will conduct further patient follow-up before determining tumor response. These are the fifth and sixth cases using NanoKnife at The Alfred.
Commenting on the patient response, Dr. Ken Thompson, leader of the Study, said, “We have also treated tumors in the liver and kidney with NanoKnife, with similar experiences – no postoperative pain at all – and the procedures have raised no safety concerns.”
Thomson has been an interventional radiologist since 1974 and describes the absence of post-operative pain as “unique and remarkable”.
Unlike thermal ablation modalities like cryo-ablation, microwave, and radiofrequency ablation, IRE damages the cell membrane causing cell death but sparing surrounding structures like blood vessels and nerves. By lessening collateral damage,
Blog, news1 |
4 December 2008
Changes are afoot at Queensbury NY-based AngionDynamics. The company said yesterday that it would begin the search for a new CEO to replace company co-founder Eamonn Hobbs.
Hobbs (pictured) will continue on as Vice Chairman of the Board of Directors where he will focus on the company’s newly acquired irreversible electroporation (IRE) technology. Hobbs described his strengths and ambitions as “entrepreneurial in nature” and the opportunity in IRE as “enormous and immediate”.
In April, AngioDynamics acquired the NanoKnife System (an irreversible electroporation platform) from Oncobionics. Thus far, the device has been cleared for general soft tissue ablation. AngioDynamics intends to file investigational device exemptions with the FDA to pursue additional and more specific indications.
Although it’s too early to estimate the product’s prospects, under AngioDynamics watch, IRE has blockbuster potential. Synergies with the company’s other oncology products (which use radio frequency energy to destroy
Blog, feature2, news1 |
25 November 2008
AngioDynamics announced the first percutaneous use of NanoKnife, an irreversible electroporation (IRE) device. Although its too early to estimate the product’s prospects, under AngioDynamics watch, IRE has blockbuster potential. Synergies with the company’s other oncology products (which use radio frequency energy to destroy target tissue) abound.
Irreversible electroporation uses electrical fields to create small defects in a cell’s membrane. Damage to the cell membrane causes cell death but spares surrounding structures like blood vessels and nerves. By lessening collateral damage and sparing surrounding structures, the body is better able to remove damaged tissue. AngioDynamics acquired the technology from Oncobionics in April 2008.
“With IRE, what I believe we’re looking at is a whole new treatment modality that can be used on a wider spectrum of patients which potentially reduces risk or impact to their body. I believe the NanoKnife represents a new paradigm in radiologically
Blog, news1 |
6 November 2008
Having acquired onetime rival Diomed for a song, AngioDynamics has launched a new varicose vein therapy brand, VenaCure EVLT. The new brand combines AngioDynamics’ VenaCure with Diomed’s EVLT.
“As the name conveys, our new brand will be everything you liked about VenaCure and EVLT in one package,” said Sean Morris, Senior VP of AngioDynamics’ Peripheral Vascular Division.
In June, Angiodynamics paid $11 million in cash for Diomed’s U.S. and U.K. operations. With the acquisition, AngioDynamics substantially strengthened its position in the worldwide market for the treatment of varicose veins.
Prior to its legal travails, and subsequent bankruptcy, Diomed had an attractive business. In the quarter ended June 30, 2007 (which serves as a good reference point), the company’s EVLT installed base exceeded 1,200 systems. Half of those were “closed” – designed exclusively for Diomed’s single-use disposables. In that quarter, 110,000 procedures were performed using
Blog, feature2, news2 |
10 October 2008
A Texas jury has found that Palomar’s products do not infringe on a Candela patent.
Candela had accused eight Palomar handpieces of infringing on three Candela Patents. Curiously, just days before the start of trial, Candela dropped its accusations against Palomar’s LuxB, LuxY, LuxYs, and LuxG handpieces.
When Candela went to trial, the only accusation related to patent 5,810,801. The company had significantly reduced the amount of damages it was seeking.
Patent 5,810,801 is a method for treating wrinkles in skin using a wave laser or incoherent radiation. The method comprises generating a beam of radiation, directing the beam of radiation below a wrinkle in the skin, and thermally injuring collagen in the targeted region. The method may also include cooling the skin above the targeted region prior to thermally injuring collagen.
The jury found Palomar’s products to be non-infringing and the patent claims at issue
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3 October 2008
The AP has a tendency to turn any earnings misstep into a headline. Such was the case with yesterday’s news that “AngioDynamics 1Q profit slips on lower laser sales”. The Business Review said, “AngioDynamics reports 7.1% drop in 1Q net income.”
While true, by most measures, AngioDynamics first quarter was a resounding success.
Net sales were $44.3 million, an 18% increase year-over-year. Gross margin rose to 61.9% compared with 60.0% in the same period last year. Operating income increased to $3.8 million compared with $3.5 million a year ago.
The fall in net income ($2.2 million in the first quarter, compared with $2.4 million in Q2 2007) can be attributed to the inclusion of certain Diomed assets beginning June 17, 2008.
Diomed’s customer base was reluctant to buy new lasers – understandably – until the long-term viability of the company was guaranteed. Sales dried up significantly
Blog, feature2, news1 |
25 July 2008
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
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14 July 2008
Back in 2004, shares of Rita Medical surged as much as 67 percent after it reported positive results for its radio-frequency ablation (RFA) technology in a trial of lung cancer patients. The RFA system, which uses radio-frequency energy to heat tissue to a high enough temperature to kill cells, achieved a 91 percent survival rate in a trial of patients with primary nonsmall-cell lung cancer after both 12 months and 18 months.
AngioDynamics, having acquired Rita in early 2007, continues to pursue expanded indications for Rita’s RFA tools. RFA is currently an option for inoperable tumors.
The Rapture study was conducted to identify the feasibility, efficacy and safety of RF ablation of malignant lung tumors. Lung cancer is the leading cause of cancer death.
All patients were considered unsuitable for surgery, radiotherapy or chemotherapy. The results (published in July’s The Lancet Oncology) show a
Blog, news2 |
11 July 2008
AngioDynamics has initiated a voluntary recall of its Centros central venous catheter for dialysis. The company became aware that the catheter cuff (the component used to anchor the catheter beneath the skin) was inadequately attached to the catheter in some instances, allowing for movement of the catheter within the insertion site, leakage around the site, or the retention of the cuff in the tissue when the catheter was removed.
AngioDynamics belives an outside manufacturer’s production process is to blame.
Since January, the company has shipped approximately 1,500 potentially defective catheters; less than 1% of these have been found problematic. No adverse patient outcomes have been reported.
Pending an FDA review, Centros shipments are expected to resume sometime after December 2008. AngioDynamics expects the total costs associated with the recall to be minimal.
Blog, news2 |
