On April 23, 2012,
AngioDynamics Inc.
(
ANGO
)
, a therapeutic and diagnostic devices maker, resumed the shipment
of its Nanoknife product line in the U.S. In late January 2012, the
company had voluntarily recalled the ablation zone estimator
("AZE") software used for its tumor-zapping NanoKnife systems.
The FDA had said that the AZE feature should be subject to a
510(k) pre-market notification submission and approval. In
the last quarter, the company had decided to remove this feature
and asked its clients to temporarily stop using it for clinical
determination of the ablation zone.
Subsequently, in this quarter, the AZE feature has been removed
from the updated software and the shipment resumed in the U.S.
AngioDynamics reported third-quarter fiscal 2012 (ended February
29) adjusted (excluding one-time expenses, acquisition and
restructuring charges) earnings of 6 cents per share, missing the
Zacks Consensus Estimate by a penny. Revenues dropped 5.5% year
over year to $51.6 million, slightly ahead of the Zacks Consensus
Estimate. Revenues from Oncology/Surgery segment dropped 16.3% year
over year to $13.7 million. This includes NanoKnife product sales
worth $2 million, up 5.3% over the prior-year quarter.
NanoKnife remains the life blood for AngioDynamics and it is
looking to expand the label to broaden its commercial opportunity.
The company is ramping up R&D investments to expand its product
portfolio and support the ongoing clinical studies of NanoKnife and
vascular product development programs.
AngioDynamics has market leadership positions in several of its
operating segments including angiographic products and thrombolytic
catheters and products. Its product lines face strong challenges
from the competitive offerings of its larger rivals such as
Boston Scientific
(
BSX
) and
C. R. Bard
(
BCR
).
However, AngioDynamics is exposed to pricing headwinds, stemming
from lower selling prices of some access and peripheral vascular
products. We currently have a Neutral rating on the company,
supported by a short-term Zacks #3 Rank (Hold).
ANGIODYNAMICS (
ANGO
): Free Stock Analysis Report
BARD C R INC (
BCR
): Free Stock Analysis Report
BOSTON SCIENTIF (
BSX
): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research