AngioDynamics Ships NanoKnife Again - Analyst Blog


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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).

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