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AngioDynamics Expands in Asia with NanoKnife Approvals

AngioDynamics Inc. ANGO continues to expand its international footprint through product approvals gained in different countries. The company recently announced the receipt of approval for the NanoKnife system in four Asian countries, including South Korea, Malaysia, Thailand and Vietnam.

The approvals came close on the heels of AngioDynamics' receipt of Certificates to Foreign Governments (CFGs) for NanoKnife from the FDA in its fiscal fourth-quarter 2015. Also, in its recently concluded first-quarter 2016, NanoKnife's disposable sales surged 29% on a year-over-year basis.

NanoKnife has already been approved across 45 countries. In the U.S., the system has received a 510(k) clearance from the FDA for use in the surgical ablation of soft tissue. It is also commercially approved in Canada, the European Union and Australia.

AngioDynamics continues to enjoy healthy demand for its coveted NanoKnife system. Increasing international penetration of the device will contribute to revenues at the company's Oncology division. Management also believes that a possible increase in reimbursement rates for NanoKnife will boost U.S. revenues in fiscal 2016.

Apart from NanoKnife, AngioDynamics boasts an impressive product portfolio that comprises AngioVac, Bioflo and Celerity. New product launches like NAMIC inflation device and BioFlo Midline will drive significant top-line growth in fiscal 2016 and beyond. The company has an innovative product pipeline that includes second-gen Microwave and Celerity Navigation.

AngioDynamics expects to file for FDA approval for Celerity with Navigation in the near term. The company also plans to launch the product by the end of fiscal 2016.

Despite this strong product line-up, AngioDynamics' first-quarter 2016 results failed to impress. Both sales and earnings declined on a year-over-year basis primarily owing to unfavorable foreign exchange and soft capital equipment demand in the international markets. The Morpheus product recall also dealt a heavy blow to revenues.

Meanwhile, management's guidance remains back-end loaded. The Morpheus product recall and volatile foreign exchange are expected to hurt first-half 2016 results (each headwind will likely impact revenues by 1%). The company also expects the second quarter to be relatively sluggish when compared to the year-ago quarter.

Zacks Rank & Key Picks

Currently, AngioDynamics carries a Zacks Rank #4 (Sell).

Better-ranked stocks include Masimo MASI , Mazor Robotics MZOR and Cyberonics CYBX , all sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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