AngioDynamics ($ANGO) said it won expanded FDA clearance for one of its key vascular access devices, a development that could help it boost the market reach for a product it bills as a healthcare cost-cutter.
The FDA cleared the Albany, NY, company's AngioVac cannula (drainage tube) for venous drainage during extra corporeal bypass for up to six hours. This clearance also includes the removal of blood clots. AngioDynamics has had its initial clearance in place for AngioVac since October 2012.
Chief commercial officer John Soto said in a statement that the product has already generated interest because it helps improve patient outcomes and also reduces the cost of treatment--two crucial selling points in today's Affordable Care Act environment.
AngioDynamics reported $88.6 million in net sales during its fiscal 2014 second-quarter, up only slightly from $87 million in net sales over the same period last year. The company essentially broke even compared to $2 million in net income generated during its fiscal 2013 second quarter. Sales results came in better than expected, the company said, in part because of healthy AngioVac sales. Recently, AngioVac also won a CE mark.
Those elements, plus expanded FDA clearance will help the company generate new revenue growth when it is clearly needed. AngioDynamics said it is well under way with its "operational excellence program," a push to become leaner, boost supply chain efficiency and make other changes that could help it save $15 million to $18 million over the next three years.
- read the release
- recap the Q2 FY2014 results