AngioDynamics ($ANGO), the maker of devices to treat vascular disease and oncology, saw its shares drop more than 8% in response to sluggish third-quarter sales. The company also trimmed its earnings outlook for the year.
Shares of AngioDynamics were down 8.22% at $16.75 a share in midday trading today, down from a 52-week high of $19.80 reached earlier this year.
In its Q3 report released yesterday, the upstate NY-based company said net sales for the period slipped 2% to $86.6 million compared to last year's numbers. Both its peripheral vascular and vascular access divisions said sales were down. The lower numbers were attributed to the company's slog with its Morpheus PICC catheter, which it said it has decided to discontinue.
"Facing an extremely difficult operating environment, coupled with a decision to withdraw from the market our Morpheus PICC product line, we delivered at the low end of our expectations," Joseph DeVivo, the company's president and CEO, said in a statement.
The results prompted AngioDynamics to lower its Q4 earnings projections from 19 cents a share to a range of 13-16 cents, and revenues were projected to come in between $90 million to $94 million, down from the $96.9 million forecast earlier.
In a separate announcement, the company said it's entering into a marketing agreement with EmboMedics, a Minneapolis-based startup, to develop injectable microspheres (pending regulatory approvals) to be used in interventional radiology. The microspheres are biodegradable hollow beads that can deliver drugs to a localized tumor site while blocking off blood flow to the area at the same time, thus attacking a tumor on two fronts.
The agreement would place AngioDynamics into what it estimates to be a $150 million global market.
- check out the earnings release (PDF)
- see the EmboMedics release (PDF)