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| Diamondback 360 system--Courtesy of FDA.gov |
Following news of Boston Scientific's ($BSX) purchase of Bayer's device unit, investors punished fellow peripheral device maker Cardiovascular Systems because it is now less likely to be bought over by the device giant. Its stock fell more than 5% Thursday to about $26.
Instead of being bought over, Cardiovascular Systems will face tougher competition from the JetStream Atherectomy System for the removal of plaque from peripheral arteries.
"In BSX's hands, it is possible that JetStream becomes a more formidable No. 4 player in the high-growth atherectomy space given BSX's ability to bundle within interventional cardiology and cardiology more broadly," Leerink Swann analyst Danielle Antalffy wrote in a note to investors, according to MassDevice.
Cardiovascular Systems makes the Stealth 360 and Diamondback 360 Peripheral Orbital Atherectomy System as well as the Diamondback 360 Coronary Orbital Atherectomy System for coronary artery disease.
During its most recent earnings call the company stressed its product differentiation. CEO Dave Martin said the company is less focused on market share than it is about expanding the size of the market. The Diamondback for peripheral artery disease reduces the need for amputations and enables access to arteries in the foot and ankle that were previously difficult to treat, Martin said. The company added the Diamondback is the only device approved to treat severe coronary calcium disease.
The Minneapolis/St. Paul Business Journal reports Cardiovascular Systems is building a new, $20 million headquarters in nearby New Brighton, MN. It employs 175 people and plans to grow to 450 employees in the next three years, the article says.
The company reported a loss of $9.7 million on revenues of $34.9 million in its third fiscal quarter of 2014.
- read the MassDevice article
- read the Minneapolis/St. Paul Business Journal article