AngioDynamics' Strategic Initiatives and Product Growth Amid Revenue Decline
2024-01-09
AngioDynamics, a leading medical technology company, reported its second-quarter earnings for 2024 during a conference call. The call was attended by Jim Clemmer, the President and CEO, and Steve Trowbridge, the EVP and CFO. The operator reminded listeners not to rely on any forward-looking statements and encouraged them to review the company's filings with the SEC.
During the call, AngioDynamics discussed non-GAAP and pro forma financial measures, which are used by management to set goals and evaluate performance. The company's slide package with detailed financial results can be found on their website's Investors section.
Jim Clemmer, the President and CEO, outlined the company's future plans, which include focusing on growth in both their Med Tech and Med Device businesses while driving margin expansion. AngioDynamics aims to achieve full-year profitability by FY 2027.
In terms of performance, AngioDynamics experienced a 7.44% decrease in revenue compared to the previous year, with Q2 2024 revenue reaching $79.07 million. However, there was a positive year-over-year growth of approximately 3%, driven by a 4% growth in the Med Tech segment. The thrombectomy business faced challenges, with a decline of 4.7% year-over-year.
To address the decline in the thrombectomy business, AngioDynamics is working towards obtaining final FDA approval for the use of AngioVac to remove right heart vegetation. Additionally, they plan to introduce two new second-generation design enhancements for AlphaVac later in 2024.
The company recently completed enrollment in the APEX-AV study, which evaluates the performance of the AlphaVac F18 system in reducing thrombus burden and improving right ventricular function.
AngioDynamics reported positive sales growth in certain product lines. NanoKnife sales increased by 16.7% year-to-date, while the Auryon platform saw a 12.9% year-over-year growth in the second quarter. Since its launch in September 2020, the Auryon product has generated $100 million in cumulative revenue.
The Med Device segment experienced growth driven by angiographic catheter products and ports, with growth rates of 8% and 5.5% respectively. The international business also saw a 12.6% year-over-year growth in the second quarter of FY 2024.
AngioDynamics is actively engaged in strategic initiatives, including evaluating its Med Device portfolio and discussing portfolio optimization. The company is also focused on reducing structural costs within its manufacturing footprint and transitioning manufacturing operations to a fully outsourced model. This transition is expected to result in approximately $15 million in annualized savings by FY 2027.
In conclusion, AngioDynamics remains committed to driving growth, improving profitability, and optimizing its product portfolio to better serve its customers and investors. Despite the challenges faced in the thrombectomy business, the company is actively working on solutions and investing in innovation to maintain its position as a leader in the medical technology industry.