- 1Q2012 $4.7 million
- Previous quarter $6.2 million
- Same quarter 2011 $5.3 million
- Revenue down by $1.5 million from previous quarter. Reason: Challenges of European economic condition, hospitals adjusting catheter inventory levels and longer sales cycles as a result of careful hospital spending.
- Net income was negative $11.8 million, up sequentially from negative $9.5 million but reversing positive from $11.7 million year-earlier.
Weaker sales:52wk H: 5.28 L: 1.99
During the first quarter, the Company recognized revenue on four systems (two Sensei systems and one vascular research system) as well as shipment of 574 catheters. In the previous quarter, Hansen recognized revenue on eight systems and sold 714 catheters. However, four of the eight systems were sold in previous quarters. The decrease in catheter sales in the first quarter is primarily due to customers adjusting their inventory levels. Catheter sales fell below the number of procedures performed for the first time in five consecutive quarters.
Revenue compared to the same quarter last year is skewed due to profits from a licensing agreement with Phillips in 2011.
procedures: The number of EP (electrophysiology) procedures performed was 636, up slightly sequentially from 633, but down 5% from year-earlier. A record number were performed by European physicians in the quarter. In the U.S., however, procedures performed continue to be negatively impacted by transition period.
?Procedures performed continue to be negatively impacted as we hire and train new experienced sales and clinical personnel and introduce them to their accounts. Over the long term we believe these changes will provide significant benefit to our commercial capability.? ?CEO Bruce Barclay said in the quarterly report.
The company continues to focus on ?operational excellence? by upgrading its U.S. sales force and making executive changes.
Hansen has hired Joe Guido as VP of Marketing and Business Development with more than 20 years of medical sales experience with companies including Intuitive Surgical, Abbott Vascular and Stryker.
Hansen Medical to Exhibit Recently FDA Cleared Magellan Robotic System at National Meeting of Vascular Surgeons
Marketing will continue to target physicians in the U.S. and Europe known for embracing experimental robotic procedures.
The company has also taken steps in Q1 to reduce spending to offset a majority of the Phillips credits and the additional interest expense, but does not anticipate that revenue will completely make up for losses in this quarter.
The FDA approves Hansen’s Magellan Robotic System for sale in the U.S.
Hansen continues to build excitement around the Magellan system and it?s release in the U.S. market. The system allows vascular surgeons to perform faster, more predictable acute procedures from a considerable distance.
Magellan delivers positive results
Barry Merchant, 67, was the first patient to be operated on for a complex blood vessel defect by a Magellan Robotic System with much success.
?The hospitals purchasing the Magellan System are the same for our Sensei system, and range from large university medical centers, to community hospitals. However, we are able to target a different broader subset of physicians with the Magellan System. Physicians using this robot include interventionalists, cardiologists, radiologists, and endovascular surgeon. It is estimated that over 3,000 hospitals in U.S. to peripheral vascular cases today. Further, approximately 2,200 U.S. hospitals with more than 150 beds performed lower extremity endovascular interventions. It should be noted that a large portion of these intuitions already enjoyed the benefits of an active intuitive surgical robotics program.? ?John Guido, VP of Marketing and Business Development
FDA clearance of Hansen’s robotic system could revive sales, give the company an edge over tough competitors
The commercialization of the Magellan Robotic Systems will start with immediate effect in the U.S. while a complete launch is expected later this year.Hansen?s Sensei and Magellan Robotic Systems are expected to be the primary revenue drivers. The company?s focus is on commercialization strategy for the system. Positive clinical experiences and data will hasten the adoption of the system in the U.S. market and propel demand. Also worth mentioning in this context is the initial interest exhibited by a number of key hospitals in the U.S.Statistics suggest that there is considerable scope for market penetration as Magellan Robotic System can serve anywhere between 33% and 50% of the three million vascular procedures performed globally each year. ?Zacks Investment Research