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Earnings call: AngioDynamics Reports Q1 FY 2024 Revenue Growth, Progress in NanoKnife and Auryon Platforms

EditorPollock Mondal
Published 2023-10-05, 08:26 a/m
© Reuters.
ANGO
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AngioDynamics (NASDAQ:ANGO) reported a 6% year-over-year (YoY) increase in revenue for the first quarter of fiscal year 2024, reaching $78 million. The company highlighted significant growth in its NanoKnife business and Auryon platform, and progress in its PRESERVE study and AngioVac product.

Key takeaways from the call include:

  • AngioDynamics' NanoKnife business grew approximately 36% during the quarter, with strong use both in the US and internationally.
  • The company enrolled and treated its final patient in the PRESERVE study, aiming to prove NanoKnife's safety and effectiveness in treating intermediate-risk prostate cancer.
  • AngioDynamics received a breakthrough designation for its AngioVac product for the removal of right heart vegetation.
  • The Auryon platform reported a 26% YoY growth, contributing $11.1 million in revenue.
  • The Med Device segment also showed revenue growth, primarily driven by Ports and the Solero Microwave Ablation System.
  • AngioDynamics anticipates FY '24 revenue in the range of $328 million to $333 million, with gross margins of 50% to 52%.

The company's long-term strategy has seen progress, particularly with its NanoKnife business, which reported a significant growth of 36% during the quarter. The final patient in the PRESERVE study, which aims to establish the NanoKnife as a safe and effective treatment for intermediate-risk prostate cancer, has been enrolled and treated. AngioDynamics plans to submit the data to the FDA in Q3 2024 to support an expanded indication for NanoKnife.

In addition, AngioDynamics received a breakthrough designation for its AngioVac product for the removal of right heart vegetation. The company expects to finalize the study design for AngioVac in the second fiscal quarter. Despite a 5.8% YoY decline in mechanical thrombectomy revenue, including AngioVac and AlphaVac sales, AngioVac revenue showed signs of stabilization and rebound, with a sequential increase from Q4 FY '23.

The Auryon platform, part of the company's Med Tech platforms which accounted for 33% of total revenue, reported a 26% YoY growth, contributing $11.1 million in revenue. The company announced upgrades to the Auryon system and expects it to be a major player in small vessel DVT by 2025.

The Med Device segment also showed revenue growth, primarily driven by Ports and the Solero Microwave Ablation System. AngioDynamics expects Med Tech revenue growth of 20% to 25% and Med Device revenue growth of 1% to 3% in FY '24.

AngioDynamics is currently focused on utilizing its cash but may consider a stock buyback in the future. The company emphasized the importance of maintaining a stable balance sheet. Jim Clemmer, a representative from the company, expressed gratitude to employees and highlighted the company's transformation towards being highly differentiated by science and technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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