Reporting on Q2 results Vascular Solutions, CEO Howard Root today announced "Our highest sales product category in the second quarter was our hemostat products, with $6 million in net revenue in the second quarter, a decrease of 11% from the second quarter of 2007, but an increase of 2% over the first quarter of 2008.
In the second quarter of 2007, our partner King Pharmaceuticals placed a $725,000 stocking order for their initial launch of the ThrombiGel and ThrombiPad products, which is the primary reason for the reduction in revenue year-over-year.
In the second quarter of 2008, King purchased $246,000 of ThrombiGel and ThrombiPad, as they continue to ramp their sales into the surgical and trauma markets, consistent with our long-term plans.
To assist in growing D-Stat Dry sales, in the second quarter we initiated new programs with our direct sales force to maintain our focus on the D-Stat Dry, and to expand into new accounts to address the competitive challenges, with good results to date."
In the second quarter of 2007, our partner King Pharmaceuticals placed a $725,000 stocking order for their initial launch of the ThrombiGel and ThrombiPad products, which is the primary reason for the reduction in revenue year-over-year.
In the second quarter of 2008, King purchased $246,000 of ThrombiGel and ThrombiPad, as they continue to ramp their sales into the surgical and trauma markets, consistent with our long-term plans.
To assist in growing D-Stat Dry sales, in the second quarter we initiated new programs with our direct sales force to maintain our focus on the D-Stat Dry, and to expand into new accounts to address the competitive challenges, with good results to date."
Discussing lower International results Howard repeatedly pointed to "lower percentage sales growth in international markets, as a result of the transition from hospital pricing to distributor pricing in Germany in the second quarter. " and the finalising of a series of litigations including "a $4.5 million jury verdict in our trial against Marine Polymer Technologies. Following the verdict, the court has now dismissed all of Marine Polymer's post-trial objections, and has entered judgment, including interest, at $5.1 million. The court also issued a permanent injunction against Marine Polymer's representatives for making slanderous statements about our D-Stat Dry. "James Hennen CFO discussing Thrombin VSI said "We currently have remaining approximately $400,000 inventory of Thrombin-VSI in vials, and approximately $810,000 in bulk Thrombin. We expect to consume the supply of Thrombin-VSI over the next several years in hemostatic products sold in European markets."
During the Q&A Howard pointed to "aggressive sampling" by competitors in Q4 & Q1 and explained labs tend to use the free product first until they "see that it doesn't work, and then come back to something else."
He further claimed "we are the clear number one patch in the US market, which is the vast majority of that market. When you are number one, it's hard to grow more."
Source: seekingalpha
