Thursday, April 23, 2009

Kensey Nash Corporation F3Q09 (Qtr End 3/31/09)

Total revenues for the quarter were $20.6 million, or comparable to the prior year and as I mentioned earlier inline with our guidance for the quarter. When we look at our net sales for the quarter, sales of biomaterial products were $12.9 million. This represents an increase of 3% year-over-year. Within this biomaterial segment, we have cardiovascular products, which are primarily Angio-Seal component sales. These sales increased 6% year-over-year and our spine medicine products increased 11% year-over-year...........
Angio-Seal royalties were $5.3 million or flat year-over-year. Again, this is due to the negative impact of foreign exchange. If you exclude the negative impact, the actual estimate of royalties would have increased by approximately 7% year-over-year. Again unit sales were up year-over-year and I think that's important to keep in mind in looking at the performance of the Angio-Seal and the performance of St. Jude with these products in the marketplace and the ongoing strength and of the product as it continues to dominate in this sector...........
From the Q & A

Spencer Nam – Summer Street Research

Thanks for taking my questions. Excuse me, just couple of quick questions. First of all, on the Angio-Seal, I was wondering if you could give us any color on the competitive dynamics right now with the Angio-Seal evolution out there? And how definitions are comparing Angio-Seal versus some of the passive closure devices? Are you seeing any change in the – how physicians are preferring one part of another recognizing that Angio-Seal does have the super majority of the market at this point?

Joseph Kaufmann

I can only give you my view of this world. I certainly can’t speak for St. Jude. And I really don’t have a lot of information on Evolution. As far as the – how that product is doing specifically in the marketplace. But I can tell you in terms of what we see or hear in the marketplace is that, with a product like Angio-Seal and the reason why it continues to do so well and continue to dominate the market is, because quite frankly it’s a very good product. It has great, great clinical data, great labeling, it’s easy to use. The passive devices and always has been our position at Kensey Nash is they don’t work. They are – they become relatively expensive band-aids as opposed to doing the job that closure devices are intended to do. So, that’s why we think we have been able to or St. Jude has been able to command such great market share in a continuing large market share. So, I’m sure there is always going to be other competition that comes into the market and we will, - we could do well for either a short period of time or may somewhere down the road come up with a better idea, but I haven’t seen it yet.

Source: Seeking Alpha

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