Recently, Endologix (ELGX), a developer of minimally invasive treatments for aortic disorders, received CE Mark approval for its expanded offering of Powerlink stent graft products and PowerFit aortic extensions. While the company is planning for a limited launch of the products during the fourth quarter of 2010, full product launch is expected in 2011. Following the approval of the expanded Powerlink products, the targeted patient population is expected to rise by 5%-10%.
Endologix has already received US approval for these products, which are currently in a limited market release. Full product launch is expected in the fourth quarter of 2010. Banking on positive feedback from the physicians during limited launch in the US, the company is expecting a similar response in the European market.
The Powerlink system is the company’s flagship product, which is an endovascular stent graft for the treatment of abdominal aortic aneurysms (AAA). AAA refers to the weakening of the wall of the largest artery in the body, aorta, leading to a balloon-like enlargement. If left untreated, the enlargement continues to increase and can lead to breaking of the artery. In these cases, the overall patient mortality rate is quite high at about 75%, making it a leading cause of death in the US.
Endologix has been looking at developing its product portfolio. Earlier this month, the company entered into a development agreement with Evasc Medical Systems for its balloon expandable stent technology. Thereafter, the company plans to cover the stent with its proprietary ePTFE graft material so that it can be used along with its fenestrated stent graft device, currently in pre-clinical development phase.
Endologix reported $15.7 million in revenues during the second quarter of 2010, up 19% from the year-ago quarter. While revenues from the domestic market increased 12% to $12.8 million, international revenue increased 65% to $2.9 million. We expect revenues to increase based on a strong product portfolio and current pipeline.
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