AMMD Expands GreenLight Reach – Analyst Blog

Leading pelvic-health devices maker American Medical Systems (AMMD) has expanded the overseas reach of its revolutionary GreenLight laser therapy system. The Minnesota-based company recently announced that eight of its GreenLight HPS laser systems were purchased in Australia for installation in public hospitals in Victoria and Queensland for treating benign prostatic hyperplasia/BPH (enlarged prostate).  

 

This follows the successful installation of the GreenLight system in a public hospital in Victoria in 2008, which was made possible through joint funding from the Australian government, the Victorian Department of Health and Queensland Health.

 

The GreenLight HPS lasers will be installed by the Victorian Department of Health at Casey Hospital and Monash Medical Centre in Moorabbin, Victoria. Queensland Health will set up the system at Queen Elizabeth II Jubilee Hospital, Nambour Hospital and Townsville Hospital. Moreover, the Australian government has placed the GreenLight HPS system in three hospitals in Melbourne.

 

BPH, a non-cancerous enlargement of the prostate gland, afflicts as many as 14 million people in the U.S. and is prevalent in older men. The symptoms of BPH are evident in half of all men over 50 years of age. Surgery (such as transurethral resection of the prostate (TURP) and laser procedure) and drug therapy are mostly used as treatment options for this condition.

 

GreenLight HPS leverages an advanced laser technology to offer a safe and effective treatment for BPH. The system has been proven to be as effective as the legacy TURP procedures with lesser complications and shorter hospital stay. Nearly 500,000 patients globally have been treated with the GreenLight HPS system.  

 

American Medical is a global leader in medical devices and procedures for treating health problems of both men and women. The company expanded its BPH therapy range in May 2010 with the launch of the GreenLight XPS laser therapy system, which is built upon the success of its GreenLight HPS and PV laser systems.

 

The company derives nearly half of its revenues from its Men’s Health business, which comprises erectile restoration, male continence and prostate treatments. Revenues from Men’s Health continue to be boosted by higher demand for the erectile restoration and male continence product lines.

 

American Medical has a dominant position in both male and female incontinence markets. The company has a strong pipeline and remains focused on rolling out new products to drive growth. However, its European markets are yet to recover from the macroeconomic headwinds. Currently, we are Neutral on the stock.