The Board of medical equipment maker Stereotaxis Inc (STXS) has reaffirmed the commercialization strategies for the company’s Odyssey and Epoch product platforms. In a recent meeting, the Board reviewed and approved the company’s plans for launch of the Epoch magnetic surgery platform and expansion of the Odyssey platform into standard laboratories. Moreover, a “Strategy Committee” has been set up to assess various capital raising strategies to finance the company’s growth initiatives over the next one-and-half years.
Stereotaxis, in its second-quarter fiscal 2011 earnings commentary, announced an operating plan for the commercialization of its new Epoch and Odyssey platforms. The plan includes realignment and reduction of operating expenses by roughly 15%-20% aimed at minimizing cash burn. The company stated that it has already executed its plans to curtail operating costs. Stereotaxis is also exploring options to boost cash with minimal or no shareholder dilution. The impact of these efforts is expected to begin in fourth-quarter 2011.
Missouri-based Stereotaxis develops and markets advanced cardiology instrument control system for use in cardiac catheterization labs for the treatment of coronary artery disease and arrhythmias. The company’s competitors include Boston Scientific (BSX) and Edwards Lifesciences (EW).
Stereotaxis offers the Niobe Magnetic Navigation System, which allows physicians to perform complex interventional procedures. Moreover, its Odyssey Enterprise Solution integrates and records all lab data allowing physicians to focus on the patient for optimal procedure efficiency. The company, in April 2011, introduced its new Epoch electrophysiology platform.
Stereotaxis recently reported tepid second quarter results with net losses swelling two-and-half-fold year over year on account of a double-digit decline in sales. Revenues tumbled roughly 23% year over year, hurt by weakness in the Niobe business and delays associated with the installation of the Odyssey systems.
Based on an uncertain business environment, Stereotaxis withdrew its previously-announced financial guidance for fiscal 2011 and momentarily suspended providing any outlook for the year. The company also announced the resignation of its Chief Financial Officer Dan Johnston effective August 15.
