THE NUMBERS:
Three-year growth: 113.9%
12-month sales through June: $45.1 million
12-month loss through June: $6.1 million
Recent market value: $270 million
Employees: 200, 140 in OC
Company: medical device maker
For a company that makes devices to stop ballooning blood vessels, Endologix Inc.’s revenue has seen a fair amount of inflation during the past three years.
The Irvine medical device maker repeats as the No. 6 company on this year’s Business Journal list of fastest-growing public companies here.
Endologix posted 114% revenue growth for the three years through June 30. It went from $21.1 million in revenue for the 12 months through June 2007 to $45.1 million for the same period through this June.
Endologix makes devices to treat aneurysms, or ballooning blood vessels, in the aorta, which is the body’s main artery. Its lead product is its Powerlink system, a minimally invasive device where a special type of stent graft is delivered through a catheter to keep abdominal aortic aneurysms from rupturing.
The Powerlink system’s been available in Europe for a decade and received Food and Drug Administration clearance for sale in the U.S. in 2004.
Endologix also sells Powerlink in South America and Japan.
Endologix has grown for many reasons, said Chief Executive John McDermott.
“We have introduced several new products over the past year that have made (Powerlink) easier to use,” McDermott said.
He named the IntuiTrak Express Delivery System, which, among other things, reduces Powerlink procedure times for Endologix’s doctor clients, McDermott said.
Endologix also has introduced devices that can treat other aortic aneurysms.
Besides new products, McDermott said Endologix also has put more resources into its sales staff, including training representatives and strengthening the overall organization.
The market for Endologix’s products has a value of about $775 million per year with annual growth close to 10%, according to Timothy Lee, a medical device analyst with Minneapolis-based brokerage Piper Jaffray Cos.
Competitors include Medtronic Inc., a much larger, more diversified company from Minneapolis, and Cook Group Inc., a privately held device maker based in Bloomington, Ind.
For the 12 months ended in June, Endologix lost $6.1 million.
The company is cash flow positive and expects to remain so, McDermott said on its most recent earnings call.
Late last year, Endologix rejected a buyout offer from Elliott Associates LP, a New York hedge fund that owns about 14% of the company, according to a proxy statement filed with the Securities and Exchange Commission.
The medical device maker’s stock has skyrocketed this year. As of late last week, its shares were up more than 400% since the start of the year with a market value of $270 million.
Analyst Lee began covering Endologix with a neutral rating in August. Lee said that the company is in the position for strong revenue growth as it takes a larger share of the abdominal aortic aneurysm market.
But he also said its potential already was reflected in its stock price, which was around $4.70 a share at the time.
In August, Endologix held an 8% or 9% share of its market and could make more gains, according to Lee.
