Endologix Inc.’s devices that stop ballooning blood vessels are spurring growth, albeit at a somewhat slower pace.
Irvine-based Endologix fell two places to No. 8 on this year’s list of fastest-growing public companies in Orange County. Endologix ranked No. 6 on the past two lists.
The company posted 76% revenue growth for the three years through June 30. It went from $32.8 million in revenue for the 12 months through June 2008 to $57.6 million for the same period through this past June.
The company’s devices treat aneurysms of the aorta, the body’s main artery. Endologix’s primary product is Powerlink, which delivers a stent graft via a catheter to keep a ballooned blood vessel from rupturing.
The company received Food and Drug Administration clearance for Powerlink in 2004. The device also is sold in Europe, South America and Japan.
The company has benefited from “improved performance by our U.S. sales team and strong international demand for our products,” Chief Executive John McDermott said in statement with Endologix’s second-quarter results.
Endologix expects “additional strength” from newer Powerlink devices during the fourth quarter, he said.
The company recently received FDA and European regulatory approval for its PowerFit aortic extension device, which is for abdominal aortic aneurysms.
The company is investing in research and development to “further broaden its product line and treat more patients with aortic disorders,” McDermott said.
Endologix competes with Cook Group Inc. of Bloomington, Ind., C.R. Bard Inc. of Murray Hill, N.J., and Medtronic Inc. of Minnesota.
Endologix and Bard are squaring off in court over patents.
Profits
Profits remain a challenge for Endologix. The company posted a narrowed second-quarter loss of $380,000.
For the 12 months through June, Endologix lost $1.4 million.
The company expects to post a full-year profit but hasn’t specified a number.
Analysts on average look for Endologix to break even this year on revenue of $63.8 million.
Shares of Endologix have cooled after a 2009 run-up that saw them rise more than 300%.
So far this year, Endologix’s shares are off about 15% with a market value of nearly $230 million.
Capstone Securities analyst John Putnam upgraded the company in a July research note.
Putnam said he upgraded the company based on approval for new Powerlink devices, which he said made Endologix “as competitive as any of its competitors.”
Besides that, Putnam said that Endologix’s continued expansion of its sales force should improve sales.
Endologix has 217 workers, including 145 in OC. It was started in 1992 as Radiance Medical Systems Inc. and changed its name to Endologix in 2002. n
THE NUMBERS
Three-year growth: 75.8%
12-month revenue through June: $57.6 million
Yearly loss through June: $1.4 million
Market value: $230 million
Employees: 217, 145 in OC
Company: Medical device maker
