Endologix Inc.’s devices to stop ballooning blood vessels are expanding in the vascular market.
The Irvine company came in at No. 9 on this year’s list of fastest-growing Orange County based public companies by revenue.
Endologix, which makes aneurysm-fighting devices, posted 445% revenue growth during the three years ended June 30. The company went from $3.9 million in revenue for the 12 months ended June 2004 to $21 million in the 12 months through June.
Earlier this year, Endologix said it expects its 2007 sales to come in at $27 million to $29 million.
Endologix’s main product, Powerlink, is a tube-like stent graft that treats an abdominal aortic aneurysm, or a weakening of the wall of the aorta, the body’s largest artery.
Such weakening causes a balloon-like enlargement that could rupture if left untreated. Some 75% of patients who suffer that rupture die, according to Endologix.
Powerlink is placed in the aorta to keep it from rupturing.
Endologix received Food and Drug Administration approval to sell Powerlink in 2004.
The device has been commercially available in Europe since 1999.
But Endologix’s sales growth, like that of many emerging device makers, hasn’t translated to profitability.
In the second quarter, Endologix said it narrowed its net loss to $3.7 million from $4.4 million in the year-ago period.
Second-quarter revenue rose 82% to $6.3 million.
Endologix is pleased with the productivity of its domestic sales force, “and (continues) to see significant growth opportunity in the U.S. market,” said Chief Executive Paul McCormick in a release.
The company plans to expand to about 50 areas by the end of this year.
Endologix counted a recent market value of about $160 million.
Even though the company has made inroads with Powerlink, Endologix has faced
its share of challenges.
Last year it said in a regulatory filing that its accountant, PricewaterhouseCoopers LLP, expressed “substantial doubt” about its ability to continue operating, citing its history of losses.
The company recently raised about $20 million in a stock sale and used its proceeds to hire more sales staff and expand Powerlink’s marketing.
Endologix has 116 workers in Orange County and 170 overall. It was founded in 1992 under the name of Cardiovascular Dynamics Inc.
The company combined with Radiance Medical Systems Inc. in 1999 and changed its name to Radiance.
Radiance then combined with privately held Endologix Inc. and took on that name in May 2002.
Longtime Orange County device investor Michael Henson was involved in both Radiance’s and Endologix’s development. Henson runs Bio-Star Private Equity Fund LLC, a new investment fund that concentrates on heart devices.
THE NUMBERS
Three-year growth: 445%
Yearly sales through June 30: $21 million
Yearly loss: $17.2 million
Market value: $160 million
Employees: 170,116 in OC
Company: medical device maker
