Having acquired onetime rival Diomed for a song, AngioDynamics has launched a new varicose vein therapy brand, VenaCure EVLT. The new brand combines AngioDynamics’ VenaCure with Diomed’s EVLT.
“As the name conveys, our new brand will be everything you liked about VenaCure and EVLT in one package,” said Sean Morris, Senior VP of AngioDynamics’ Peripheral Vascular Division.
In June, Angiodynamics paid $11 million in cash for Diomed’s U.S. and U.K. operations. With the acquisition, AngioDynamics substantially strengthened its position in the worldwide market for the treatment of varicose veins.
Prior to its legal travails, and subsequent bankruptcy, Diomed had an attractive business. In the quarter ended June 30, 2007 (which serves as a good reference point), the company’s EVLT installed base exceeded 1,200 systems. Half of those were “closed” – designed exclusively for Diomed’s single-use disposables. In that quarter, 110,000 procedures were performed using Diomed disposables; the company earned $6.5 million with gross profit of $3.0 million. During the 12 months ending September 30, 2007, Diomed had worldwide sales of $25.4 million.
To help boost sales of its new system, AngioDynamics will offer physicians a range of promotional services to help market the treatment to patients. The company says its online physician locator generates “thousands of referrals” each month. 35 former Diomed employees have joined the company’s Peripheral Vascular business unit.
Previously: Strong Showing at AngioDynamics Despite Diomed Baggage