Changes are afoot at Queensbury NY-based AngionDynamics. The company said yesterday that it would begin the search for a new CEO to replace company co-founder Eamonn Hobbs.
Hobbs (pictured) will continue on as Vice Chairman of the Board of Directors where he will focus on the company’s newly acquired irreversible electroporation (IRE) technology. Hobbs described his strengths and ambitions as “entrepreneurial in nature” and the opportunity in IRE as “enormous and immediate”.
In April, AngioDynamics acquired the NanoKnife System (an irreversible electroporation platform) from Oncobionics. Thus far, the device has been cleared for general soft tissue ablation. AngioDynamics intends to file investigational device exemptions with the FDA to pursue additional and more specific indications.
Although it’s too early to estimate the product’s prospects, under AngioDynamics watch, IRE has blockbuster potential. Synergies with the company’s other oncology products (which use radio frequency energy to destroy target tissue) abound.
Preliminary Second Quarter Results: Downside Guidance
AngioDynamics yesterday issued preliminary second quarter results. The company said it expects $48.5 million in second quarter revenue, an increase of 17% year-over-year, but below the previous consensus of $50.5 million.
Shares of the company were down nearly 20% this morning, offering a potential buy opportunity for longs. Regular Sentinel readers know I have a high opinion of the company and its prospects.