Revenues at Kensey Nash grew to a record $22 million in the company’s latest quarter, a 29% increase over the same period last year. Net sales grew to $15.0 million, a 42% increase from the $10.5 million reported in Q4 2007.
- Orthopedic sales increased 39% to $8.4 million, primarily due to a strong showing in Kensey’s sports medicine and spine product portfolios.
- Cardiovascular sales increased 29% to $4.2 million, largely the result of vascular closure product component sales to St. Jude Medical.
Royalty income, though robust, grew at a slower pace. Royalties increased 8% to $7 million and included $5.7 million in Angio-Seal royalties, a 5% year-over-year increase.
Higher than expected end-user sales led to a 21% increase in royalties from Orthovita. That company launched a new Vistoss Bioactive Foam product; Vistoss foam is used in bone graft procedures to aid in the healing response. Orthovita royalties totaled $1.2 million.
Total revenues for the fiscal year ended June 30th, 2008 were $79.8 million, up 15% from total revenues in 2007. Looking forward, Kensey expects fiscal 2009 revenues of $86.7 to $89.0 million, a 9% to 12% increase over fiscal 2008 revenues. The company expects net sales to grow 8% – 12% and royalty income to increase 7% – 8%.
Kensey completed the sale of its endovascular business to Spectranetics during the quarter for $10 million upfront and additional milestone payments of up to $14 million, pending sales, product development and FDA approval objectives.
Kensey also delivered on its previously announced $25 million share repurchase program. Thus far, the company has purchased 868,000 shares of its common stock for a total of $24.4 million, with approximately $0.6 million remaining. With the stock near a 52-week high, that program seems to have worked out well for the firm.