Zacks_Analysts' Blog : Stereotaxis' New Distribution Deal - Analyst Blog

Medical equipment maker Stereotaxis Inc. (STXS) has extended its long-standing exclusive global collaboration with its existing strategic partner for the distribution of the approved magnetic ablation catheters through the end of 2015.      

Under the new agreement, Stereotaxis’ distribution partner has committed to pursue an expanded indication for the magnetic irrigated catheter in the U.S. for treating atrial fibrillation, the most common heart rhythm disorder.

Moreover, the companies have agreed to broaden the product range under the agreement to add a next generation irrigated magnetic catheter that combine their latest technologies. The distribution deal also includes submission of regulatory filings for the approval of magnetic catheters in new markets such as Asia. The exclusive distribution agreement for these catheters will expire at various future dates.

Missouri-based Stereotaxis develops and markets advanced cardiology instrument control system for use in cardiac catheterization labs for the treatment of coronary artery disease and arrhythmias. The company offers the Niobe Magnetic Navigation System, which allows physicians to perform complex interventional procedures. 

Moreover, Stereotaxis’ Odyssey Enterprise Solution integrates and records all lab data allowing physicians to focus on the patient for optimal procedure efficiency. The company’s competitors include Boston Scientific (BSX) and Edwards Lifesciences (EW).

Stereotaxis posted revenues of $13.9 million (up 4.5% year over year) in third-quarter 2010 with Niobe and Odyssey systems generating sales of $5.5 million and $2.6 million, respectively. Odyssey systems orders surged 140% year over year to $4.1 million (a record), reflecting healthy demand for the solution across labs in the U.S. Stereotaxis expects its revenues for fiscal 2010 to grow at a high-single digit rate.