Bearish stock to watch: AngioDynamics, Inc. (NASDAQ: ANGO)

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AngioDynamics, Inc. (NASDAQ: ANGO) stock fell 3.1% on 4th October, 2019 (as of 11:41 am GMT-4; Source: Google finance). The company acquired Eximo Medical, Ltd., which is an early commercial stage, medical device company, and its proprietary 355nm wavelength laser-technology platform for $46 million in up-front amount with up to $20 million of contingent consideration related to certain technical and revenue milestones. The company will fund this transaction exclusively through the use of cash on hand. The acquisition of Eximo Medical, Ltd. is consistent with the company’s stated strategy of acquiring highly innovative and disruptive technologies within the clotting space. The product is currently in a limited launch stage, the company will be building a significant, commercial and sales organization over the coming quarters to fully support the growth trajectory the company believe this product will achieve as it penetrates this significant market.

Moreover, ANGO has recently announced a dual source group purchasing agreement with Premier to supply implantable infusion ports, including BioFlo, Vortex and Xcela as well as 2 committed sole-source agreements with the Ascend and SURPASS membership groups. It provides the company to access to Premier’s extensive membership network of approximately 4,000 U.S. hospitals and 165,000 other providers, while further validating the high-quality portfolio of port products.

On the other hand, ANGO’s net sales for the first quarter of fiscal 2020 were $66 million, which is a  year-over-year growth of 3.3%, that includes RadiaDyne and BioSentry acquisitions and a 1% decline on an organic basis, excluding the fiscal 2019 revenue contribution from Asclera product, which the company had stopped distributing during the fourth quarter of fiscal year 2019, revenue growth in the first quarter was 5.6%, representing organic growth of 1.3%. On organic basis, AngioVac, dialysis catheter and thrombolytic products reported strong growth during the quarter. Separately, the Venous Insufficiency products returned to growth, when excluding Asclera. These pockets of growth were offset by declines in our PICCs and ports products as well. The total VIT business grew 1.1% year-over-year, and excluding Asclera grew 6.4%. Strong growth in AngioVac and the thrombolytic products along with a slight growth in the Venous products, ex Asclera, were partially offset by a slight decline in the core business. Vascular Access revenue fell about 2.7% during the first quarter as continued strong performance in sales by dialysis products and growth in midlines was offset by declines in sales of PICCs and ports.

 

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