Conceptus Wins Jury Verdict - Analyst Blog
October 19 2011 - 6:30AM
Zacks
Conceptus (CPTS)
recently received a favorable ruling from a jury in the District
Court of the Northern District of California in a patent litigation
against Hologic (HOLX). The jury ruled that
Hologic’s Adiana Permanent Contraception infringes two of
Conceptus' patents related to the Essure procedure. As a result,
Conceptus was awarded $18.8 million as compensation for
damages.
Conceptus presently plans to seek
an injunction in order to stop Hologic from selling Adiana products
in US. This issue will be addressed by the Court in future
proceedings. The company is expected to provide further details on
the case during its third quarter 2011 financial results.
Conceptus derives a major share of
its revenue from Essure, which is approved in many countries,
including the US, Europe, Australia, Canada, Mexico, Central and
South America, and New Zealand.
However, the company has been
witnessing severe challenges in the recent past. During the second
quarter of fiscal 2011, domestic sales of Essure slipped 11.4% year
over year to $24.8 million impacted by lower patient visits to
OB/GYN offices and trialing of Adiana by physicians.
In a bid to retrieve the situation,
the company is expanding its sales coverage and gradually
witnessing success in reducing the impact of competition,
particularly from physicians’ trialing other competing products. In
September this year, the US Food and Drug Administration (FDA)
approved the removal of nickel hypersensitivity contraindication
from the Essure procedure Instructions for Use (IFU), which will
further help Conceptus to gain traction in its domestic
business.
Moreover, sales of the Essure
system also depend on the number of physicians trained to perform
the procedure. Conceptus is striving toward enhancing the
availability of the system worldwide by raising consumer and
physician awareness as well as imparting training to the physicians
for performing the procedure.
We remain ‘Neutral’ on Conceptus
over the long term, in line with its peer.
CONCEPTUS INC (CPTS): Free Stock Analysis Report
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