--Sales layoffs were effective as of last week
--Affects roughly 30 positions
--Ending promotion agreement for uterine product to focus on key
Essure procedure
(Changes emphasis in first paragraph, adds information on
layoff, updates share price.)
DOW JONES NEWSWIRES
Conceptus Inc. (CPTS) said it has cut its U.S. field sales staff
by roughly 15% and will discontinue promotion of a uterine product
in a bid to refocus its sales efforts.
The moves come as the company works to place a stronger focus on
its Essure procedure, a U.S Food and Drug Administration-approved
procedure for permanent birth control without surgery or drugs.
"We believe the long-term opportunity for our Essure procedure
remains highly attractive, and the sales force time to drive the
Gynecare Thermachoice promotion is, in this case, better redirected
to our highest priority, which is to grow our Essure business,"
said Chief Executive D. Keith Grossman.
The Gynecare Thermachoice uterine balloon therapy system is
manufactured for and marketed by a division of Ethicon, an
operating company of Johnson & Johnson (JNJ). Grossman said
Conceptus will work with the company to ensure a smooth transition
for customers of the product.
At the same time, Conceptus said it has cut roughly 30 positions
from its U.S. field sales staff. The layoffs were effective as of
last week, a spokesman for Conceptus said.
Conceptus last month reported a slowdown in sales growth in
November and softness in procedure volumes in France and Spain, its
two largest overseas markets. As a result, the company lowered its
sales view for the year to $126 million to $128 million, down from
a prior $132 million to $136 million target.
Shares were recently off 3% to $12.14. The stock is down roughly
9% over the past 12 months.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com