The market for aesthetic medical devices gained some ground during the 2nd quarter, a MassDevice.com analysis shows, although healthy sales growth didn’t necessarily translate into healthy bottom lines for all comers.
An inspection of 2nd-quarter earnings reports for 8 medical device companies that make aesthetic devices showed average sales growth of nearly 30%. Two companies, PhotoMedex (NSDQ:PHMD) and Cynosure (NSDQ:CYNO), saw top-line gains of 74% and 50%, respectively, and were 2 of only 3 companies on the list to log black ink during the quarter with (Cynosure and Photomedex swinging from red to black during the period).
Allergan (NYSE:AGN), however, led the profits charge with robust growth of nearly 20% on about 5% sales growth. Of the other 5 companies we looked at, only Palomar Medical (NSDQ:PMTI) managed to pare losses (by a healthy 63%).
The revenue growth for the sector is due to 3 main factors, according to Leerink Swann analyst Richard Newitter: Stable purchasing trends and expectations; better access to credit for doctors, "which can be an important factor in physicians’ AED purchasing decisions,"; and steady procedure volume growth, "a potential leading indicator for AED spending."