AngioDynamics Reports Oncology/Surgery Division Developments

May 24, 2011 at 4:01 PM EDT

  • U.S. distribution contract for LC Beads to expire on December 31, 2011
  • FDA approves IDE for NanoKnife® System study in prostate cancer
  • Company expects to submit IDE for NanoKnife System study in pancreatic cancer by mid-June
  • Oncology/Surgery division to enhance focus on NanoKnife, and core ablation and surgical resection products

ALBANY, N.Y.--(BUSINESS WIRE)-- AngioDynamics (NASDAQ:ANGO), a leading provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology, today reported several developments in its Oncology/Surgery division.

After several months of discussions, AngioDynamics has concluded negotiations with BTG (LSE:BGC) concerning a possible extension of its distribution agreement for the LC Bead embolization product. As a result, the Company will not distribute LC Beads in the U.S. beyond the agreement's December 31, 2011 expiration date. The LC Bead product line represented approximately 13% of AngioDynamics' net sales through the first nine months of fiscal 2011. Following the conclusion of the distribution agreement, AngioDynamics' Oncology/Surgery division will increase its focus on the global growth opportunities of its high-margin NanoKnife products and programs, and radio frequency ablation and surgical resection devices. In addition, the Company continues to pursue M&A transactions that would provide the Oncology/Surgery and Vascular sales forces with additional products and services to offer customers.

"Our success with the LC Bead product over the past five years demonstrates the strength and capabilities of our U.S. Oncology/Surgery sales team," said Jan Keltjens, President and Chief Executive Officer. "With the expiration of the distribution arrangement, we have an opportunity to focus our Oncology/Surgery division on developing and commercializing our fastest growing product line and single largest growth opportunity, the NanoKnife System. In addition, we will increase our attention on our ablation and surgical resection products. At the same time, our strong balance sheet and strong operating cash flow provide significant resources to acquire products or companies in the Oncology/Surgery, as well as Vascular, space which would provide our strong sales teams with additional growth opportunities. Despite the loss of LC Bead revenue in the second half of fiscal 2012, our team is focused on implementing strategies designed to drive overall top- and bottom-line long-term growth in the next fiscal year."

NanoKnife Clinical Progress

The U.S. Food & Drug Administration (FDA) has granted Investigational Device Exemption (IDE) approval for the NanoKnife System, allowing AngioDynamics to conduct a clinical study of the NanoKnife System for the ablation of low risk, localized prostate cancer. The FDA approval is for an initial study of a total of six patients at up to three sites in the U.S., which will provide the basis for additional clinical trials. Additionally, the Company expects to submit an IDE application to the FDA for a clinical study of the use of the NanoKnife System in pancreatic cancer by mid-June 2011.

About AngioDynamics

AngioDynamics, Inc. is a leading provider of innovative, minimally invasive medical devices used by professional healthcare providers for vascular access, surgery, peripheral vascular disease and oncology. AngioDynamics' diverse product lines include market-leading ablation systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products, embolization products and venous products. More information is available at

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding AngioDynamics' expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as "expects," "reaffirms," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "optimistic," or variations of such words and similar expressions, are forward-looking statements. These forward looking statements are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual events or results may differ from AngioDynamics' expectations. Factors that may affect the actual results achieved by AngioDynamics include, without limitation, the ability of AngioDynamics to develop its existing and new products, future actions by the FDA or other regulatory agencies, results of pending or future clinical trials, overall economic conditions, the results of on-going litigation, general market conditions, market acceptance, foreign currency exchange rate fluctuations, the effects on pricing from group purchasing organizations and competition, the ability of AngioDynamics to integrate purchased businesses, as well as the risk factors listed from time to time in AngioDynamics' SEC filings, including but not limited to its Annual Report on Form 10-K for the year ended May 31, 2010, and its Quarterly Reports on Form 10-Q for the periods ended August 31, 2011, November 30, 2011 and February 28, 2011. AngioDynamics does not assume any obligation to publicly update or revise any forward-looking statements for any reason.

Company Contact:
AngioDynamics, Inc.
D. Joseph Gersuk, CFO, 800-772-6446 ext. 1608
Investor Relations Contacts:
EVC Group, Inc.
Doug Sherk / Gregory Gin, 415-896-6820
Media Contact:
EVC Group, Inc.
Chris Gale, 646-201-5431

Source: AngioDynamics, Inc.

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