Feb 28 Shares of medical device maker Endologix
Inc fell as much as 28 percent after the company
forecast its slowest annual revenue growth in a decade for 2014,
hurt by weak sales in the United States.
The maker of minimally invasive treatments for aortic
disorders also said on Thursday revenue at the end of December
was hurt by a reduction in medical procedures in the United
The weaker-than-expected outlook was also caused by delays
in the product launches and increased competition, analysts
said. But they added these issues appeared "fixable".
"Some of these issues will be resolved over time, and likely
ease throughout the year," said BMO Capital Markets analyst
The company forecast full-year global sales growth of 11-15
percent for 2014. This marks its slowest growth rate since 2004.
However, Rick Wise, an analyst with Stifel, Nicolaus & Co,
expects Endologix to bounce back to a growth rate of 20 next
year driven by the company's experimental device, Nellix.
Nellix is being tested to treat an enlargement of the blood
vessel that supplies blood to the abdomen.
Wise said Nellix was a potential workhorse graft that could
meaningfully expand Endologix's market share.
The company commenced a limited market introduction of the
Nellix system in Europe last year, and expects to launch Nellix
in the United States by the end of 2016.
Wuensch cut her price target on the company's stock to $17
from $20, while Wise lowered his target price to $17 from $20.
Shares of Endologix were trading down 24 percent at $13.55
in late morning trade, after earlier hitting a low of $12.86 on
Nasdaq. The stock has risen roughly 4.7 percent since the
company reported third-quarter results in October.
(Reporting by Shailesh Kuber; Editing by Savio D'Souza)