Milestone Scientific Sees Profitable 1Q
By Stefan Fatsis
NEW YORK--Milestone Scientific Inc. (MS) said strong orders for its computerized device designed to give dental patients "painless" shots would lead the company to post its first quarterly profit.
In an interview with Dow Jones, Daniel R. Martin, president and chief operating officer of the Livingston, N.J., company, said Milestone expects to exceed a recent report by NationsBanc Montgomery Securities Inc. projecting a break-even first-quarter.
"We'll do better than break even," he said. "It'll be modestly profitable."
Martin said the company would report first-quarter sales in excess of $5 million. He declined to project full-year sales or income. NationsBanc Montgomery Securities forecast that Milestone will earn 21 cents a share on sales of $28.5 million in 1998. For 1997, Milestone reported a net loss of $7.4 million, or $1.21 a share, on sales of $2.9 million. The company expects to report first-quarter earnings early next week.
The company's principal product is "The Wand," a computerized device that lets dentists inject anesthesia more efficiently and without the attendant pain. The pencil-sized tube and needle first numbs the gum area where the injection is to occur. Then it delivers the anesthetic at a rate regulated by the computer. That reduces or eliminates the high rate of pressure in a conventional hypodermic injection, the typical source of pain for patients. "This is really the first change in that product in 150 years," Martin said.
The Wand, which sells for around $1,000 with disposable injection tubes costing $1 each, was introduced at the American Dental Association convention in October. The company has received orders for about 12,000 units, and Martin said it expects to complete filling about 5,000 back orders by May.
Martin said the company plans to adapt the product for use in other medical fields, such as cosmetic surgery, podiatry, breast biopsies, spinal taps, obstetrics and gynecology and pediatrics. Milestone last month said the Food and Drug Administration had asked for additional information about non-dental uses of the device. The company said it hoped to secure marketing clearance for other uses by the end of the year. Prices for the device in other fields are expected to be higher.
"It has applications in areas other than dentistry and not just in the United States," Martin said. "The product has been on sale now for 120 days. We think we have very bright prospects." The company estimates the worldwide dental market for the device at around $500 million.
-Stefan Fatsis; 201-938-5099
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