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Biotech / Medical : Endosonics(eson) -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (90)	2/10/1998 7:17:00 AM
From: Asymmetric	Read Replies (1) \| Respond to of 205

BA Robertson Stephens Said Buy (back in Nov). Didn't See This Posted Before Wednesday November 26, 10:53 am Eastern Time Company Press Release SOURCE: BancAmerica Robertson Stephens BancAmerica Robertson Stephens Initiates Coverage on Endosonics With a Buy Rating SAN FRANCISCO, Nov. 26 /PRNewswire/ -- BancAmerica Robertson Stephens research analyst Jeff Barnes initiated coverage today on Endosonics Corporation (ESON) with a Buy rating. Endosonics designs and produces ultrasound imaging systems and catheters specifically for intravascular imaging. The company's recent acquisition of Cardiometrics, the leading supplier of intracoronary functional measurement products, is expected to further enhance their position in the cath lab sector. ''Endosonics is an outstanding value in a pure-play interventional cardiology company,'' said Barnes. He expects Endosonics to grow at 35% to 40% garnering market share and challenging the number one player, Boston Scientific (BSX). As the clinical utility of intravascular ultrasound imaging (IVUS) continues to gain acceptance, Barnes believes that Endosonics is an excellent acquisition candidate for one of the many broad-based cath lab supply companies. Barnes' EPS estimates for 1997 and 1998 are $0.12 and $0.40 respectively. ''With an under-penetrated market, superior technology, improved reimbursement, and clinical trials further justifying use, we see shares of Endosonics rising to the $18 level by the end of 1998,'' Barnes said. On a procedural basis, Barnes expects the IVUS sector to expand at 25% to 30%, potentially reaching $350 million in annual sales of disposable imaging catheters used in the diagnosis and treatment of coronary artery disease. BancAmerica Robertson Stephens is a leading international investment banking firm focused on emerging growth companies. The firm's 45 senior research analysts cover over 500 companies. (Note that Volpe Welty's price target from last year was $21)

To: Asymmetric who wrote (90)	2/10/1998 8:41:00 PM
From: Jimmy Dell	Read Replies (2) \| Respond to of 205

<<A question to the thread: would it be correct to say that ESON's prospects are tied somewhat to the market for coronary stents? I've noticed Guidant and AVEI both taking off on a tear. Would IVUS technology benefit from any kind of a coattail effect? Would appreciate any response.>> Here's what Ken Kam (co-manager of the Technology Value Fund) said in Barron's back in June: "We like a company called Endosonics. They have a technology for looking at arteries from the inside. For years they struggled. They had a triumph of technology, which didn't meet a market need. Then, about two years ago, Johnson and Johnson developed a cardiac stent. A stent is a little coil a cardiologist can implant in an artery to physically hold it open and prevent it from collapsing. During a trial in Italy two years ago, a doctor discovered that if you don't fully extend the stent, blood clots on it. If a clot detaches and ends up in your brain, it can cause a stroke. The only way you can tell if the stent is fully deployed is if you use a catheter -- like the one Endosonic makes -- after you place the stent. It's a fundamental change. The stent went from annual sales of zero to half a billion dollars in a year. Sales of these ultrasound catheters followed the same ramp. "But you'd never have known it looking at the share price. For the first time, two years ago, Endosonic's product finally met a real need. their sales have been growing 60-70% a year ever since, and they just had their first profitable quarter. Having run one of these businesses, I know they have high fixed costs. When you hit break even, incremental sales are very profitable. In the next few quarters, if this company continues to grow 70%, a lot of those incremental sales dollars will drop to the bottom line. That's when people will discover it."