We recently spoke with Matt Dolan of Roth Capital Partners about Small Cap Medical Device Companies as part of our Medical Devices Report. When discussing his list of interesting companies at the peak of his list was Volacno Corporation;

Mr. Dolan: … we believe one interesting company is Volcano Corporation (VOLC), which sells into the cath lab where a number of minimally invasive cardiovascular procedures are performed. Diagnostic catheterizations and stent procedures remain a significant area of medical care today, and Volcano provides imaging modalities that provide feedback to the physician as to the type of lesion being assessed and improve a physician’s ability to place a stent appropriately. Clinical outcomes have supported the use of the company’s IVUS (Intravascular Ultrasound) imaging and functional measurement (FM) devices, suggesting that these technologies can improve patient outcomes significantly. We think this is particularly important, considering some of the recent concerns surrounding stent safety, with issues like late stent thrombosis and in-stent restenosis often being debated at medical conferences. One could also make an argument that this technology reduces the cost of care by improving patient outcomes and allowing physicians to use stents more selectively, which speaks to some of the issues regarding cost effectiveness that we discussed earlier.

With the company generating 75% of it revenue on a recurring basis through disposable catheters and a growth rate of 20% expected Volcano could be a acquisition target over time, and any company that sells catheters and would name themselves Volcano can’t be half bad.

This entry was posted on Monday, April 13th, 2009 at 2:09 pm and is filed under Healthcare Stocks. You can follow any responses to this entry through the RSS 2.0 feed.