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Strong Demand for Urology Products Drives Cogentix Toward Positive Q2
Cogentix Medical's PrimeSight endoscopy system. (Courtesy of Cogentix Medical)

Strong Demand for Urology Products Drives Cogentix Toward Positive Q2

The medical device maker dodged going red, unlike last quarter or the same period last year, as its PrimeSight system continued to drive revenue growth.

Sales of Cogentix Medical Inc.’s urology products rose 8 percent in its second quarter, carried by an ever-rising demand for the company’s PrimeSight system.
 
During the April to June period, revenue leapt 48 percent for all things PrimeSight, the Minnetonka-based medical device maker said of its laptop-shaped endoscopy unit, which uses various video “scope” attachments to let doctors view a patient’s urinary tract.
 
Additionally, Cogentix CEO Darin Hammers said more people were buying the company’s Urgent PC device, a non-invasive neuromodulation system used to treat overactive bladder. Sales of the device increased 5 percent year-over-year.
 
Overall, revenue rose from $12.3 million a year ago to $14.1 million in Cogentix’s second quarter. Net income came out positive—to roughly $420,000—unlike the loss of $2.7 million it posted last year.
 
“Our sales and marketing team continues to perform at a high level,” Hammers said, “and we have decided to expand our US sales force by five territories during the third quarter. As a result, we anticipate second half 2017 revenue growth for our urology business will be above the 11 percent growth we generated in the first half of the year.”
 
That double-digit rise in urology products sales should extend into 2018 as well, Hammers added, citing deals it made in July to acquire its British business partner and to license the manufacture of its products to a company in Monaco.
 
“The two business development agreements we recently executed should add approximately 10 points of growth to urology products revenue in 2018,” he said.
 
With a positive outlook from those deals, Hammers hinted at the possibility for more such announcements in the future.
 
“With approximately $27 million in cash and investments, and no debt on our balance sheet,” he said, “we are continuing to evaluate other business development opportunities.”
 
Company shares were up 14 percent, or 29 cents, to $2.31 as of mid-day Wednesday.