Seeking Alpha
What is your profession? ×
Profile| Send Message|
( followers)

Synergetics USA (NASDAQ:SURG) has introduced a lower priced, electrosurgical generator with full feature cut and coagulation modes. The new unit is designed to fill the price gap created by its coagulation only unit, COAG, and the up-market Advantage, named DualWave.

The company’s decision was spurred by pricing pressure of competing manufacturers, who have flattened the formerly healthy margins of its premium product line. Synergetics reports that the new product should “dramatically improve sales profit margins”.

Like the DualWave bipolar generator, the new system (which will employ the Malis waveform) is capable of performing the two separate functions of cutting and coagulation. However, the system will not have the improved cutting ability of the DualWave system and will not accept hand-switched bipolar pencils.

This unit will provide us with selling options, especially when confronted with the price compression that we’ve seen from competitors, said Gregg D. Scheller, President and CEO of Synergetics. [Malis] can be produced at a much lower cost and will offer an alternative to those customers who are not interested in the full featured Advantage.

Synergetics’ products are designed and manufactured to support micro or minimally invasive surgical procedures. The company’s generators focus on eliminating heat and electrical current seepage, making them safe for use near nerves, bones, blood vessels and metal implants. In addition to its surgical devices and equipment for neurosurgery and ophthalmic applications, the company designs and manufactures reusable and disposable supplies and accessories for use with such devices and equipment.