Edap (EDAP -3.5%) falls after missing the one available analyst EPS estimate, although revenues...


Edap (EDAP -3.5%) falls after missing the one available analyst EPS estimate, although revenues beat by a slim margin and rise 23% Y/Y on "strong demand for [the company's] innovative lithotripsy product range in key global markets." CEO Marc Oczachowski says the "FDA process for Ablatherm-HIFU is on track." Profit margins fall 220 basis points Y/Y on a negative yen impact and operating expenses increase 9.7% on "continued regulatory expenses associated with the PMA filing for Ablatherm-HIFU, as well as sales and marketing investments." (PR)

Comments (5)
  • wbjudge
    , contributor
    Comments (76) | Send Message
     
    We are supposed to get excited because they missed one analyst " guess". Once they get approval from the FDA watch earnings and revenue soar.
    16 May 2013, 11:54 AM Reply Like
  • Dr. Know
    , contributor
    Comments (12) | Send Message
     
    I'm excited about EDAP, but I'm waiting for an SA author to provide a technical review (hint hint). Would this be a good point to add to a position?
    16 May 2013, 12:39 PM Reply Like
  • pcmeehan
    , contributor
    Comments (3) | Send Message
     
    I am concerned that sales of the Ablatherm device seem slow in Europe where they have had CE approval since 2000, as well as in other countries (excluding the US) where they can sell. Perhaps it is a problem of reimbursement and the cost of the device and the procedure. You can get a rise in the stock price for an FDA approval but afterwards, you have the question and the impact of who is going to pay what to have this procedure performed.
    I remain a bullish EDAP stockholder.
    17 May 2013, 12:19 AM Reply Like
  • wbjudge
    , contributor
    Comments (76) | Send Message
     
    Stay bullish. The US. Economy is the largest in the world and the health care market is strong. Once FDA approval is secured the price will skyrocket. Is starting already.
    19 May 2013, 12:56 PM Reply Like
  • pcmeehan
    , contributor
    Comments (3) | Send Message
     
    wbjudge - We need to stop thinking we are the only economy in the world that matters, especially for healthcare. As we now know , FDA panel to discuss approval will be next year. This is a normal process for the FDA and there will be many FDA questions for this new therapy. We see the stock price reaction now because too many expected approval this year. Again, price may "skyrocket" on FDA approval but long term value for the company lies in reimbursement and acceptance. FDA approval guarantees no acceptance in the marketplace.
    I remain bullish without your prompting.
    17 Jun 2013, 11:18 PM Reply Like
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