Dear Reader,
Today's profile presents our readership with a company experiencing
tremendous growth in a market where the need for continuing innovation
is paramount. SenoRx (NasdaqGM:SENO) is a medical device 
company
with a compelling razor/razor blade business model functioning within
the breast cancer arena. The company develops, manufactures, and sells
minimally invasive devices for the diagnosis and treatment of breast
cancer and is well established in the marketplace.
As a brief review of this company snapshot below will demonstrate, SenoRx is a company with a business plan displaying innovation and speed to market and a pattern of historical revenue growth that should turn the head of most investors. Additionally, the company's ability to expand on successes while developing a strong product pipeline utilizing an agile sales force able to carry multiple SenoRx products to a consolidating market are critical to continued growth. Its growing international presence adds to investor appeal.
SenoRx was founded in 1998 to design, develop, manufacture and
market minimally invasive devices for the diagnosis and treatment of
breast cancer. Since its founding, SenoRx has developed multiple
proprietary technology platforms and a unique product portfolio that
addresses the entire range of diagnostic and therapeutic procedures in
the breast care market. It is the goal of SenoRx to become the leader
in the marketplace by offering innovative products that dramatically
enhance patient outcomes.
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SenoRx: At the Confluence of Women's Health & Oncology |  |
SenoRx's success in the market arrives in an era when breast cancer treatment/diagnosis need and public awareness are certainly heightened as these statistics published by the renowned Susan G. Komen foundation exemplify. Now more than ever, women are becoming increasingly aware of the risks of breast cancer and the need for early detection and effective treatment. SenoRx aspires to serve both imperatives.
SenoRx is focused on the growing global market for interventional diagnostic and therapeutic products in breast care, while capitalizing on a consolidating U.S. customer base.
Here are some facts about the market:
- An estimated 182,460 new cases of invasive breast cancer were expected to occur among women in the United States during 2008.
- Breast cancer is the second most frequently diagnosed cancer among women.
- Breast cancer accounts for more than 1 in 4 cancers diagnosed in women in the United States.
- One woman is diagnosed with breast cancer every three minutes, and one woman will die of breast cancer every 13 minutes in the United States.
These dire statistics begin to portray the market opportunity and compelling need for SenoRx's diagnostic and therapeutic offerings.
Source: Susan G. Komen Breast Cancer Foundation
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The SenoRx Formula | |
SenoRx has developed a success pattern born of innovation, efficient sales and marketing, and a corporate philosophy that views its accomplishments as stepping stones rather than destination. A review of the company's history and performance since the Initial Public Offering in April 2007 provides substantive reasons for the company's progress and growth pattern.
Innovation and Speed to Market.
SenoRx has established a trend of continual product development and
rapid penetration in target markets. Given the expansive and expanding
category in which the company's product line is utilized, each
additional product generates new revenue streams and increased
aggregate market share for the SenoRx line.
Strategically Positioned at the Confluence of Women's Health and Oncology.
As
the Susan G. Komen statistics above affirm, the rise of breast cancer
awareness and treatment of the dreaded disease establish a vast market
need for SenoRx. As women become increasingly aware of the serious risk
of breast cancer, SenoRx is intent on servicing this health concern
with efficient tools for early detection and effective treatment.
Continual Revenue Growth.
SenoRx has exhibited a historical revenue growth in the mid 30% range,
leveraging its razor/razor blade business model. On average, at least
85% of total revenue earned by SenoRx is garnered by the disposable
component (razor blade) side of the product line after a successful
sale of its devices (razor) to health care providers .
Strong Product Pipeline & Expanding Gross Margins.
The company continues to expand its product line and gross margins.
SenoRx's product line is always expanding, driving the company's
growing presence and leadership in women's breast cancer diagnosis and
treatment. Moreover, the company has successfully expanded its
footprint in breast cancer treatment and testing via an existing sales
force that is efficiently penetrating a consolidating market, making
continuing expansion easier. Increasing awareness, along with advances
in imaging technology for screening, biopsy and treatment, has combined
to create the emergence of integrated breast care centers using the
latest technologies and employing an integrated approach to the full
scope of breast-care services that are required. SenoRx believes there
is significant opportunity for a company that offers breast centers a
full range of minimally invasive diagnostic and therapeutic devices
that are both compatible with multiple imaging modalities and flexible
enough to be tailored to the diverse needs of the physicians on the
breast-care team. SenoRx pledges to continue introducing innovative new
products along with next generation extensions of the existing product
line.
An Established and Growing International Presence.
SenoRx is already in over thirty countries internationally and recently
announced expansion into the massive Chinese market. The universal need
for cancer diagnosis and treatment and SenoRx's increasing
international penetration suggest a near borderless market opportunity.
The company will continue to leverage the successes of its direct sales
force in the U.S. and Canada, but is using experienced distribution
partners internationally.
A Path to Profitability.
For the quarter ended December 31, 2008, SenoRx reported record
quarterly revenues of $13.6 million, an increase of 31.5 percent
compared with $10.3 million in the fourth quarter a year ago. Revenue
for fiscal 2008 grew 33.2 percent to a record $46.7 million compared
with $35.0 million in 2007. Moreover, current trends suggest that
SenoRx will be be cash-flow positive in 2009 (excluding patent
litigation expenses) on an operating basis.
A Positive Trend.
SenoRx exhibits a strong sales momentum going into 2009, with an
expanding market before them. The company's Contura MLB was only fully
commercially launched in January 2008 and the company is enthusiastic
about its potential to further enhance a rapidly growing incremental
revenue stream.
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A String of Successes | |
Recent News Events from SenoRx
SenoRx Reports Fourth Quarter Profit On Record Revenues and Gross Margin for Quarter and Fiscal Year
SenoRx, Inc. reported financial results for its fourth quarter and
fiscal year 2008. For the quarter ended December 31, 2008, SenoRx
reported record quarterly revenues of $13.6 million, an increase of 31.5 percent compared 
with $10.3 million in the fourth quarter a year ago. Revenue for fiscal 2008 grew 33.2 percent to a record $46.7 million compared with $35.0 million in 2007.
For the fourth quarter of 2008, gross profit increased 62.5 percent to $9.4 million, or a record 69.1 percent of revenue, up from $5.8 million, or 55.9 percent of revenue, in the fourth quarter of 2007. SenoRx reported an operating profit for the fourth quarter of $108,000, compared with an operating loss of $2.9 million in the same period last year. The operating profit for the quarter included stock-based compensation expense of $536,000, compared with $568,000 in the same quarter last year. Also included in the results for the fourth quarter were $486,000 in attorney and related costs incurred as a result of our ongoing patent litigation with Hologic. CLICK HERE FOR THE FULL STORY.
SenoRx Announces Launch of a New SenoSonix(tm) Model With a Portable Hand-Carry Laptop Ultrasound Component
SenoRx, Inc. today announced the launch of an additional model of
its SenoSonix(tm) System. Like the original SenoSonix, the new model is
an integration of SenoRx's EnCor(r) breast biopsy system with
ultrasound imaging. This new version of the device incorporates a
microminiaturization ultrasound technology that combines personal
computing power and flexibility. CLICK HERE FOR THE FULL STORY.
SenoRx Announces First Peer-Reviewed Publications of Clinical Findings Related to Its Contura(tm) MLB
SenoRx today announced that two peer-reviewed journal articles summarizing clinical findings related to its Contura(tm) Multi-Lumen Balloon (MLB) Catheter are pending publication. These and other studies support our belief that a patient treated with Contura MLB receives a more targeted dose of radiation, while minimizing radiation to healthy tissue such as the skin and ribs. As a result, more patients are being treated with Contura MLB who previously were not candidates for accelerated partial breast radiation therapy. CLICK HERE FOR THE FULL STORY.
SenoRx Announces CE Mark to Commercialize Contura(tm) MLB in Europe
SenoRx announced that it has received the right to apply the CE Mark
to its Contura(tm) MLB short-term breast radiation balloon catheter.
The multi-lumen radiation balloon delivers radiation to the tissue
surrounding a lumpectomy cavity following surgery for breast cancer. CLICK HERE FOR THE FULL STORY.
SenoRx Announces Entry Into China Market
SenoRx, Inc. today announced its entry into the China market, further extending its presence in the global market. In addition to currently selling its products in more than 30 countries, SenoRx has begun marketing EnCor(r), its vacuum-assisted breast biopsy product, and its GelMark(tm) line of breast biopsy tissue markers through its distribution partner, Beijing Eastwide Medical Ltd (BJEW). CLICK HERE FOR THE FULL STORY.
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Contact | |
For More Information:
Lila Churney
Director, Investor Relations
3 Morgan
Irvine, CA 92618
949-362-4800 x132
Web Site: http://www.senorx.com
Safe Harbor Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. This report is property of Integrity Media Incorporated (IMI). IMI provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. IMI has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources believed by IMI to be reliable, but IMI provides no assurance, and none is given, as to the accuracy and completeness of this information.
Disc laimer: This report has been published by Integrity Media Inc. (IMI). The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision.IMI has been paid $30,000 by SenoRx Inc. for preparation and distribution of this report and other advertising services. This constitutes a conflict of interest as to IMI's ability to remain objective in its communication regarding the subject company. Write or call IMI for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934. IMI is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. IMI and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of Integrity Media Incorporated. Remarks herein have not been reviewed by the Food and Drug Administration and IMI does not warrant or guarantee the claims of SenoRx Inc.
