Vascular brachytherapy firm Novoste of Norcross, GA, has reported 2004 fiscal first-quarter revenue of $7 million, a sharp decline compared with $20.7 million reported in the same period last year.
For the quarter (end-March 31), the vendor had a net loss of $4.6 million, compared with a net income of $2.1 million in the first quarter of 2003.
The firm said that its revenues continue to be negatively impacted by the introduction of drug-eluting stents by competitors and aggressive use of the devices by physicians as an alternative to Novoste's vascular brachytherapy products for prevention of restenosis.
Novoste also reported that it has signed an agreement with interventional device developer Guidant of Indianapolis in which Novoste will take over Guidant's vascular brachytherapy business in the U.S. and Canada.
Under terms of the agreement, Guidant will discontinue its vascular brachytherapy business in the U.S. and Canada over the next six months. Novoste will pay $2.5 million and will pay a 5% royalty on vascular brachytherapy product sales for Guidant assets, including the company's customer list, Novoste said.
By AuntMinnie.com staff writersApril 22, 2004
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