Contraception device maker Conceptus Inc. (CPTS) recently completed 10 years of receiving CE Mark approval for its Essure procedure. To celebrate the milestone, the company organized a symposium at a conference in Londonon September 23, 2011. Several studies were presented on the Essure procedure demonstrating medical experience from contributors across Europe.
Conceptus expects this endorsement to further boost the sale of the company’s non-surgical permanent birth control procedure, Essure.
The company derives a major share of its revenues from Essure. However, during the second quarter of fiscal 2011, domestic sales of Essure slipped 11.4% year over year to $24.8 million impacted by lower patient visits to OB/GYN offices and ongoing competitive product trialing.
The company in a bid to retrieve the situation is expanding its sales coverage and gradually witnessing success in reducing the impact of competition, particularly from physicians’ trialing other competing products. In September, the US Food and Drug Administration (FDA) approved the removal of nickel hypersensitivity contraindication from the Essure procedure Instructions for Use (IFU), which will further help Conceptus to gain traction in its domestic business.
Moreover, sales of the Essure system also depend on the number of physicians trained to perform the procedure. Conceptus is striving toward enhancing the availability of the system worldwide by raising consumer and physician awareness as well as imparting training to physicians on performing the procedure.
During the recently reported quarter, the company expanded its physician penetration by enrolling 538 new physicians into preceptorship, certifying approximately 290 physicians and transitioning approximately 110 physicians to performing procedures in the office setting. Till date, around 13,553 physicians are fully equipped to perform the Essure procedure.
Conceptus faces tough competition from Hologic (HOLX), which is a Zacks #3 Ranked peer with Neutral recommendation.
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