Trimedyne Inc. (OTCBB: TMED), manufacturer of lasers and disposable fiber optic delivery devices, offers its unique laser products as an alternative to surgery, allowing for outpatient services in more complicated surgeries. This allows for the reduction in hospitalization costs and also reduces patient traumas related to surgery.The company is divided into two areas: orthopedics and urology. The orthopedic division contributes to 50 percent of the company’s revenue. The lasers are used to treat herniated and ruptured disks on outpatient basis – taking as little as 30 minutes.
The urology division of Trimedyne contributes to 30 percent of its revenue, focusing on the treatment of patients with an enlarged prostate. The company also uses its lasers to fragment stones in the bladder and kidney, a very common and painful occurrence in many adults.
Working in the spine is a complicated procedure, and for this reason, there aren’t too many surgeons qualified to work with laser procedures. Dr. Marvin Loeb, Trimedyne CEO told Market News First that of the 5,000 surgeons licensed to operate on spinal procedures, only about 100 of those surgeons in the U.S. can use the lasers.
“Working in the spine is extremely delicate,” said Loeb. “It takes a spinal surgeon … who has done an additional two or three year residency in operating on the spine.”
The physician have to learn to move the device, monitoring their movements via television screen – similar to that of a meteorologist, meaning left is right and right is left. Training the physicians to do this can be costly – and Loeb said balancing the money spent on training courses while remaining profitable is difficult and may be reason for the product’s “slow takeoff.”
But the wait might be worth it. Loeb estimates the market for treating herniated and ruptured disks to be about 600,000 cases per year.
The company recently entered into and agreement with Luminous, one of the largest medical laser manufacturers. Per the agreement, Trimedyne will manufacture a device to be marketed by Luminous overseas and by Boston Scientific in the U.S. and Japan.
“We have a terrific marketing partner in the U.S. and a very large, established company in the laser surgical fields to market this product outside the U.S.,” said Loeb. “We are in the process of developing the product ready for the market … we expect that after the production process is complete … we think this will all culminate within the fourth calendar quarter of the year.”
Loeb said that while the company has remained profitable for the past four years, the deal with Luminous is expected to generate a “dramatic increase in Trimedyne’s revenue and bottom line.”
Last year the company reported revenues of roughly $6 million – and expects to remain profitable in the coming year.
“It takes very good management to do that, and we have a very competent staff here,” Loeb said. “We are experienced in doing what we do.”
