Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Stocks to Watch in the Urology Devices Market

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The broad urology devices market includes many large and small companies. Three interesting businesses are Endo Health Solutions (NASDAQ: ENDP  ) , C.R. Bard (NYSE: BCR  ) and Boston Scientific (NYSE: BSX  ) . Boston Scientific and C.R. Bard have dominant positions and worldwide presence in the devices market. Endo Health is more focused on the benign prostatic hyperplasia, or BPH, market. BPH is a non-cancerous swelling of the prostate gland which is a painful, but almost never fatal, disease. More than 220 million males suffered from BPH in 2012.

Products in BPH therapy
Conventional therapies have issues which include severe complications and side effects; also, the treatment cost is very high. Therefore, a minimally invasive BPH therapy like a laser could become an effective and safe alternative to surgery, because the process has limited side effects, is more tolerable, and less costly.

Among the three companies, Endo Health offers devices and services for patients with different urological disorders, including pain and cancer diseases. Its BPH therapy includes the Green Light Laser system, TherMatrx Office Thermo Therapy, and UroLume Urethral Stent.

Green Light Laser system is designed to reduce the complications associated with urethral surgery. The company continues to report increased sales with high-margin devices such as GreenLight consoles and fiber sales in the men's health segment, and also provides services related to urological disorders through another business segment (HealthTronic).

In contrast, Boston Scientific has a broader product range. It has a comprehensive range of products that are used during the treatment of BPH, urinary incontinence, and kidney stones. The company has an innovative pipeline in enlarged prostate, including Bipolar Resection, StarFire Laser, and new BPH therapies.

C. R. Bard also develops a wide range of products in urology. However, it is restricted to basic drainage products, continence products, and urological specialty products. However, the company has some limited focus on BPH therapy.

Endo Health has a significant presence in BPH therapy, and there should be upside with increasing demand for its laser therapy products. Its BPH therapy business represents nearly 20% of total sales. In the recent quarter, AMS's BPH business (16% of total sales) reported sales of $30 million, up by 5% year over year, and HealthTronics had sales of $54 million.

With increasing demand for BPH therapy, the company expects to have more sales from high-margin products, since the high demand translates to people willing to spend more for specialized therapy. Overall, the company expects moderate growth in revenue due to declining sales of branded products Opano and Lidoderm. For next year, revenue is expected to be between $2.7 billion to $2.8 billion, with adjusted diluted EPS of $4.25 to $4.55.

On the other hand, Boston Scientific expects revenue of $570 million in 2013 and $700 million by 2017, from the new market that includes BPH and visualization. The company focuses on developing innovative pipeline products to strengthen market share and expand its market. Overall, the company expects sales of $7 billion to $7.2 billion, with adjusted EPS of $0.67 to $0.71.

Though, for C.R. Bard, more than 25% of revenue are coming from urology, it does not have solid potential products in BPH therapy. Given the potential for the BHP market, this seems surprising. However, the company has a solid presence in the international urology market. Recently, Boston Scientific made plans to acquire one of C.R. Bard's businesses. I believe a synergy exists between C.R. Bard and Endo Health whereby the latter can expand its horizons while the former acquires a stronger BPH portfolio.

By performance, C.R. Bard's urology segment (26% of total sales) posted a 10% increase in the international market.

The need for a minimally invasive therapy will drive the BPH treatment market. Laser BPH will be a core growth driver. The global spread of obesity and diabetes will create an upside potential for companies like Endo Health that develop devices and services for several urological diseases.

Three stocks to own forever
Every good investor wants to build that perfect portfolio that they can set and forget forever. Fortunately, it's easier than anyone ever knew. We've uncovered the pillars of such a portfolio today and we're willing to share The Motley Fool's 3 Stocks to Own Forever. Simply stated, we think they're the best stocks for true long-term investors to know about, and you can uncover them for free today, instantly; just click here now.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2660841, ~/Articles/ArticleHandler.aspx, 10/1/2016 12:55:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:02 PM
BCR $224.28 Up +0.54 +0.24%
C.R. Bard CAPS Rating: ****
BSX $23.80 Up +0.50 +2.15%
Boston Scientific CAPS Rating: ***
ENDP $20.15 Down -0.78 -3.73%
Endo International CAPS Rating: ****