Did you see this story? A recent shopper at Motley Fool Inside Value pick Home Depot (NYSE:HD) was literally glued to his seat. And at first glance, I admit I had to chuckle, but after recently being stuck in a vehicle for 13 hours with cramped legs (and thus, restricted blood flow), I reflected back on this poor fella with much greater sympathy.
So by now, you're probably thinking I've lost it. But hold on. There's a valuable point here -- your vascular system (which conducts the flow of blood through your body's arteries and veins) is more important than you think. Let's face it -- your vascular system is your lifeline, providing essentials like nutrients and oxygen to all of your important pieces and parts. And with a population that's aging, increasingly obese, and getting less exercise, makers of vascular therapies are bound to prosper in the future.
With the Street focusing on some hefty players in the medical device arena, such as Johnson & Johnson (NYSE:JNJ), Medtronic (NYSE:MDT), and Guidant (NYSE:GDT), I strayed off the beaten path, following the heels of Vascular Solutions (NASDAQ:VASC), a small medical-device company that concentrates on finding opportunities within interventional cardiology and radiology. Its biggest product lines include Vari-Lase (an endovenous laser treatment for varicose veins), the D-Stat Dry family for bleeding, and Pronto extraction catheters for removing soft thrombus.
How's Vascular Solutions doing? Well, it appears the company's products are flowing smoothly. Vascular Solutions recently announced that its quarterly net sales set a seventh consecutive record -- increasing 44% to $8.6 million from $6 million in the third quarter of 2004. Net income was $60,000, or $0.00 per share, versus a net loss of $0.03 per share during the same time period of 2004. Net sales for the first nine months have been stellar, growing from $15.7 million in 2004 to $23.9 million this year.
More than 80% of net sales have come from new products that have been launched within the past two years. The D-Stat Dry products continue to grab market share and deliver a 79% reorder rate, boosting sales 8% from last quarter. The Pronto line, expected to be the fastest-growing segment in 2006, increased net sales 3% from the second quarter and was 94% higher than in the third quarter of 2004. Net sales for Vari-Lase increased 62% compared with the third quarter of 2004 and is becoming the therapy of choice for treating varicose veins.
To check out other tidbits, like increasing profitability, improving margins, and new product launches for 2006, click here.
Although Vascular Solutions looks expensive with a forward P/E of around 50, its products have driven the company's 260% revenue growth over the past five years. If this kind of growth remains sustainable, Vascular Solutions might just get your investing blood flowing.
To channel your thoughts elsewhere, click below:
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Fool contributor M.D. Mitchell is down the street at the local junkyard looking for some good trash. He owns none of the above companies.
