ANGO - Why Shares of AngioDynamics Rose Friday
2023-06-09 14:56:00 ET
Shares of AngioDynamics (NASDAQ: ANGO) were up more than 8% Friday afternoon after rising as much as 9.1% on the news the medical technology company had sold some of its assets for $100 million. The stock is still down more than 21% so far this year.
AngioDynamics makes vascular and oncology medical devices that are used by interventional radiologists, interventional cardiologists, surgeons, and other physicians for the minimally invasive diagnosis and treatment of cancer and peripheral vascular disease. On Thursday, after the markets closed, it reported that it had wrapped up the sale of its dialysis product portfolio and its BioSentry tract sealant system biopsy product to Merid Medical Systems for $100 million in cash. AngioDynamics said the combined portfolio brought in $32 million in sales in fiscal 2023. The healthcare company said it will use the funds toward developing new strategies and eliminating debt. It has said it plans to launch new indications to its NanoKnife System and add to its thrombectomy and pulmonary embolism portfolio.
AngioDynamics said the company, counting the recently closed deal, expects revenue of between $338 million to $339 million this fiscal year. That's actually below earlier estimates, but the ability to trim debt was viewed as the most positive aspect of the deal. In the third quarter, the company reported revenue of $80.7 million, down 9%, year over year, but its net losses increased to $9.5 million compared to a net loss of $5 million in the same period a year ago. The company also said it had $49.5 million in long-term debt, but that now can be wiped out.
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Why Shares of AngioDynamics Rose Friday