AtriCure's Portfolio Strengthened - Analyst Blog

Recently, AtriCure (ATRC) has received a clearance from the US Food and Drug Administration (FDA) for its AtriClip Gillinov-Cosgrove Left Atrial Appendage Exclusion system. The system has been developed for use during surgery treating atrial fibrillation (AF), where the upper chambers of the heart beat rapidly and irregularly. While the initial launch is expected to begin in the US by the month-end, full commercial launch is expected during the third quarter of 2010.

 

AtriCure’s primary product line, accounting for a major part of revenues, is the Isolator Synergy bipolar ablation clamp system – or Isolator system – and related radiofrequency ablation devices. The company also offers a cryoablation product line, which features reusable and disposable cryoablation devices. During the fourth quarter of 2009, AtriCure initiated the European launch of the AtriClip system.

 

We believe a successful commercialization of the AtriClip system, which is to be used in conjunction with other open-heart cardiac procedures, will be able to boost the company’s top line. AtriCure generated revenues of $14 million during the quarter ended March 2010, 2% higher than the year-ago quarter’s $13.7 million.

 

We also note that during May 2010, AtriCure's clinical trial, known as DEEP AF, was conditionally approved by the FDA. The trial has been designed to evaluate the safety and effectiveness of AtriCure's minimally invasive products combined with catheter mapping and ablation technologies to treat patients with persistent AF. The 30-patient trial will be conducted at five US medical centers and enrollment is expected to begin during the third quarter of 2010.

 

Although AtriCure's Isolator system has been received well in the market in the past few years, the company is highly dependent on the revenues it generates. We believe additional product approval is significant, which will enable the company to diversify its product portfolio.