Hansen Medical (Nasdaq: HNSN) manufactures catheters and other flexible robotics used in catheter-based interventional medical procedures. The company's main robotic catheter product is used to treat irregular heart rhythms; it is developing additional products that will be used in targeted treatment of vascular disease. The company also has agreements with Philips to license its technology for application in other medical fields.
The company's only product approved in both the US and Europe is the Sensei robotic catheter system used in the treatment of irregular heart rhythms. The system retails for approximately $545,000 and catheter units cost $1,600. The company's vascular system was recently approved for use in Europe but hasn't yet been approved by the FDA.
In 2010 the company generated revenues of $16.6 million, down 25% from the previous year. The company has not yet generated any net income, losing $37.9 million in 2010, however this was 47% less than the amount lost in 2009. The company sold only 12 Sensei units in 2010 compared to 26 unites in 2009.
Physicians are continually finding new and innovative procedures that can be performed via catheter, however the basic technology for delivering the catheter to the targeted area hasn't seen much development. Hansen Medical's robotic system helps physicians guide catheters to the correct spot with greater control of the device. Atrial fibrillation, treated by the Sensei system, is the most common heart arrhythmia and tens of thousands of procedures are performed each year. Hansen Medical's future depends on the continued growth of catheter-based procedures and increased adoption of its devices. There are nearly two million vascular procedures done each year and the company's new vascular system product will be able to address at least a third of these procedures.
From 2009 to 2010, the average selling price of Hansen Medical's Sensei system dropped by $16,000 and the total number of units sold fell from 26 to 12. Both domestic and international sales of Sensei units fell by more than 50%. The reduction in both sales and selling price reflects a broader worldwide trend of governments trying to rein in runaway healthcare costs.
Hansen Medical faces stiff competition from many other companies that manufacture and sell medical devices used in catheter-based procedures for heart arrhythmias and vascular diseases.