Cryolife's Numbers Weren't Strong, But the Conference Call Tone Was
BY ROBIN R. YOUNG CFA, MARCH 1, 2004
Allograft tissue processing revenues may be down ($30.8 million in 2003 vs. $55.4 million in 2002) but with BioGlue revenues up 33% to reach $27.8 million and an infusion of $20 million in cash, CryoLife's management had a definite spring in their step in this quarter's conference call.
“No restrictions remaining” was the word from CEO Steven G. Anderson, meaning that the FDA was no longer restricting the firm's ability to process and ship human tissues. That, in turn, was the basis for management's guidance that revenues in 2004 could be expected to rise 12-18% to $66-70 million.
The company's stance vis a vis the FDA appears to be stiffening. On more than one issue, the company stated that it disagrees with the FDA's ruling or interpretation of a regulatory requirement. CryoLife's comments were made respectfully but pointedly. Anderson stated that the company is seeking a couple meetings with the FDA to argue its case.
Finally, CEO Anderson talked at length about the company's new product pipeline and in particular, new applications for the BioGlue technology including, interestingly, a cardiovascular stent.
With new products and a more confident attitude toward the FDA, CryoLife gave the clear signal that they see a light at the end of their tunnel.
