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AngioDynamics Inc. (ANGO - Analyst Report) has enrolled the first patient in a multi-center study evaluating the efficiency of the NanoKnife System for ablation of prostrate cancer. The clinical trial is being conducted by the Clinical Research Office of the Endourological Society (CROES) at the Academic Medical Center in Amsterdam.

“The Safety and Efficacy of Irreversible Electroporation (IRE) for the Ablation of Prostate Cancer Assessed by Procedural Related Side Effects and Post Prostatectomy Histology: A Prospective Human In-Vivo Study” intends to evaluate the safety, efficacy and patient satisfaction of AngioDynamics’ flagship NanoKnife offering in treating prostrate cancer. The study will enroll 16 eligible patients who will be treated with the NanoKnife System roughly a month before prostatectomy. On successful completion of this study, CROES will conduct a second study with 200 patients.

Researchers in the urology field have been increasingly analyzing the effectiveness of focal ablation for the treatment of low-risk prostrate cancer in a minimally invasive manner. We are encouraged by AngioDynamics’ efforts to invest in clinical trials to analyze the potential of the NanoKnife System. The company has invested $26.3 million on research & development (R&D) in fiscal 2013.

The N.Y.-based therapeutic and diagnostic devices maker is conducting similar studies in the U.S. where institutes such as the University of Miami have shown interest in conducting a study on the NanoKnife upon approval from the Institutional Review Board (IRB). Moreover, the U.S. FDA has also cleared an Investigational Device Exemption (IDE) recently to begin a clinical trial of the product for the ablation of focal prostate cancer. The company plans to start patient enrollment in the second quarter of fiscal 2014, which ends on Nov 30, 2013.

AngioDynamics should continue to benefit from the ongoing shift from open surgery to less invasive interventional procedures. Despite the near-term operational glitches, the company has the ability to grow in the long term on the back of higher international sales, new products, acquisitions, as well as operational synergies from its cost saving measures.

ANGO has a Zacks Rank #3 (Hold). Medical stocks such as Cyberonics (CYBX - Analyst Report), Given Imaging and Luminex (LMNX - Analyst Report) are worth considering. All these stocks have a Zacks Rank #2 (Buy).

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