AMMD Wins New Contract

American Medical Systems Holdings, Inc. (AMMD - Analyst Report) recently won a new contract to supply three of its female stress urinary incontinence (SUI) treatment devices, Monarc Subfascial Hammock, MiniArc Single-Incision Sling, and SPARC Sling System, in the U.K. The contract was awarded by the public healthcare provider of the U.K. , the National Healthcare Services (NHS), as part of its multiple-awardees contract. Financial details of the contract are yet to be disclosed. 

The devices will be available to women treated in any NHS hospital in the region and supported by the Normanton centre, U.K. The Monarc device is one of the leading transobturator slings that bring relief to women suffering from SUI. It has been estimated that more than 600,000 women have been implanted with the Monarc, MiniArc and SPARC systems globally. 

We think that the new contract is a shot in the arm for American Medical Systems as it will essentially boost the company’s international revenues. For the second quarter of fiscal 2009, international sales accounted for approximately 29% of total sales. 

Headquartered in Minnetonka , Minnesota , American Medical Systems is a world leader in medical devices and procedures used to treat erectile dysfunction and other men's and women's health problems. Other men's health problems include incontinence, benign prostate hyperplasia, and stricture. Women's health problems include menorrhagia (excessive bleeding during menstruation), incontinence, and other pelvic floor defects. 

The company competes with Johnson & Johnson (JNJ - Analyst Report) and Boston Scientific Corporation (BSX - Analyst Report).