AMMD Starts Implant Registry

Leading pelvic-health devices maker American Medical Systems (AMMD) recently initiated a large-scale global registry of penile prosthetic outcomes. The new registry, dubbed PROPPER (Prospective Registry of Outcomes with Penile Prosthesis for Erectile Restoration), is managed by a crew of eminent urologists looking to better characterize patient satisfaction associated with modern penile prosthetic implants.

The multi-year company-sponsored PROPPER registry, essentially the first-of-its-kind, has been designed to better understand the real-world outcomes of penile implant surgery to treat erectile dysfunction (“ED”). The registry is expected to enroll more than 1,000 ED patients recommended for penile prosthesis by their physicians.

The research, which will initially engage ten sites, will involve  a prospective measure of patient responses by investigating physicians at regular intervals (over a 1-5 year period) using questionnaires and electronic data collection. 

Researchers have identified several key parameters for the study, including device effectiveness, durability, complications, patient satisfaction and quality of life. Results from the PROPPER registry (with the initial outcomes) will be publicized in 2013.

American Medical is a world leader in manufacturing medical devices and procedures for treating health problems of both men and women. The company competes with larger players like Boston Scientific (BSX - Analyst Report), Johnson & Johnson (JNJ - Analyst Report) and C.R. Bard (BCR - Analyst Report).

American Medical derives nearly half of its revenues from its Men’s Health business, which comprises erectile restoration, male continence and prostate treatments. Revenues from Men’s Health continue to be boosted by higher demand for the male continence and erectile restoration product lines.

While American Medical has a dominant position in both male and female incontinence markets, it is exposed to a significant reimbursement risk and its European markets are yet to fully recover from the macroeconomic softness.

American Medical is slated to be acquired by specialty healthcare solutions company Endo Pharmaceuticals (ENDP - Analyst Report) in the third quarter of 2011. Under the deal, announced in April 2011, Endo Pharmaceuticals will buy the company for $2.9 billion or $30.00 per share in cash. The consideration includes the assumption of $312 million of debt.

The transaction has been approved by the Boards of both companies and is subject to the approval of American Medical’s shareholders, antitrust clearance and attainment of other closing conditions. Currently, we have a Neutral rating on American Medical. 

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