Angiodynamics Inc. (ANGO), the maker of devices for minimally invasive surgery, named Joseph DeVivo president and chief executive officer, giving him the job of reviving sales of catheters and other hospital products.
DeVivo, 44, a former executive with London-based medical- device maker Smith & Nephew Plc (SNN), will take the helm of Latham, New York-based Angiodynamics on Sept. 7, the company said. He was CEO of RITA Medical Systems in 2006 when Angiodynamics bought the company. DeVivo will replace Scott Solano, Angiodynamics’s interim CEO since June 14 when Jan Keltjens resigned.
Angiodynamics’s net income plunged 34 percent to $8.12 million in the fiscal year ended May 31 as sales of its minimally invasive devices used in surgery, during dialysis and to treat cancer and varicose veins stalled at $216 million. The company lost the exclusive U.S. distribution rights to a device used to block blood flow to tumors, called LC bead, after BTC Plc bought the manufacturer, Biocompatibles International Plc.
“My objective is to return the company to above market growth,” DeVivo said in a telephone interview. “Angiodynamics has a tremendous amount of value and great technology, and we have the opportunity to extract that value and get back to greater growth.”
Angiodynamics gained 19 cents, or 1.4 percent, to $14.11 in Nasdaq Stock Market trading yesterday. The shares have fallen 11 percent in the past 12 months before today.
Jason Mills, an analyst with Canaccord Adams Inc. in San Francisco, raised his rating on Angiodynamics to buy from hold on July 15, saying most of the bad news was behind the company.
“Three major shoes have dropped recently: resignation of its CEO, loss of LC beads business and supply chain issues in vascular,” Mills wrote. “We think positive news will dominate the next 12 months,” including the appointment of a new chief executive and possible acquisitions to bolster growth, he said.
DeVivo said he plans to give more attention to parts of the business that have been overlooked recently, to be “creative” when it comes to business development and to look for growth opportunities through acquisitions and licensing agreements.
“We have a very strong balance sheet and I think our investors would like us to put that balance sheet to use to improve the return we’re seeing today,” he said. “There are opportunities in the vascular as well as oncology business to bring on new technology through licensing and acquisition.”
DeVivo joined Smith & Nephew in 2007 and most recently served as global president of the company’s orthopedics group. Smith & Newphew’s orthopedics business had the fastest growth rate of all the company’s business sections during the most recent quarter, said Angiodynamics Chairman Vincent Bucci.
“We are thrilled to have recruited the architect of this growth,” Bucci said in a statement.
DeVivo has a Bachelor of Science degree in business administration from the University of Richmond’s E. Clairborne Robins School of Business.
Solano, the interim CEO, will return to his job as Angiodynamics’s senior vice president and chief technology officer, the company said.
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