CIBC World Keeps 'Buy' on INAMED

Analyst John Calcagnini says the company's newly approved obesity treatment could garner annual sales of over $100 million

CIBC World reiterated its buy rating on INAMED Corp. (IMDS ). INAMED received FDA approval for its Lap-Band surgical devices for treating severe obesity.

Analyst John Calcagnini says that while the training requirements as specified in the device's label may limit the uptake originally, he believes Lap-Band could have a major positive impact over next 18 months. He notes the domestic severe obesity market is very large, affecting over 11 million Americans. He also notes there's no other approved minimally invasive obesity device. Calcagnini conservatively estimates the device's domestic opportunity to be over $100 million annually. He maintains his $1.35 2001 EPS, and keeps the $1.65 2002 estimates. He has a $33 target.

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