By Paul Nouri, CFP:
Lumenis (NASDAQ:LMNS) is a power-based medical device company that participates in three primary end markets: Surgical (40% of sales), aesthetic (37% of sales) and ophthalmic (23% of sales).
Within surgical, the company’s main product lines are for a variety of urological applications including for treatment of benign prostatic hyperplasia (BPH), urinary lithotripsy and for the treatment of urinary and kidney stones. BPH is a common condition in men over 50, leading to 1 million procedures annually in the U.S. The current treatments for BPH that dominate the space (TURP and Greenlight PVP Laser) are currently efficacious, however, patients experience common side effects including incontinence and impotence. Lumenis’ Holmium laser treatment, with a current 7% share of the BPH market, has been shown to be more effective in reducing re-operating rates (1% for Holmium laser, 10% TURP, 50% Greenlight PVP). While the Holmium Laser has become the standard of care in