Power Medical Interventions Inc fka PMII (PMII)

[AtHomeDad2]

William Blair & Company Initiates Coverage of Power Medical Interventions, Inc. With Outperform Rating
BUSINESS WIRE
Posted: 2008-01-04 12:17:50
CHICAGO--(BUSINESS WIRE)----William Blair & Company initiated research coverage of Power Medical Interventions, Inc. (Nasdaq: PMII) ($13.57) with an Outperform rating and an Aggressive Growth company profile. Power Medical Interventions (PMI) develops, manufactures, and markets power actuated cutters and staplers used in a variety of open and endoscopic surgical procedures. After five years selling a family of tethered, console-powered products, PMI recently launched the i60 articulating endoscopic linear cutter, the first of what should be several versions of the company's unique handheld staplers and cutters to be rolled out over the course of 2008.

Analyst Ben Andrew estimated the company would earn revenue of $30 million (up 249%) in 2008, with a loss per share of $1.52, and revenue of $70 million (up 133%) in 2009, with a loss per share of $0.19.

"Though we anticipate some uncertainty in the near-term quarterly results as the company is just rolling out the i60--and the initial pace of physician conversion is difficult to predict--we believe that the company's unique handheld, powered technology will ultimately be well received by surgeons, leading to robust top-line growth over the next couple years," Andrew said. "We believe this new system offers physicians meaningful improvements over traditional devices and manual suturing, including ease of deployment, repeatability, and an improved form factor that simply feels good in the hand."

Andrew continued, "Although the i60 can be used in multiple surgical disciplines, PMI will initially target bariatric, colorectal, and thoracic procedures. Eventually, we look for Power Medical to broaden the application of its i60 system to include gastroesophageal reflux disease and left atrial appendage closure procedures, which should represent a sizeable additional opportunity for the company in the coming years. Further, the company is in the late stages of product development for a suite of new devices for use in natural orifice transluminal endoscopic surgery (NOTES). NOTES is generally viewed as the next frontier in surgery, as it is even less invasive than endoscopic or laparoscopic approaches, and has drawn considerable interest from the physician community."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1311&depID=4

Additional information is available upon request.

William Blair & Company, L.L.C.Tony [e-mail]