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CryoLife: Frozen Favorite
09/20/2016 7:00 am EST
Our latest featured stock is a leader in medical device manufacturing and distribution and in the processing and distribution of implantable human tissues for use in cardiac and vascular surgeries, explains money manager Jim Oberweis of Oberweis Asset Management.
CryoLife, Inc. (CRY) makes BioGlue and BioForm (about 67% of revenue), which are biomaterials used to close wounds after surgery; PerClot, which is used to control bleeding; and Cardio-Genesis, which is a laser used in the treatment of angina. cryogenics.
BioGlue represented about 30% of sales in 2015. Cardiac and vascular preservation services are about 33% of sales and include dissection, procession, preservation, and storage of human tissues and valves used in cardiac and vascular applications.
In January 2016, the company acquired On-X Technologies for $130 million in cash. On-X develops mechanical heart valves including indications for aortic and mitral heart valves; the aortic valve is the only mechanical valve approved by the FDA.
The company markets its products and preservation services primarily to physicians, and distributes its products through its direct sales team to hospitals and other healthcare facilities.
Beyond organic and acquisition growth, management has driven efficiencies resulting in year/ year gross margin improvement of 900 basis points in the first quarter.
In the company’s latest reported second quarter, sales increased approximately 33% to $47.1 million from $35.5 million in the second quarter of last year.
CryoLife reported earnings per share of $0.13 in the latest reported second quarter versus $0.04 in the same quarter of last year.
Clients of Oberweis Asset Management own approximately 52,000 shares. These shares may be appropriate for risk-oriented investors.
By Jim Oberweis, Money Manager at Oberweis Asset Management
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