Endologix, a California-based developer and marketer of innovative treatments for aortic disorders, has announced that John McDermott is stepping down as the company’s Chief Executive Officer (CEO). McDermott will remain in his current role until a successor is found.
“His leadership has been critical in positioning Endologix as an innovative market leader and in bringing novel solutions to doctors and patients across the globe”, said Daniel T Lemaitre, chairman of the Board of Endologix, thanking McDermott “for his remarkable passion and dedication to the company”.
In a separate announcement, the company also released its financial results for the fourth quarter and fiscal year ended December 31, 2017, stating the 2018 revenue is anticipated to be in the range of US$170 million to US$180 million, representing a decrease of 1% to 6% compared to 2017. Endologix anticipates 2018 GAAP loss in the range of US$(0.89) to US$(0.95) per share. The decrease continues from 2017, in which the company reported a net loss of US$66.4 million, or US$(0.80) per share, compared to a net loss of US$154.7 million, or US$(1.91) per share for the year ended December 31, 2016.
Addressing his stepping down as CEO, McDermott said, “Despite the business challenges over the past couple of years, I am confident that Endologix has a bright future. Our vision is clear, the value proposition is compelling, and our pipeline of new products positions us for significant long-term growth. I remain deeply committed to our employees, physicians, and patients and will do whatever I can to support an effective leadership transition.”
“While our top-line performance during the fourth quarter finished at the low end of our guidance, we were pleased to have achieved expanded gross margins and to have further lowered our operating expenses,” McDermott said. “Subsequent to the quarter end, we completed patient enrollment in the ELEVATE IDE clinical study. We plan to file regulatory submissions in the third quarter of 2018 and currently anticipate potential approval of the Alto device in both the US and European markets in 2019. The Alto device incorporates several design enhancements that are intended to simplify the procedure and enable the system to treat a wider range of AAA anatomies than Ovation iX. We also welcomed Greg Morrow as our chief marketing officer, and we believe that under his leadership our team will be able to further strengthen our brand value proposition and maximise the impact of our innovative new product pipeline. Looking forward, we are confident that we have sufficient resources to drive innovation and position the company for future growth in its addressable markets.”
