EDAP TMS’ product lines for HIFU and ESWL, market and business strategy
EDAP TMS is well positioned on the HIFU market with Ablatherm® for the treatment of prostate cancer and in the ESWL market with the Sonolith® range for the treatment of urinary tract stones. These two technologies are based on ultra-sound waves but their markets and contexts are distinct, and they therefore require specific marketing strategies.
The Company's business strategy is to capitalize on its expertise in therapeutic ultrasound and its position in urology to achieve long-term growth as a leader in the development, production, marketing and distribution of minimally-invasive medical devices for urological and other indications, primarily using HIFU and shock wave technologies.
Ablatherm® HIFU market and marketing strategy
Ablatherm® Robotic HIFU® device
EDAP TMS currently develops and markets devices for the minimally invasive removal of certain types of localized tumors using HIFU technology. HIFU enables the surgeon to destroy a well-defined area of diseased tissue without damaging surrounding tissue and organs. It therefore eliminates the need for incisions, transfusions, general anesthesia and their resulting complications.
Ablatherm® HIFU (High Intensity Focused Ultrasound) for the treatment of localized prostate cancer was jointly developed by EDAP TMS and INSERM (French Institute for Medical Research) in the early 1990s and received CE marking in 2000.
The technology is now available on 5 continents and Ablatherm® Robotic HIFU® is currently under phase II/III FDA (Food and Drug Administration) clinical trial in the USA.
The Company believes that minimally-invasive treatments using HIFU could provide an alternative to current invasive therapies on the basis of reduced cost and minimized side effects for a number of different indications.
For full information about Ablatherm® HIFU, click here to access the Ablatherm® HIFU products and services section.
Provide minimally-invasive solutions to prostate cancer using HIFU.
Building upon its established position in the ESWL market, the Company is striving to become a leading provider of minimally-invasive treatment alternatives for prostate cancer. Epidemiologic data show that prostate cancer incidence will increase in developed countries as the male population ages and screening becomes more widespread.
Furthermore, HIFU is gaining acceptance as a reasonable alternative to surgery, external beam radiotherapy, brachytherapy and cryotherapy for the treatment of organ-confined prostate cancer without the cost, in-patient hospitalization and adverse side effects associated with those therapies.
Achieve long-term growth by expanding HIFU applications beyond urology.
The Company's long-term growth strategy is to apply its HIFU technology toward the minimally-invasive treatment of indications beyond urological disorders.
Sonolith® market and marketing strategy
Sonolith® Praktis, Sonolith® i-sys & Sonolith® i-move
The Company develops and markets Sonolith® devices for the treatment of urinary tract stones (kidney, bladder and ureteral stones) using the patented Electroconductive technology, the latest innovation in shock wave therapy.
External shock wave lithotripters are widely used for the minimally-invasive treatment of urinary lithiasis and are designed to fragment urinary stones externally, thereby allowing them to discharge naturally.
Extracorporeal shock-wave lithotripsy (ESWL) has become the gold standard treatment for urinary tract stones. ESWL consists of fragmenting calculi within the body using extra-corporeal shockwaves without any surgery. The Company believes that the market for lithotripters includes both buyers looking for a sophisticated, top-of-the-range machines, generally hospitals and large urology clinics, and buyers looking for simpler, flexible and less expensive lithotripters, typically smaller clinics.
The Company's ESWL customers are located worldwide and have historically been mainly large hospitals and urology clinics and research institutions. In order to increase its penetration of the market segment of smaller hospitals and outpatient clinics, the Company developed the Sonolith® Praktis, a compact and modular lithotripter using Electroconductive technology.
For full information about the Sonolith® range, click here to access the Sonolith® products and services section.
The Company believes that after a period of rapid growth in the mid-1980s and early 1990s, the market for lithotripters is now mature and has become primarily a replacement and service and maintenance market.
Moreover, companies with large installed bases of lithotripters will be the most successful in the replacement market. Consequently, the Company intends to capitalize on its share of the installed base of lithotripters to gain a significant position in the replacement market for those machines.
The Company offers the Sonolith® Praktis and Sonolith® i-move and to mid-size hospitals, while the Sonolith® i-sys is offered to large hospitals which can afford a fully dedicated and integrated lithotripter.
The disposable parts (consumables) of EDAP TMS lithotripters include the patented electrodes of the Sonolith® line, which need to be replaced approximately every ten treatments. These parts incorporate key proprietary technologies, and the Company has retained sole marketing rights for those parts.
The ESWL market is characterized by intense price competition among manufacturers leading to a decrease of the average lithotripter unit price, and the Company expects this trend to continue. The Company's major competitors in developed countries are Dornier, Siemens and Storz.
Capitalize on its current ESWL installed base and distribution platform in urology
The Company's long term growth strategy is to expand its leadership in the development, production, marketing and distribution of minimally-invasive devices, based on its already extensive installed base of lithotripters, and to offer its established distribution platform in urology to other developers of medical technologies.
Provide manufacturing solutions to other developers of medical technologies
Building upon its established position in the high-tech medical devices market, the company's strategy is to become a leading provider of manufacturing alternatives to other developers of medical technologies.