While the rest of the market looks like Pompeii after Mount Vesuvius erupted, Volcano Corp. (Nasdaq:VOLC) has not buried its shareholders. Instead, the medical device maker, which manufactures intravascular ultrasound (IVUS) and functional measurement (FM) products for the diagnosis and treatment of vascular and structural heart disease, is growing against all odds.

Volcano is mopping up market share on account of its product differentiation and as the volume of percutaneous coronary interventions (PCIs) and drug-eluting stent (DES) procedures have risen. An augmented sales team and favorable data releases surrounding the value of IVUS have also contributed to an enhanced presence in the market.

The company’s IVUS products have stolen market share and burgeoned by roughly 39% in the second quarter, according to Roth Capital analyst Matt Dolan. This compares with Volcano’s competitor, Boston Scientific, which grew its IVUS business by a measly 7%, and the market’s growth rate of around 20%. “Clearly, Volcano continues to grab market share through its sole focus on IVUS and FM as physicians realize its clinical utility of what we view as a superior product offering,” wrote Dolan. “We remain comfortable with our expectations for sustainable 20% growth in Volcano's IVUS/FM business, with the potential to accelerate growth beyond this level through the introduction of new modalities and further supporting clinical data.”

IVUS system sales galloped 68% and IVUS disposable revenues grew 31% in the second quarter.

For the second quarter ended June 30, 2008, revenues surged 40% to $41.5 million from $29.6 million in the second quarter of 2007. Excluding a charge related to Volcano’s acquisition of Novelis, the company posted net profit of $1.2 million, or $0.02 per share, in the second quarter compared with a net loss of . . .

For access to the full article, you must be a registered member - it's FREE.