October 4, 2007


Inside Wall Street
Safer Surgery With Stereotaxis

By Gene Marcial

Stereotaxis (STXS ) is in neither stereos nor taxicabs. It makes a computerized magnetically controlled navigation system that guides devices used in minimally invasive cardiac arrhythmia surgery. It has partnered with Siemens (SI ), Philips (PHG ), and Johnson & Johnson (JNJ ) to provide the components used with the Stereotaxis system. The system permits more complex procedures, using images to steer catheters and guidewires through the blood vessels and heart chambers. This is achieved by means of computer-controlled magnetic fields. The procedure takes less time and reduces a patient's exposure to X-rays. Stereotaxis wants to make its system standard in treatment of coronary diseases and irregular heartbeat, says Herman Saftlas of Standard & Poor's (MHP ), who rates the stock a buy, in part because of its order backlog of $55 million as of June 30. The stock has leaped from 10 in January to 14.70. Mimi Pham of HSBC Securities (HBC ), who rates the stock overweight, has a 12-month target of 18. She says Stereotaxis benefits from the growth of new procedures for atrial fibrillation. More than 10,000 procedures have been performed using Stereotaxis, says CEO Bevil Hogg.