Cyberonics: Nearly Half-way to the Summit, Fueled by Positive Data and Boston Scientific's investment
This article was originally published in Start Up
Executive Summary
Cyberonics, ever an unpredictable company, has improved its status with investors. In June, Boston Scientific Corp. purchased 11% of Cyberonics' shares for $50 million. The move buttressed public perception of the value of Cyberonics' technology, a pacemaker-like device that is inserted into a patient's chest and stimulates the vagus nerve to treat epilepsy and, the company hopes, depression. A month later, Cyberonics announced that results of a revised study showed clinically significant improvement in 30% of treated depression patients. The numbers look particularly good because severe depression -a $1 billion opportunity, according to the company--is extremely tough to treat. Just as important for the future, the company has buttressed its management ranks with experienced hires from outside the company, has reorganized its sales team, expanded its national accounts group, and consolidated its sales and service organizations. These changes will not only increase epilepsy sales but also, the company expects, lay a foundation for launch of the depression product.