Glaucoma Treatment By Laser Spurs Spectacular Rise Of Ellex
The Age
Thursday April 25, 2002
Shares in eye-surgery equipment maker Ellex Medical Lasers have climbed to record highs after the company announced a new push into treatments for the eye disease glaucoma.
The stock rose three cents to $1.33 after Ellex outlined the deal to make laser equipment for Lumenis in the United States, which would mean the company would be tackling each of the three biggest causes of blindness - cataracts, retinal therapy and glaucoma.
Managing director Peter Rowland said it was difficult to predict market share because glaucoma was a new field for laser technology. But he hoped to sell 50 units in the June half of 2003 and 100 in the December half of that year, with the latter sales possibly worth $5 million.
``Our competitor is drug therapy and that has a lot of problems of side-effects," Mr Rowland said. He said glaucoma affected about 10 per cent of the elderly population of developed countries and pharmaceuticals for the disease represented a $4 billion market a year.
Ellex shares have doubled in value in the past six months, giving the company a $78 million market capitalisation less than a year after it back-door listed on the Australian Stock Exchange.
Under the deal, the equipment will be developed at Ellex's Adelaide site using laser technology patented by Lumenis, but Ellex will keep the intellectual property in the product. Mr Rowland said that after one year Ellex would be able to market a version under its own Laserex brand outside the United States.
© 2002 The Age