Epilepsy devicemaker Cyberonics reported 19% growth in U.S. epilepsy sales to $30.7 million for the first quarter of 2010 (ended July 24).

Cyberonics makes the VNS Therapy system, a pacemaker-like implantable device that sends mild electrical impulses through a lead to the left vagus nerve to reduce seizures in patients resistant to drug therapy.

An 8% increase in the number of VNS units sold, plus a 13% rise in the average selling price over the prior-year quarter, contributed to the revenue growth. The company placed 1,665 units in the U.S. during the quarter, at an average selling price of $15,727 per unit, Cyberonics CEO Daniel J. Moore said in an Aug. 20 earnings call.

International epilepsy sales grew 5% to $7.2 million, and net global revenues from the business were $38 million, up 16%. Cyberonics is aiming to increase its international presence in countries like China and Japan, where it is awaiting approval for VNS Therapy.

Cyberonics intends to double its research and development budget for epilepsy in fiscal 2010, Moore said. The firm has been ramping up R&D spend over the past two years as it focuses on epilepsy and places less emphasis on VNS Therapy for treatment-resistant depression (¹ Also see "Cyberonics Refocuses Sales And Marketing Effort On Epilepsy Treatment" - Medtech Insight, 18 June, 2007.).

"We have active programs for generators, leads, other hardware and software, including new treatment parameters," Moore noted.

The firm is investigating "multiple approaches to solving this very difficult area of seizure detection and seizure protection," he continued. "We're using both the cardiac signal and EEG [electroencephalography]. We expect to develop systems that will consist of external devices, implanted devices and combination devices, as well."

Sales in the company's depression business plummeted 74% to $188,000. The firm recently reported FDA has approved a plan to reduce the number of patients in its D-21 post-approval study of VNS Therapy for depression; the trial is now expected to wrap up in March 2010 (² Also see "Research In Brief" - Medtech Insight, 3 August, 2009.).

- Brooke McManus ( ³ b.mcmanus@elsevier.com )

Cyberonics Q1 Epilepsy Sales Up 16%; Firm Continues To Ramp Up R&D Spend

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