Purchasing American Medical Systems' products could make a few of us blush, but they are important nonetheless. AMS is a leading maker of urological devices, including products to help with erectile dysfunction such as inflatable penile implants, as well as urinary incontinence devices for men and women. Its other products treat such conditions as menorrhagia (excessive uterine bleeding), enlarged prostate, and fecal incontinence. AMS has around 80 independent distributors in addition to a global sale and marketing force of about 500 employees. Marketing efforts target urologists, gynecologists, and colorectal surgeons. The company was acquired by Endo Pharmaceuticals in 2011 for $2.9 billion.
Change in Company Type
After being acquired in 2011, AMS became a subsidiary of Endo Pharmaceuticals.
With AMS' portfolio added to its own, Endo became better positioned to offer a diverse range of health care products, reducing each single company's reliance on a specific product line for it income.
AMS products for women include solutions for urinary continence, female fecal continence, and vaginal prolapse treatments. Men's products include solutions for erectile restoration, urinary continence, prostate health, fecal continence, urethral stricture, and DESD treatment.
Key AMS products include the Elevate anterior and posterior systems for pelvic floor repair; the AMS 800, an artificial sphincter product that treats male incontinence; and, the GreenLight laser therapy products used to treat an enlarged prostate also known as benign prostate hyperplasia (hence the division name of BPH).
The company has offices or affiliates in about 60 countries.
Most of AMS' development activity occurs at its California and Minnesota facilities, but it also works with research hospitals and universities in the US and abroad.
In 2010 it consolidated its laser therapy manufacturing capacity by moving its Arizona operations to California. It made moves to increase efficiencies even further in 2011 by using a third-party warehouse and distribution center for certain finished goods in the US.
Sales and Marketing
Though most people don't want to talk or even think about the products AMS sells, plenty of people need them. Most of AMS' products are bought by hospitals that are dependent upon reimbursement from third-party payers such as Medicare, Medicaid, and managed care and private care plans.
Because of that, AMS is indirectly affected by changes to reimbursement levels, because as they drop, hospitals' income drops, and they delay purchases of AMS' products.
AMS spends a certain amount of its income each year to educate the industry about its products and why they are needed.
AMS posted more than $500 million in annual sales in 2009 and 2010. Before being acquired in 2011 the company's sales had been increasing year-over-year.
On average sales of men's health products account for about 45% of AMS' income, women's health contribut about 35%, and BPH therapy (AMS' prostate treatment line) account for the remaining 20% of sales.
Crucial to AMS' growth strategy is new product development. Many of AMS' developments are next-generation versions of best-sellers that were remade with additional features for ease-of-use or comfort. – less