Fastest-Growing Public Companies 2005 to 2008

Orange County Business Journal, Oct 20-Oct 26, 2008

The Powerlink system has been available in Europe since 1999 and received FDA approval for use in the U.S. in 2004. The company also sells it in South America and Japan.

Despite Endologix 's heady growth, the company isn't profitable.

For the year ended June, the company lost $14 million, up from a loss of $17 million a year earlier.

The company isn't yet cash flow positive, although it projects that it will be in the first half of 2009, according to McDermott.

"We believe we've got sufficient liquidity to get to cash flow positive without any additional equity financing," McDermott said.

For the six months ended June, more than half of the company's operating expenses were for marketing and sales. The company sells primarily to physicians, usually vascular surgeons.

"Over the last few years, we've built a direct sales force in the U.S.," McDermott said.

The company has about 50 direct sales representatives, he said.

It also has some new products in its pipeline. It is expecting to launch a device to treat specific aneurisms, according to McDermott.

It also will introduce a product that "makes the delivery of the Powerlink graft much easier and more intuitive," he said.

McDermott joined the company in May, replacing Paul McCormick, who stayed on as a director.

Prior to starting at Endologix, McDermott was president of Bard Peripheral Vascular, a division of New Jersey medical device maker CR. Bard Inc.

McDermott said he was attracted to the job because Endologix has a "great technology platform with good long-term clinical results and a lot of growth opportunity."

The company had a recent market value of about $90 million.

The stock has sagged during the past year, dropping as much as 65%.

Not including the recent stock market crash, Endologix 's stock has decreased about 35% in the past year.

The company has 126 employees in Orange County, a 20% increase from a year ago. Companywide, Endologix has 188 employees, an 18% jump.

The company started as Cardiovascular Dynamics Inc. In 1999, it combined with Radiance Medical Systems Inc., which then combined with then-private Endologix.

Michael Henson, a well-known OC device investor, was involved with both Radiance and Endologix.

NO. 7

AVANIR PHARMACEUTICALS INC.

VITA REED

THE NUMBERS

Three-year growth: 369%

12-month sales through June: $12.9 million

Yearly loss: $100,000

Recent market value: $39 million

Employees: 21, 17 in OC

Company: drug maker

Avanir Pharmaceuticals Inc. considers itself a development-stage drug maker but has been able to boost its revenue during the past three years through licensing and research deals.

Aliso Viejo-based Avanir, which is working on a drug to treat a neurological disorder, came in at No. 7 on this year's list of fastest-growing public companies here.

Avanir posted 369% revenue growth during the three years ended June 30. The company went from $2.8 million in 2005 revenue to $12.9 million in the 12 months ended in June.

Avanir, through a spokeswoman, declined a request to talk about its growth.

The company's grown its revenue even though it sold off a product - schizophrenia drug FazaClo - in 2007. Avanir sold FazaClo to Ireland's Azur Pharma Ltd. for $42 million.