Two years ago, OmniSonics, a small medical device firm with a promising application in BPH, ran into a brick wall in discussions with investors; some of that was due to dot-com mania, but investors also evinced distaste for the urology and gynecology markets. A poor industry track record, compounded by reimbursement troubles, cautious physician adopters, and patients sometimes reluctant to seek treatment, had left earlier investors in the space feeling burned. But there's reason to hope that investor skittishness will begin to fade. Not only is the market driven by strong demographics, but also social and cultural taboos are coming down. For all its problems, for many device companies, particularly for large ones, the opportunity in urology and gynecology may soon become too attractive to turn down.
by David Cassak
You forgive OmniSonics Medical Technologies Inc. CEO Robert A. Rabiner for his satisfied smile when he tells you that his company's latest office expansion was in a space vacated...
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