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John McDermottOkay, thank you. So, Endologix, for those of you who aren’t familiar with the company is a medical device business. We make a device to treat abdominal aortic aneurisms. That is a leading cause of death in the United States, particularly for men. The historical way to fix these aneurisms is with an open surgery. There is a new way to fix aneurisms and that is with a percutaneous or through the catheter type of approach, so this less invasive. We were one of the later entrants into this market, have grown very rapidly over the last few years, have a differentiated technology which is capturing share but more interestingly over the last couple of years have invested a considerable amount of our efforts and resource into a new portfolio of devices as that are getting ready to be introduced over the next few years in Europe first and then in the United States. So we have been growing nicely. We grew in the first half about 30%. We have given five year guidance to grow at 20% or better over the next several years. We have just been expanding into Europe and have very promising future. So it's an exciting company with a lot of growth potential. Question-and-Answer Session Unidentified Analyst Great job, thanks. So you were one of the reasons why I think Endologix is particularly interesting. Obviously there is a pullback in the stocks past the quarter. In fact, they would have bought you anyway but it is a clear opportunity for investors. Maybe in the sense of star care, there are some people who believe that it was related to Nellix but, frankly, probably it was more related to earnings expectations and guidance there. So maybe walk us through what happened on the quarter specifically.
John McDermottYes, I think there was a pullback in the stock. For those of you, again, who aren’t familiar with it, one of the featured new technologies in the portfolio was a device called Nellix. The current devices today, we treat an aneurism by putting in a tube to isolate the blood flow from the aneurism sack and that has worked pretty well with pretty good results but the problem is you still get, what we call and endo leak. You get leaks around these tubes that require annual CT scans and life time of surveillance for these patients. We have developed a new technology which effectively seals that aneurism sack and there isn’t anything like it. It's been developed for many, many years. We actually bought the company that have been developing it about a year and half ago and integrated some of our technologies. We made a decision just prior to the last call to hold that device back a little bit, make a few final design enhancements before we start our USIDE and our European trial and the effect of that was, instead of getting a CE mark and launching that in Europe around now, it was a limited market release, we will do that in about the middle of next year. I think that was the biggest reason for the change in the stock. Unidentified Analyst Okay, and obviously, we have got a pretty big room here. So if there are questions, please raise them high enough and we will get to them. John, I want to mention another (inaudible) debate that has been out there for several months. Actually in upwards of a year, and just your larger competitor, there really are two competitors in the market. One today, and the one potential in the future.
So, talking about Medtronic and Endurant and Endurant II, with that now in the market place, can we talk as to how the competitive environment in your mind has changed in the last 12 and 24 months, specifically with Endurant and if you think about, and obviously it is much further in the future but with TriVascular, maybe several years in the future, how does the competitive environment for you transform last year and the next two years?Read the rest of this transcript for free on seekingalpha.com