Intersect ENT, Inc. (XENT, Financial) sells a drug coated device (Propel) that is implanted in patients that have had surgery for chronic sinusitis. Shares declined in the quarter after Intersect ENT substantially lowered guidance for revenue growth. It is likely that management’s explanation of sales force growing pains is the true culprit. But we have also grown concerned that adoption has slowed due to the expense of the device versus using “off label” techniques that are not FDA approved. We continue to like the management team, but we sold our position in the quarter while we assess this issue.
From Baron Discover Fund's fourth quarter 2015 commentary.
