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NEW YORK (AP) -- Shares of medical device maker American Medical Systems Holdings Inc. dropped 23 percent during 2007 amid several profit warnings, but Intuitive Surgical Inc. more than tripled, boosted by sales of its da Vinci surgical system. Overall, the medical device space traded mixed during the year. Investors worried the slowdown in consumer spending would take a toll on demand for cosmetic procedures and subsequently on some aesthetic product makers. Other device makers, however, saw revenue increase as new technology for non-cosmetic procedures gained traction. Minnetonka, Minn.-based American Medical, which makes inflatable penile implants and urinary incontinence devices, in October issued a profit warning and reported disappointing third-quarter results. That marked the fourth time the company lowered guidance in 10 months. The company's laser therapy business has been partly responsible for cutting into overall revenue results. The company sells laser devices to treat illnesses in the pelvic area, such as enlarged prostate. American Medical's stock closed the year at $14.46, down from $18.52 roughly a year ago. Santa Barbara, Calif.-based Mentor Corp., which makes cosmetic and reconstructive surgery products, is just one company in the sector contending with higher costs of entering key aesthetics markets. In addition, investors have appeared concerned over uncertainties in the breast implant market and competition from Allergan Inc., which makes the Botox anti-wrinkle treatment. Mentor's stock fell sharply in November, after management noted a weakening in demand during the last month of the September quarter, as plastic surgeons reported a drop-off in patient consultations, which generally signals fewer surgical procedures. Shares of Mentor closed 2007 about 20 percent lower to $39.10. On the upside, Sunnyvale, Calif.-based Intuitive, which makes robotic surgical tools, reported its third-quarter profit doubled on sales of its da Vinci surgical system as more surgeons performed robotic procedures during the period. The system is designed to reproduce the doctor's hand movements in real time during surgery by use of tiny instruments inside the patient. Shares of Intuitive closed at $323, more than triple its year-earlier close of $95.90.
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