Originally Published MX January/February
2002

COVER STORY

Building a (Bigger)
Niche

American Medical
Systems CEO Douglas W. Kohrs says that his company's public-market success comes
down to two things: sales growth and profitability.

Interview by
Steve Halasey

American
Medical Systems (AMS; Minneapolis), a manufacturer and marketer of medical devices
used in the areas of incontinence, erectile dysfunction, and prostate disease,
has had a banner year. The company announced record-breaking results for the
third quarter of 2001, reporting a 22% increase in sales and a 52% increase
in earnings as compared with the same period in 2000. Such figures are staggering,
especially with the recent downturn that the U.S. economy has taken, but Douglas
W. Kohrs, president and CEO of AMS, doesn't consider the results surprising.
After all, the company that AMS is today was built by a group of savvy investors
and dedicated employees.

Founded in 1972,
AMS was acquired by Pfizer (New York City) in 1985. In September 1998, a group
of investors led by Warburg Pincus Equity Partners (New York City) acquired