) received positive news when the U.S. Food and Drug
Administration (FDA) approved its percutaneous valve repair
The FDA approved MitraClip device to treat patients with
significant symptomatic degenerative mitral regurgitation (MR)
who are at prohibitive risk of mitral valve surgery.
Consequently, Abbott Labs will launch its MitraClip device
immediately in the U.S.
We note that MitraClip is already approved in the Europe and
parts of Asia and Latin America.
Meanwhile, Abbott Labs continues to evaluate the impact of
MitraClip treatment on the progression of heart failure through
two randomized trials - COAPT in the U.S. and RESHAPE-HF in
We note that the vascular business is an important part of
Abbott Labs' product portfolio. The vascular business generated
total sales of $2.2 billion in the first nine months of 2013,
down 3.1% year over year.
For the third quarter, vascular sales were up 2.5% on an
operational basis driven by continued share gains in
international markets. Of the total vascular sales, approximately
$384 million came from the sale of drug-eluting stents and the
bioresorbable vascular scaffold (BVS) product portfolio.
The approval of MitraClip will strengthen Abbott Labs'
vascular business which already has drug-eluting stent, Xience
Xpedition and BVS Absorb, under its portfolio.
Moreover, the acquisition of privately-held IDEV Technologies
has added SUPERA Veritas stent system to Abbott Labs' product
The stent system is approved in Europe for treating blockages
in blood vessels due to peripheral artery disease (PAD).
Moreover, SUPERA Veritas is approved in the U.S. for the
treatment of biliary strictures (narrowing of a bile duct)
related to cancer.
Abbott Labs expects to increase sales in low single digits
(excluding foreign exchange rates) in the fourth quarter of
We believe the launch of new products will help Abbott Labs to
broaden its vascular business.
We remind investors that Abbott Labs became a diversified
medical products company focusing on branded generic
pharmaceutical, medical devices, diagnostic and nutritional
businesses following the separation of its research-based
pharmaceuticals business into a new company,
), in Jan 2013.
Abbott Labs currently carries a Zacks Rank #3 (Hold). Right
now, large cap pharma stocks like
Johnson & Johnson
) look attractive, each with a Zacks Rank #2 (Buy).
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