) recently announced that it has received approval for the
Xience Xpedition Everolimus Eluting Coronary Stent System from
the Ministry of Health, Labor and Welfare (MHLW) in Japan. The
stent system has been approved for the treatment of coronary
artery disease (CAD).
We note that Abbott Labs was expecting an approval for the
same and plans to launch Xience Xpedition in Japan later this
year. The Xience drug-eluting stent family is an important part
of Abbott Labs' vascular business. Abbott Labs has been
consistently making efforts for the last three years to innovate
its Xience drug-eluting stent franchise (including Xience V,
Prime, nano and Xpedition).
Xience nano and Xience Prime were launched in the US in 2011
while Xience Prime and Xience V were launched in Japan in Apr
2012 and Jan 2010, respectively. The launch of Xience Xpedition
in the US in Jan 2013 and its approval in Japan will further
boost the sales potential of the franchise.
Another promising device for CAD in Abbott Labs' kitty is
Absorb. Last month, Abbott Labs initiated a randomized controlled
study in Japan to evaluate Absorb, its bioresorbable vascular
scaffold (BVS) device, in patients suffering from CAD.
The vascular business is an important part of Abbott Labs'
product portfolio. The company is continuously working to boost
its vascular products portfolio and expects to launch several
products in the next five years. We believe the launch of new
products should help Abbott Labs combat the decline in vascular
sales due to pricing pressure.
The vascular business generated sales of $742 million in the
first quarter of 2013, down 7.7% from the year-ago period. Of the
total vascular sales, approximately $387 million came from the
sale of drug-eluting stents and the BVS product portfolio.
We expect the continued uptake of Xience Xpedition in the US
along with the expected launch of Xience Xpedition in Japan later
in 2013 and traction in Absorb device should drive growth in the
vascular business in the upcoming quarters.
We note that
) also has an everolimus-eluting stent platform.
Abbot Labs currently carries a Zacks Rank #3 (Hold). Right
Baxano Surgical, Inc.
LeMaitre Vascular, Inc.
) look attractive with a Zacks Rank #2 (Buy).
ABBOTT LABS (ABT): Free Stock Analysis Report
BAXANO SURGICAL (BAXS): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
LEMAITRE VASCLR (LMAT): Free Stock Analysis
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