) has won regulatory approval for two of its port offerings,
which came in as a major boost to its vascular access franchise.
The U.S. Food and Drug Administration (FDA) have cleared the
company's Xcela Plus Port family, with Pressure Activated Safety
Valve (PASV) technology. Similarly, Health Canada provided the
Medical Device License for its Smart Port CT family of
power-injectable ports, featuring Vortex port technology.
About Xcela Plus Port
The Xcela Plus Ports, the only proximally valved CT port
available in the market, provide a competitive advantage to the
company. The PASV valve technology reduces nursing time and has
been clinically proven to be superior to non-valved ports.
The Xcela Plus Ports was originally developed by Navilyst
Medical, which was acquired by the company in 2012. The device is
now a part of AngioDynamics' vascular access products portfolio,
under its larger Vascular segment. AngioDynamics plans to sell
the product line in the U.S. from fiscal 2014. The FDA clearance
has also encouraged the company to develop new products by
integrating its port and dialysis offerings with BioFlo
About Smart Port
The Smart Port CT family of power-injectable ports, also a part
of the vascular access product line, can be implanted under the
skin to provide long-term medication delivery to a patient's
vascular system. It can also be used in a Computed Tomography
(CT) scan. These ports have been cleared by the U.S. FDA and have
European CE Mark approval. The Vortex technology in the Smart
Port further enhances its performance to improve patient outcome.
The launch of Smart Port in Canada is in accordance with
AngioDynamics' existing contract with HealthPRO, Canada's
national healthcare group purchasing organization (GPO). The
Health Canada approval complements the company's long-term
strategy to expand in international markets. It is going to help
the company to expand in the rapidly growing Canadian market.
Approvals from the U.S. FDA and Health Canada for the company's'
technologically advanced ports will improve sales of the weak
vascular access business in fiscal 2014. Revenues from this
business declined 4% in the last reported quarter due to the lack
of a tip location technology and sales force disruption, which
adversely affected PICC sales. However, ports and dialysis
revenues were within the company's expectations.
AngioDynamics should continue to benefit from the ongoing shift
from open surgery to less invasive interventional procedures.
Despite the near-term operational glitches, the company has the
ability to grow in the long term on the back of higher
international sales, new products, acquisitions, as well as
operational synergies from its cost saving measures.
AngioDynamics currently carries a Zacks Rank #3 (Hold). While we
remain on the sidelines for AngioDynamics, we believe that other
medical instrument stocks such as
), carrying a Zacks Rank #1 (Strong Buy), warrant a look.
), carrying a Zacks Rank #2 (Buy), are also worth considering.
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