COV Launches Endo GIA Radial Reload - Analyst Blog

By Zacks Equity Research,

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Covidien plc ( COV ), a large-cap medical technology company, launched its latest offering, the Endo GIA Radial Reload aided with Tri-Staple technology. The device is used for colorectal surgery for treating tumors and infected tissues in the deep pelvis.

Covidien's revolutionary Radial Reload is yet another addition to the company's vast medical devices product portfolio. In the most recent quarter, revenues from the larger Medical Devices segment climbed 7% year over year to $2,004 million, driven by double-digit growth across Vascular and Energy Devices product lines.

New products and higher volume contributed to growth. Within Medical Devices, revenues from Endomechanical Instruments increased 4% to $577 million helped by stapling products (including Tri-Staple).

The Radial Reload device enables surgeons to perform both open and laparoscopic low anterior resection ("LAR") surgery with better precision and visibility. One of the advantages of the instrument is that it can staple colon tissue up to 2 centimeters deeper than a competitor's stapler.

The Tri-Staple technology integrated into the Endo GIA Radial Reload enables better perfusion into the staple line, exerts lower pressure on the tissue during compression and clamping and manages tissue variability effectively.

Covidien is a leading global health care products company with a rich history of developing high-quality products in a cost-effective manner. It competes with Johnson & Johnson ( JNJ ), Becton Dickinson ( BDX ) and C.R. Bard ( BCR ), among others.

Covidien remains committed to rolling out new products and technologies, focusing on emerging markets, and boosting market share in core segments through investments in sales and marketing infrastructure. It has launched 100 new products over the last five years and is on track to introduce another 50 products over the next two years.

However, sustained pricing/procedure volume pressure represents a headwind. We are currently Neutral on the stock, supported by a short-term Zacks #3 Rank (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BCR , BDX , COV , JNJ

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