), 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
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
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
), 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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