) recently revealed that it completed the earlier announced
takeover of superDimension for a sum of about $300 million, plus
the possibility of earn-out payments in future. According to
Covidien, it has acquired the entire equity of superDimension based
in Israel. The company will report the performance of
superDimension in the Endomechanical offering of its Medical
superDimension had annual revenues of about $30 million. Its
know-how provides less invasive access to lesions embedded in the
lungs and mediastinal lymph nodes. By prolonging the reach of
orthodox bronchoscopes, the company's offerings permit better
examination of lesions in the lungs.
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.
Revenues from Covidien's core Medical Devices segment climbed 7%
year over year to about $2 billion in the most recent quarter,
driven by double-digit growth across Vascular and Energy Devices
product-lines. New products and higher volume contributed to
The Vascular business had another strong quarter with revenues
soaring 17% to $390 million, spurred by healthy growth of venous
insufficiency and neurovascular products.
Covidien remains committed to rolling out new products and
technologies, focusing on the emerging markets and boosting market
share in core segments through investments in sales and marketing
infrastructure. 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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