International medical technology major
) recently launched the HALO90 ULTRA Ablation Catheter in the U.S.
and Europe. It is used for treating Barrett's esophagus, a
precancerous condition caused by gastroesophageal reflux disease
("GERD"). It is also used to treat a disease known as 'watermelon
stomach', characterized by chronic bleeding.
The HALO90 ULTRA has an electrode attached to the end of an
endoscope, which is used to gently remove the infected tissues and
aid the growth of new, healthy tissues. The new HALO90 ULTRA is
longer than the original HALO90 focal instrument, takes less time
to treat the ablation and also covers twice the area per energy
utilization compared to the earlier version.
The newly-launched product is the latest addition to the HALO
family of catheters, which Covidien added to its portfolio through
the acquisition of California-based privately-held BARRX Medical
for roughly $325 million. The device can be used on its own or
along with the HALO90, HALO60 and the HALO360 Ablation
BARRX MedicaL manufactures devices (ablation catheters/systems)
for treating gastrointestinal diseases and Barrett's esophagus
syndrome. Its devices (marketed under the HALO moniker) use bipolar
radiofrequency waves and provide uniform and controlled ablation
that removes the diseased tissue and stimulates regeneration of
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 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 Covidien, backed by a short-term
Zacks #3 Rank (Hold).
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