On June 21,
), global innovator and manufacturer of healthcare products,
announced the launch of Nellcor SpO
single parameter module in North America, European Economic Area
(EEA) and other select overseas markets. It is for treatment of
The single parameter module will be used with the
) IntelliVue patient monitoring platform to aid continuous
monitoring of oxygen saturation through pulse oximetry
This latest product offering is an addition to the Oximetry and
Monitoring Products of the company under the Medical Devices
business segment. Given the global trends and changes in
demographics and lifestyle which bolster cardiac and respiratory
disorders, the integration of Covidien's module with Phillips
patient monitors represents conjoined product use of two trusted
brands with relevant product portfolios.
As per management at Covidien, the single parameter module of
monitoring makes it compatible with Phillips' market leading
IntelliVue patient monitors. The product offering is a
cost-effective tool to detect and diagnose potentially fatal events
and enable clinicians to take a holistic view of patients'
respiratory function status.
This latest addition to the company's wide portfolio underlines
its commitment to enhance patient safety across general as well as
critical areas of hospital care.
Covidien expects to benefit from the integration, as Phillips
enjoys the leading position worldwide in patient monitoring systems
and continues to tap growth geographies to boost revenue. On the
other hand, the upgradation in the quality of patient care and
safety using Covidien's latest offering will help Phillips to focus
on its strategy of portfolio strengthening and accelerating
The Nellcor SpO
module is integrated with the company's market leading Nellcor
OxiMax pulse oximetry technology. Covidien has built on the
technology to promote critical care in clinical decision making and
thereby improve standards of care.
The Nellcor OxiMax technology reduces interference with cardiac
signals offering accurate and reliable monitoring even in difficult
situations like low perfusion. This is possible by observing the
signs which signify early warning of serious respiratory problems.
Specifically, these are the cardiac based readings from SpO
module and pulse rate.
module is compatible with the entire portfolio of Covidien's
Nellcor Sensors. It is also compatible with a variety of Phillips
monitors such as the Philips IntelliVue MP40 through MP90 monitors
and the Philips IntelliVue MX 600, MX 700 and MX 800 monitors.
The Nellcor SpO
module is yet another addition to Covidien's Medical Devices
business segment. Medical devices segment comprised 68% of net
sales in the most recent quarter with segment revenue figures
showing an increase of 7% year over year to $2.0 billion. New
products such as Nellcor SpO
module, V-Loc suturing device, Endo GIA Radial Reload, HALO90 ULTRA
Ablation Catheter, Versaport trocar and others launched earlier
this year, are expected to continue accelerating segment
Covidien plans to bolster its sales with the help of strategic
acquisitions and successful launch of its new products. It remains
committed to rolling out new products and technologies
consistently. Management expects that a focus on product innovation
and aggressive portfolio management will yield positive results in
the long run.
The stock currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. This is in agreement with our
long-term Neutral recommendation.
COVIDIEN PLC (COV): Free Stock Analysis Report
KONINKLIJKE PHL (PHG): Free Stock Analysis
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