Global innovator and manufacturer of health care products,
Covidien plc
(
COV
), has announced the U.S. Food and Drug Administration's (FDA)
clearance for its Nellcor Bedside SpO
2
Patient Monitoring System. The latest offering is now available for
sale in the U.S.
Management is enthused about the market launch of its Nellcor
Bedside SpO
2
Patient Monitoring System. The new product is an addition to the
company's oximetry and monitoring products under the Medical
Devices business segment. The latest addition to the company's wide
portfolio underlines its commitment towards patient safety across
general as well as critical areas of hospital care.
The Nellcor Bedside SpO
2
System is integrated with the company's OxiMax technology. Covidien
has built on the technology to promote critical care in clinical
decision-making and thereby improved standards of care.
The system continuously monitors SpO
2
as well as pulse rate for adult, neonatal and pediatric patients.
Its use by healthcare professionals can lead to detection of subtle
yet critical heart rate along with SpO
2
variations at an early stage. This enables faster treatment and
elimination of respiratory complications.
The Nellcor Bedside SpO
2
System allows easy access to patients' respiratory history, thereby
allowing the clinicians to take a holistic view of patients'
respiratory function status. The system can effectively detect and
diagnose acute and potentially fatal events to deliver efficient
and improved standard of care.
Covidien's latest offering also includes enhanced digital signal
processing for precise SpO
2
observation even under low perfusion and other demanding conditions
when it would otherwise not be possible to track these
patients.
The SatSeconds alarm integrated into the system can distinguish
minor events from those acute events which demand immediate
attention. This will result in a reduction of clinically
inconsequential oxygen desaturation alarms. The alarm management
feature further enhances patient care and safety.
Other meritorious features of the Nellcor Bedside SpO
2
System are that it meets the safety standards for medical
electrical equipment including IEC 60601-1:2005 and complies with
Restriction of the Use of Certain Hazardous Substances in
Electrical and Electronic Equipment (RoHS) directive for products
sold in European Economic Area markets.
The system has a multicolor screen that allows effortless
observations. With a replaceable battery and additional features,
it has been designed to save time and resources of the clinicians
and the hospitals.
The Nellcor Bedside SpO
2
System is yet another addition to Covidien's Medical Devices
business segment. The Medical Devices segment comprised nearly 69%
of net sales in the most recent quarter with segment revenue
increasing 4% year over year to $2,063 million, driven by higher
volume sales as well as new products.
Covidien's larger Medical Device unit overlaps with the business
of its competitors like
Johnson & Johnson
(
JNJ
),
Becton Dickinson
(
BDX
) and
C.R. Bard
(
BCR
).
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.
However, sustained pricing/procedure volume pressure,
fluctuating foreign exchange rates, sluggish U.S. and European
economies represent major headwinds.
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.
BARD C R INC (BCR): Free Stock Analysis Report
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