) has launched two vessel sealing that are superior to their
predecessors in terms of handling, control and performance. The
products are LigaSure Impact curved large jaw open sealer/divider
LF4318 and LigaSure blunt tip laparoscopic sealer/divider LF1637.
BIO-RAD LABS -A (BIO): Free Stock Analysis
COVIDIEN PLC (COV): Free Stock Analysis
DIADEXUS INC (DDXS): Get Free Report
HILL-ROM HLDGS (HRC): Free Stock Analysis
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The LigaSure Impact device promises an advanced surgical
experience with improved visibility, more intuitive jaw
positioning and enhanced ergonomics. On the other hand, the
LigaSure blunt tip laparoscopic sealer/divider ensures better
handling, and compact and ergonomic grip for better comfort and
control for various hand sizes.
Both the products have received 510(k) clearance from U.S Food
and Drug Administration (FDA) earlier this year. They are
designed for colorectal, general, gynecologic, urologic and
Covidien's LigaSure products, introduced in 1998, combined with
the ForceTriad energy platform utilizing TissueFect sensing
technology, provides a variety of desired tissue effects. This
technology is a proprietary control system designed by COV to
manage energy delivery.
Recently, Covidien announced plans to reduce costs by outsourcing
services to low-cost regions and consolidating manufacturing and
distribution centers. The company expects to generate savings of
$250 million-$300 million annually from the cost reduction
measures from the beginning of fiscal 2014. Savings are expected
to accelerate in fiscal 2015.
COV anticipates the majority of the restructuring measures to be
completed by the end of fiscal 2018. The company expects to incur
charges of $350 million-$450 million due to the restructuring,
mostly by the end of fiscal 2018.
Recently, the manufacturer of medical devices and supplies also
declared a 23% rise in dividend to 32 cents from 26 cents per
share, which is payable on Nov 5 to shareholders of record as on
Oct 10, 2013.
Covidien posted flat adjusted earnings per share from continuing
operations of 91 cents for the third quarter of fiscal 2013, on a
year over year basis. However, earnings beat the Zacks Consensus
Estimate by a penny.
Revenues in the quarter increased 3% (up 5% in constant currency)
to $2,578 million, driven by higher sales in the Medical Devices
segment. Revenues were slightly below the Zacks Consensus
Estimate of $2,587 million.
Currently, COV carries a Zacks Rank #3 (Hold). While we remain on
the sidelines regarding the company, other medical products
companies that are performing well include
Bio-Rad Laboratories, Inc.
) with a Zacks Rank #1 (Strong Buy), and
Hill-Rom Holdings, Inc.
), both with a Zacks Rank #2 (Buy).