), a leading global healthcare products company, recently secured
the European Economic Area (EEA) CE Mark approval for its Puritan
Bennett 980 ventilator. In a couple of trading days following the
announcement, Covidien's stock rose 0.7% to close at $71.40
COVIDIEN PLC (COV): Free Stock Analysis
ENZYMOTEC LTD (ENZY): Free Stock Analysis
SURMODICS (SRDX): Free Stock Analysis Report
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Engineered to help patients breathe more naturally, the Puritan
Bennett 980 Ventilator boasts some of the most innovative breath
delivery technologies available. Designed in a simple, safe and
smart way, it aims at improving patient comfort and clinician
ease of use. It is suitable for patients ranging from neonatal to
The Puritan Bennett 980 ventilator features an intuitive and
highly configurable touch screen, advanced connectivity, safety
measures, patient monitoring and unique synchrony tools.
Patients on mechanical ventilation are often sedated to ease
agitation and make them tolerant to breath support and other
medical interventions. Puritan Bennett 980 can be adjusted by
physicians to suit individual patient needs and provide
appropriate level of breath support with the aid of its advanced
The Puritan Bennett 980 ventilator received the U.S. Food and
Drug Administration (FDA) 510(k) clearance, last month. It was
also approved for commercial distribution in the U.S., Japan and
Canada and will be available for sale in these countries as well
as in EEA in the coming months.
For the first quarter of fiscal 2014 ended Dec 27, 2013, Covidien
reported adjusted earnings per share from continuing operations
of $1.00, up 3.1% year over year and 6 cents ahead of the Zacks
Consensus Estimate. The company reported a 2.8% rise in total
revenues to $2,639 million, exceeding the Zacks Consensus
Estimate by 1.4%.
Two of Covidien's product segments, namely, Surgical Solutions
and Vascular Therapies reported a 5.6% and 2.2% increase in
revenues, respectively. However, revenues from the Respiratory
and Patient Care segment slipped 0.4% during the quarter.
Within Respiratory and Patient Care, the Airway & Ventilation
category revenues were down 7.1% year over year to $182 million.
The decline was due to lower revenues from ventilation products,
primarily in Russia. With the launch of the new acute care
ventilator, management expects revenues from ventilation product
line to rebound in the latter half of the year. Regulatory
approvals should considerably boost revenues in the Airway &
Ventilation product line going forward.
Additionally, Covidien is focusing on innovation and strong
execution of new products along with expansion in emerging
markets and customer-focused portfolio management, all of which
are set to drive growth.
Currently, Covidien carries a Zacks Rank #2 (Buy). Some other
stocks worth considering in the medical products industry include
). While Enzymotec holds a Zacks Rank #1 (Strong Buy), both
Stryker and Surmodics carry a Zacks Rank #2 (Buy).