) recently declared its plans to withdraw its OneShot Renal
Denervation program. Covidien expects to record after-tax charges
in the range of $20 million to $25 million as a result of exiting
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The OneShot system is a wire balloon-based irrigated catheter
technology, designed for patients suffering from hypertension who
failed to respond to other conventional medical therapy forms.
Covidien marked its entry into the renal denervation market with
the purchase of Maya Medical and eventually unveiled the OneShot
Weak demand for the product as demonstrated by the
slower-than-expected development of the renal denervation market,
prompted the company for such a move. The exit decision is
believed to be the outcome of the regular review of the strategic
programs that were undertaken by the company to examine the
growth aspects of its varied product portfolio.
Recently, medical devices maker
) also announced that its U.S. pivotal trial in renal denervation
for treatment-resistant hypertension, SYMPLICITY HTN-3, failed to
meet its primary efficacy endpoint.
However, the voluntary move by the company will not stop it from
exploring further opportunities in the hypertension market, which
has strong potentials to accelerate future growth prospects of
Following the decision to exit the market, Covidien will also not
move ahead with its RAPID II study (Rapid Renal Sympathetic
Denervation for Resistant Hypertension Using the OneShot Ablation
The company plans to collaborate with physicians and the renal
denervation community in future to ensure that its existing
OneShot patients are informed about its exit decision, and
currently enrolling clinical trials receive a smooth transition.
Currently Covidien carries a Zacks Rank # 1 (Strong Buy).
Investors interested in the medical device industry can also look
at other top-ranked stocks like
Cardiovascular Systems Inc.
). Both these stocks carry the same Zacks Rank as Covidien.