Precision-guided therapy tools provider
) recently received the U.S. Food and Drug Administration's (FDA)
approval for the company's proprietary iFR (instant wave-Free
Ratio) Modality. Subsequently, the company initiated the limited
market release of the product in the U.S.
According to Volcano Corp., iFR Modality can be performed with
the same pressure wires and equipment used for Fractional Flow
Reserve (FFR). However, it does not inject hyperemic agents into
the patient's body that cause stress to the heart. Moreover, iFR
reduces timing costs per procedure and makes physiology guidance
fast and routine during multi-vessel disease cases. Combined with
the company's recently-introduced Verrata Pressure Guide Wire,
the iFR Modality can be used most efficiently.
The iFR Modality, which was earlier introduced in Europe and
Japan, has shown a strong adoption rate. Currently, this product
is installed on more than 300 systems globally, including Europe
and Japan. According to the company, this latest U.S. FDA
clearance will boost the adoption rate further leading to
upgradation of more than 90% of Volcano's worldwide installed
base of multi-modality systems.
Volcano Corp. is currently progressing well with the rollout
of iFR Modality in Europe and Japan. According to the company,
the recent release of two studies, ADVISE II and ADAPT-DES with
their positive outcomes, will help increase iFR and FFR adoption
and IVUS penetration in more complex cases.
According to the company, the broader market for intra-body
imaging and sensing products is expected to grow from $332
million in 2006 to $2.7 billion by 2021, representing a CAGR of
15% approximately. Within this broader market, the current market
for IVUS, FFR and Axsun products will capture only $750 million
reflecting high growth potential in the coming period. We note
that the current growth trend in the IVUS and FFR markets are
impressive at approximately 3.5% and 20-30% respectively.
The stock currently carries a Zacks Rank #4 (Sell).
Well-placed medical stocks worth considering include
). All the three stocks hold a Zacks Rank #2 (Buy).
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