FDA OKs Covidien's Novel Jaw Device - Analyst Blog


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Covidien plc ( COV ) announced the receipt of the U.S. Food and Drug Administration (FDA) 510(k) clearance for the LigaSure Maryland jaw open/laparoscopic sealer/divider. The FDA approval comes as a respite for Covidien given that it has very recently decided to withdraw its OneShot Renal Denervation program owing to low demand in the market.

The approval will give Covidien access to a vast market, simultaneously widening prospects for the industry-leading vessel and tissue sealing portfolio of the company.

In addition to the FDA go-ahead, Covidien has completed all the major European adherences needed to win the European CE Mark for the product. The company hopes to launch the new vessel sealer and divider in the U.S. and the European Union in the current quarter.

Along with Covidien, companies like Allergan Inc. ( AGN ) continue to compete in the laparoscopic devices market that could potentially worth $7.5 billion by 2018.

The product comes in three lengths, among which, the 37 cm version will be available to select customers in 2014, while the shorter 23 cm and the longer 44 cm versions will be launched in the latter part of the year.

The LigaSure Maryland jaw device integrates LigaSure's energy-based vessel sealing technology with three common surgical tools to enhance efficiency during laparoscopic and open surgeries. The three tools are a Maryland dissector - a blunt surgical tool with a curved jaw used to separate, grasp and manipulate tissue; an atraumatic tissue grasper and cold surgical scissors. The novel design of this jaw device is meant to facilitate surgeons to grasp, seal and cut tissue, in minimal steps using less instrument exchanges.

Covidien expects minimally invasive procedures in urologic, vascular, thoracic and thoracoscopic, and gynecology, wherein ligation and division of the vessels is performed, to benefit from the usage of this novel jaw device.

Foreseeing the ample opportunity offered by the dynamic medical devices industry, Covidien has already completed two important deals in the emerging economies of Brazil and China. We believe this medical device maker is headed for robust growth on the back of more such developments in the near term.

Currently, Covidien carries a Zacks Rank #2 (Buy).

Investors interested in the medical devices industry can also consider other top-ranked stocks like Cardiovascular Systems Inc . ( CSII ), and NuVasive, Inc . ( NUVA ). Both these stocks sport a Zacks Rank #1 (Strong Buy).

ALLERGAN INC (AGN): Free Stock Analysis Report

COVIDIEN PLC (COV): Free Stock Analysis Report

CARDIOVASCLR SY (CSII): Free Stock Analysis Report

NUVASIVE INC (NUVA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: AGN , COV , CSII , NUVA

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