Irish medical device giant
) recently acquired Florida-based New Wave Surgical for more than
$100 million. Shares of Covidien rose 1.3% in the trading session
following the news release and closed at $69.92 yesterday.
COVIDIEN PLC (COV): Free Stock Analysis
SYNERON MED LTD (ELOS): Free Stock Analysis
OWENS & MINOR (OMI): Free Stock Analysis
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New Wave Surgical's founder and former president R. Alexander
Gomez confirmed the sale last Thursday. Though the exact price of
the deal was not disclosed, it will ultimately be revealed in the
upcoming public filings.
New Wave Surgical manufactures the Defogging Heated Endoscopic
Lens Protector (or D-Help) system, designed and invented by
Gomez. The device, manufactured in New Wave Surgical's Pompano
Beach facility, keeps laproscopic and robotic lenses heated,
defogged and clean during surgical procedures. Covidien acquired
the same and changed the name of the device to Clearify
New Wave Surgical had secured a U.S. Food and Drug Administration
(FDA) approval for its D-Help System in Oct 2006 after which it
was commercially launched in Oct 2007. Though the device was
selling globally, New Wave Surgical lacked the scale to take full
advantage of the worldwide market for the device.
New Wave Surgical had been facing difficulty in raising capital
to fund an expansion when it was acquired by Covidien. Gomez
wanted to make D-Help system the standard of care and enjoy a
successful exit with the right partner. With its global footprint
and sales force spread all over the world, the decision to sell
off its operations to Covidien was a natural one.
Subsequent to the sale, Gomez and most of the New Wave Surgical
team have moved on, although the manufacturing plant has remained
at Pompano Beach. Presently, Gomez has plans to start a
healthcare fund with his partners in order to help young
entrepreneurs navigate the rapidly changing healthcare industry
with strong mentorship and capital.
Currently, Covidien retains a Zacks Rank #2 (Buy). Other stocks
performing well in the medical products industry are
Syneron Medical Ltd.
Owens & Minor Inc.
St. Jude Medical Inc.
). While Syneron Medical enjoys a Zacks Rank #1 (Strong Buy),
Owens & Minor and St. Jude Medical carry a Zacks Rank #2