Recently,
Volcano Corporation
(
VOLC
) launched its Valet microcatheter in the U.S. and Europe. The
company's latest offering is available in lengths of 100cm, 135cm
and 150cm and sizes compatible with 0.014" and 0.035" guidewires.
The launch of Valet microcatheter underlines Volcano's focus on
precision guided therapy, mainly for the treatment of highly
stenosed lesions.
During the first quarter of 2012, Volcano initiated a limited
market release of its Valet microcatheter in the U.S. after
gaining the U.S. Food and Drug Administration (FDA) 510(k)
approval in Jan. This was followed by CE Mark approval in Europe
for the device and a limited market release in Europe in the
second quarter. The company is looking at a 2013 approval of
Valet in Japan. We expect revenue contribution from Valet to
improve gradually.
Valet microcatheter is the first product from Volcano to include
its proprietary VeriTorque technology which lends the catheter a
remarkable torque performance. The VeriTorque technology in
conjunction with Valet's distal tip ensures efficient control and
ease of positioning the microcatheter in tortuous and distal
anatomy. As a result, Valet is a technically advanced
microcatheter, especially useful for highly stenosed lesions.
Notably, pipeline development at Volcano is progressing well. The
launch of Valet is aligned with the company's strategy of
commercializing pipeline products. Further, Volcano plans to
launch existing pipeline candidates like FL.IVUS, FL.ICE, Optical
Coherence Tomography (OCT), CruxIVCF and Sync-Rx software
modalities among others. According to the company, the total
addressable market for its pipeline products exceeds $1.5
billion.
Volcano expects to post compound annual growth rate (CAGR) of 13%
for its top line over the next five years. It asserts that
commercialization of pipeline products should result in a
higher-than-expected CAGR in the coming years.
On the tepid side, the company continues to battle softness in
the European market. Volcano also faces tough competition for its
IVUS range from
Boston Scientific
(
BSX
).
Volcano carries a Zacks Rank #3(Hold). Although we remain on the
sidelines for this medical sector stock, we believe that other
medical sector stocks such as
Edwards Lifesciences
(
EW
) and
Conceptus
(
CPTS
) warrant a look. These stocks carry a Zacks Rank #2 (Buy).
BOSTON SCIENTIF (BSX): Free Stock Analysis
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EDWARDS LIFESCI (EW): Free Stock Analysis
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