International healthcare major,
) has inked an agreement with leading pulmonary imaging software
service provider, VIDA Diagnostics. As per the agreement,
Covidien will sell VIDA's market-leading Apollo imaging software
technology along with its i-Logic lung navigation system to
advance minimally invasive treatment of lung diseases.
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The i-Logic system has been developed by superDimension, which
Covidien acquired in May 2012 to boost its Medical Devices
segment's product portfolio. The device is used in the treatment
of lung cancer, chronic obstructive pulmonary disease (COPD),
asthma and other lung disease.
According to the American Lung Association, about 370,000 people
suffer from lung cancer with an annual expense of $14 billion.
COPD (third leading cause of death in the U.S.) and asthma add
$18 billion and $56 billion, respectively, to annual healthcare
expenses in the U.S.
Covidien is a leading global health care products company with a
history of developing high-quality products in a cost-effective
manner. The collaboration with VIDA has rendered its offerings
for lung treatment advantageously, as it has provided doctors
with more treatment options. Its minimally invasive i-Logic
system can gain access to areas of the lungs unattainable by
traditional bronchoscopy. Along with the Apollo technology, which
provides accurate imaging information, the combined technologies
enable physicians to deliver enhanced lung treatment.
Covidien remains committed to rolling out new products and
technologies, focusing on emerging markets, and boosting market
share in core segments through acquisitions. It is also enhancing
shareholders' value through dividends and share repurchases,
leveraging healthy free cash flow and strong earnings power.
However, Covidien faces stiff competition and remains exposed to
pricing and utilization headwinds, along with
acquisition/divestment risks. We also remain concerned about the
tepid European economy. In addition, foreign exchange translation
is expected to dampen growth.
Covidien currently carries a Zacks Rank #3 (Hold). Other
) are expected to do well in the medical industry. While NuVasive
carries a Zacks Rank #1 (Strong Buy), the other two are Zacks
Rank #2 (Buy) stocks.