Covidien's Test Data Positive for VenaSeal Closure System - Analyst Blog

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Covidien plc ( COV ) recently announced six-month results from the VeClose pivotal study, which was carried out to evaluate the safety and efficiency of the VenaSeal closure system, a treatment option for chronic venous disorders.

The VeClose study was primarily performed in order to compare the efficiency and safety of Covidien's existing ClosureFast catheter with the new VenaSeal closure system. Both of these cater to patients with chronic venous insufficiency.

Covidien's ClosureFast is an existing endovenous radiofrequency ablation catheter which uses segmental radiofrequency energy to provide heat to the collagen in the walls of a vein to seal it.

In comparison to the ClosureFast catheter, VenaSeal system uses a specially medicated adhesive to close veins. Additionally, VenaSeal system eradicates the need for surgery, thermal ablation and tumescent anesthesia.

The results, which were presented at American College of Phlebology Annual Congress (ACP 2014), displayed that the VenaSeal system has higher closure rates than the ClosureFast catheter. The closure rate at six months stood at 98.9% for VenaSeal system, compared with 94.3% for ClosureFast catheter.

The VenaSeal system is currently limited to investigational use in the United States, whereas its already approved in Australia, Canada, Europe and Hong Kong. Notably, more than 2,000 patients have undergone the treatment option.

Covidien recently reported impressive fourth-quarter financial numbers wherein it beat both earnings and sales expectations. Meanwhile, the introduction of the VenaSeal closure system in the U.S. market will help amplify Covidien's market share in the near term.

However, Covidien faces significant competition from the likes of Becton, Dickinson and Co. ( BDX ), CR Bard Inc. ( BCR ), Johnson & Johnson ( JNJ ), which is major headwind in the near term.

Currently, Covidien carries a Zacks Rank #3 (Hold).

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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.

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

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