Covidien plc (COV) announced that it has commercially launched Barrx Channel RFA Endoscopic Catheter, a new offering from its radiofrequency ablation (RFA) product line under the GI Solutions business. The device is used to treat Barrett’s esophagus syndrome, a pre-cancerous condition of the lining of the esophagus (the tube that carries food from the throat to the stomach) and certain gastrointestinal bleeding disorders.
The new device is capable of delivering RFA through the working channel of an endoscope, thereby eliminating the need for multiple endoscope introductions and reducing procedure time. Both the U.S. Food and Drug Administration (FDA) and the European CE Mark have approved the Barrx Channel RFA Endoscopic Catheter for sale. It received the CE Mark in March and the U.S. FDA in July this year and is available for sale in both Europe and the U.S.
Covidien acquired Calif.-based privately held Barrx Medical in Jan 2012 to bolster its presence in the gastrointestinal diseases therapy space. The new offering from Barrx complements the company’s energy-based product portfolio and is in tandem with its strategy to invest in products that can offer global competitive advantage.
Covidien also offers the HALO ablation catheters from its Barrx portfolio for the treatment of Barrett's esophagus. This health care product major had launched the HALO60 ablation catheter and the HALO90 ULTRA Ablation Catheter in 2012.
In the last reported quarter, revenues from Covidien’s Energy Devices products under the core Medical Device segment climbed 8% to $355 million on the back of strong double-digit vessel sealing sales along with contribution from new products like LigaSure Small Jaw and Sonicision. The business’ pipeline is also healthy, with the recent launches of the next-generation LigaSure Impact implant tip.
Covidien has a Zacks Rank #3 (Hold). We remain on the sidelines regarding the future prospect of this company following the divestment of its Pharmaceuticals unit. While we remain on the sideline about COV, other medical stocks such as Hanger (HGR), Alere (ALR) and Cyberonics (CYBX) are worth considering with a Zacks Rank #1 (Strong Buy).
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