Vancive Medical Technologies, a unit of Avery Dennison Corporation (AVY), has entered into an agreement with CareFusion Corporation (CFN) for licensing and distribution of its BeneHold Chlorhexidine Gluconate (CHG) antimicrobial adhesive technology. This technology is for applications in vascular access.
Under the agreement, CareFusion will promote Vancive’s CHG technology in the U.S., Canada and Mexico and it will be co-branded under CareFusion’s new brand, ChloraShield. The product already received 510(k) approval from the U.S. Food and Drug Administration (FDA) in Sep 2012.
At present, the health care industry demands diverse functional adhesive materials for highly specialized applications. Medical tapes and films need to be durable, flexible and safe to use in a range of conditions and combinations – in some cases, within the human body itself.
CareFusion and Vancive are working together to develop a comprehensive line of dressing products to meet the specific needs associated with various vascular access procedures.
CareFusion’s infection preventive expertise together with Vancive’s advanced technology has formulated the BeneHold (CHG) adhesive. It is used in transparent dressings to protect the catheter insertion areas.
The collaboration reflects CareFusion’s leadership initiatives in CHG products. The product will help CareFusion expand its infection prevention and vascular access product portfolios, providing greater value to customers. CareFusion expects to commercialize these offerings during the third quarter of fiscal 2014, which begins in April.
Avery, which operates in the office supply, labeling and packaging industry along with CompX International Inc. (CIX) and OSL Holdings Inc. (OSLH), reported adjusted earnings of 69 cents per share in the third quarter 2013, up 35% year over year and ahead of the Zacks Consensus Estimate of 65 cents. The results benefited from higher revenues in the core segments as well as Avery’s restructuring and other productivity actions.
With the divestiture of the underperforming Office and Consumer Products unit, Avery Dennison will be able to focus on its core segments and enhance its growth profile. However, the uncertain macroeconomic environment remains a headwind.
Avery currently holds a Zacks Rank #2 (Buy).
Pasadena, Calif.-based Avery Dennison manufactures pressure-sensitive materials and tickets, tags, labels and other converted products. Avery has over 200 manufacturing and distribution facilities across more than 60 countries.
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