C.R. Bard Inc. BCR recently announced results from the LEVANT 2 clinical study that validated the superiority of its Lutonix 035 Drug Coated Balloon (DCB) compared to a standard percutaneous transluminal angioplasty (PTA) procedure.
The LEVANT 2 global clinical trial was conducted at 54 sites, of which 42 were in the U.S. and 12 in Europe.
The results from the study were published in the June 24, 2015 online issue of The New England Journal of Medicine. According to the results, C.R. Bard’s Lutonix DCB has better primary patency than a standard PTA procedure. In simple words, the DCB device is more effective in keeping blocked arteries open than traditional PTA.
Lutonix DCB is an angioplasty balloon that is coated with a therapeutic dose of the drug paclitaxel, used to treat patients with peripheral arterial disease (PAD). The device was cleared by the FDA for PTA in Oct 2014.
We feel the positive results from the study will bode well for C.R. Bard. Physicians will now be more inclined to use the Lutonix DCB, given its proven clinical efficacy. Naturally, sales for the product should increase, which, in turn, will propel top-line growth.
Earlier this month, the U.S. Centers for Medicare and Medicaid Services (CMS) increased reimbursement for the company’s Lutonix DCB for outpatient use. We believe, the improved pass-through payment for the product will ease the stiff pricing environment created by government-related healthcare reforms, to a certain extent.
In Feb 2015, the company entered into a limited distribution agreement with Boston Scientific Corp. BSX for the distribution of the product in the U.S., which will further help increase the visibility of the product in the domestic market.
However, C.R. Bard’s Lutonix DCB faces competition from Medtronic’s MDT Admiral DCB in the peripheral vascular market.
Zacks Rank
Currently, C.R. Bard has a Zacks Rank #2 (Buy). Investors interested in the medical sector can also consider AMN Healthcare Services AHS, which has a Zacks Rank #1 (Strong Buy).
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