Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

This Acquisition Will Improve Abbott Laboratories (ABT)’s Business

DES holds a majority of the coronary stent market, about 55%-60%, and Abbott Laboratories (NYSE:ABT) Vascular represents 25% of that. The addition of IDEV will enhance its market position. The global coronary stent market is expected to be around $8.3 billion by 2016 according to Transparency Market Research. Based on that statistic, I expect Abbott Laboratories (NYSE:ABT) to generate sales of $1.0 – $1.5 billion by 2016 in the DES market.

Competitors

The EverFlex Self-Expanding Peripheral Stent System from Covidien plc (NYSE:COV)is a stent technology for the treatment of PAD especially for the knee. The product is a Nitinol stent system that covers a diameter range of 4.5-7.5 mm, mainly intended for permanent implant in case of SFA. EverFlex is a vascular product approved in Europe in 2011 and in the U.S in 2012. During second quarter 2013, the company’s vascular products revenues increased at 6% (constant currency) to $404 million, over $390 million in the same period 2012. The growth was due to increased sales of peripheral vascular products.

LifeStent Solo Vascular Stent Systems from C.R. Bard, Inc. (NYSE:BCR) is the longest marketed stent (200 mm) indicated for the treatment of SFA. The product was approved by the FDA in 2009. During first quarter 2013, the company’s vascular segment sales decreased by 3% (constant currency) to $203.2 million, over $209.2 million in the same period 2012. The decrease was to declining sales of peripheral vascular grafts, stents, and biopsy products.

Conclusion

IDEV Technologies is expected to receive FDA approval for the SUPERA Veritas stent for fem-pop arteries before 2015. The scope for SUPERA Veritas stent is high due to its superior accuracy, strength and flexibility over other stent products. Abbott Laboratories (NYSE:ABT) already has a strong pipeline and portfolio of market leading products in cardiac and vascular devices and the addition of IDEV Technologies will strengthen Abbott’s position especially in fem-pop arteries indication.

The article This Acquisition Will Improve Abbott’s Business originally appeared on Fool.com and is written by Kanak Kanti.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends Covidien. Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.