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.
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.
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.
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