Join        Login             Stock Quote

Covidien (COV) To Acquire California-Based Healthcare Provider

 December 26, 2012 07:37 AM

(By Balachander) Covidien Plc (NYSE: COV), a developer of healthcare products, has agreed to acquire privately-held CV Ingenuity for an undisclosed sum.

Fremont, California-based CV Ingenuity is engaged in improving patient outcomes in the treatment of peripheral arterial disease (PAD) by providing services to relieve vascular obstructions, inhibit restenosis, and allow natural vessel healing.

CV Ingenuity's core technology, while still in the investigational phase, is a Drug Coated Balloon (DCB) platform with a novel, proprietary, tunable, rapid-release system.

Ireland-based Covidien, with revenue of $11.9 billion in 2012, said it does not expect approval from the U.S. Food and Drug Administration (FDA) for a DCB product using the CV Ingenuity technology until fiscal 2017.

[Related -S&P Buys That Pass The Buffett Test]

As a result of the deal, Covidien expects additional expenses to be more than $20 million in the second half of fiscal 2013 and more than $30 million in fiscal 2014.

"CV Ingenuity offers a robust DCB portfolio, and offering a DCB technology is something that we believe is necessary to continue to improve care for patients suffering from PAD, as well as ensuring we are a full line partner with our customers today and into the future," said Stacy Enxing Seng, President, Vascular Therapies, Covidien.

The companies expect to close the deal in the first calendar quarter of 2013.

COV shares, which have been trading in the 52-week range of $44.52 to $60.81, ended at $57.18 on Monday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

article imageTreasury Market’s Inflation Expectations Tumble

The odds for a Fed rate hike are falling like a stone, or so it appears based on the implied inflation read on...

article imageEmerging Market Stocks: Last Week’s Red-Ink Leader

Value investors on the lookout for bargains have recently been eyeing up the battered corner of emerging read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.