Back to top

Analyst Blog

In an attempt to expand its line of devices for the treatment of peripheral arterial disease ("PAD"), precision-guided therapy tools provider Volcano Corporation (VOLC - Analyst Report) formed an alliance with medical device major Medtronic Inc. (MDT - Analyst Report). Per the deal, Volcano will purchase Medtronic’s Pioneer Plus diagnostic ultrasound transducer and percutaneous catheter. Although financial terms of the deal were not disclosed, the companies expect the transaction to complete by the end of August.

The Pioneer Plus re-entry catheter of Medtronic is an interventional device designed to treat crossing of sub-total, total and chronic total occlusions (CTOs) within the peripheral vasculature, doing away with the need for surgery. This acquisition is in the best interests of Volcano as its IVUS (Intravascular Ultrasound) technology that provides cross-sectional ultrasound image before additional interventions, such as balloon angioplasty or stent placement, directly compliments Pioneer Plus. Thus Volcano is optimistic about the inclusion of these catheters in the broad range of the company’s peripheral portfolio.

Moreover, Pioneer Plus has regulatory approval in the U.S., Europe and other geographic regions. The huge customer base it enjoys should thus also prove helpful to strengthen Volcano’s foothold across all these geographies.

With an aim to drive growth through acquisitions, Volcano, in Dec 2012, purchased California based Crux Biomedical that develops advanced therapies for the human vasculature. This acquisition added the Crux Vena Cava Filter (VCF) System to the product line. It is a highly differentiated inferior vena cava (IVC) filter used to treat life threatening pulmonary embolisms (PE). Currently, the company is preparing for a full market launch for the Crux device in the first half of 2014, while expecting to combine their IVUS technology with the Crux VCF System.

Volcano continues to believe that the IVUS market remains under-penetrated. In the next few years, the penetration rate of integrated consoles in cath labs is expected to reach 80% or more, from the current level of just over 30%. Banking on its ability to expand its product offering and continuously upgrade technology, the company is confident of reaping maximum advantages from this lucrative market.

Volcano currently carries a Zacks Rank #3 (Hold). Other medical devices companies that are expected to outperform in the near term are Alere (ALR - Snapshot Report), with a Zacks Rank #1 (Strong Buy), and Align Technologies (ALGN - Analyst Report)  carrying a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
CLAYTON WIL… CWEI 117.06 +3.73%
GREENBRIER… GBX 69.63 +2.37%
RF MICRO DE… RFMD 12.02 +2.04%