Volcano's New Agreement

Volcano Corporation (VOLC - Analyst Report) has entered into a non-exclusive, global resale agreement with Siemens Healthcare, a division of Siemens AG (SI - Analyst Report). Per the agreement, Siemens will resell Volcano's s5i IVUS/FFR systems and accessories along with its Artis family of x-ray systems.

Volcano's s5i is a component-based system that is incorporated directly into the catheterization lab, commonly known as the cath lab, thereby allowing intravascular ultrasound (IVUS) and fractional flow reserve (FFR) systems to remain always ON and ready. The company's IVUS and FFR systems are compatible with Siemens' Artis x-ray offerings.

The new agreement appears to be a win-win for both companies. Volcano's top-line will be substantially benefited by the agreement with the global giant. On the other hand, Siemens is a technology leader in the cath lab market focusing on a complete cath lab package. Siemens should benefit from the agreement as Volcano's s5i IVUS and FFR systems are a perfect match for Siemens' x-ray systems.

Volcano Corporation offers a broad suite of IVUS and functional measurement (FM) products, like the FFR systems, to enhance the diagnosis of vascular and structural heart disease, facilitates endovascular procedures, and guide optimal therapies. The company's IVUS product line can be directly integrated into virtually any modern cath lab.

Volcano's IVUS technology enables physicians to determine the stent size by visualizing vessel geometry and understanding plaque composition. The FFR technology enables them to make a physiological measurement of a lesion to evaluate the requirement for treatment. Both of these technologies are integrated into the cath lab in one system by using Volcano's s5i system.