Covidien Makes a Philanthropic Move

Leading global health care products company, Covidien plc (COV - Analyst Report), has offered its support to a non-governmental organization called the Brazilian Stroke Network (“BSN”) for spreading awareness about stroke prevention and cure in Brazil. Since ischemic stroke is the most common cause of death in the Latin American nation, Covidien promised to provide unlimited educational grant to the organization.

Covidien is expanding its footprint in emerging markets and boosting market share in core segments through investments in sales and marketing infrastructure. Management at the company’s Vascular Therapies business believes that this novel educational program by the BSN in collaboration with other Brazilian medical societies and the Ministry of Health can be used as a model for other nations as well.

BSN will offer a new course, “Stroke Prevention and Treatment in Brazil – Pre-hospital, Hospital Care and Basic Health Care”, to primary care professionals, stroke centers and emergency medical services in Brazil with the help of the grant provided by Covidien. The course is designed to train neurologists across the country in the best stroke treatments available. The course thus aims to increase the number of patients benefiting from the advanced treatment.

BSN strongly believes that Covidien’s contribution to their organization will help Brazil’s medical association to further penetrate into the interiors of the country and educate the poorer illiterate masses. The organization has teamed up with the Brazilian Neurology Society, Brazilian Medical Association and the Brazilian Stroke Society to work on the course and help Brazil’s Ministry of Health to effectuate a new stroke policy.

Built to develop ways to control the number of deaths from stroke, BSN along with the Brazilian Academy of Neurology and the Brazilian Stroke Society were awarded the first prize by the World Stroke Organization for their invaluable efforts to spread awareness across the country.

Covidien is an international medical technology major with a rich history of developing high-quality products in a cost-effective manner. It competes with Johnson & Johnson (JNJ - Analyst Report), Becton Dickinson (BDX - Analyst Report) and C.R. Bard (BCR - Analyst Report), among others.

However, sustained pricing/procedure volume pressure represents a headwind. We are currently Neutral on the stock, supported by a short-term Zacks #3 Rank (Hold).