Leading healthcare products maker Covidien (COV - Analyst Report) recently announced a new software application for its ForceTriad energy platform. The bipolar resection software application has been introduced in North America. The ForceTriad tissue fusing and electrosurgery system is a product from the company’s Medical segment’s Energy devices.
The latest software offers better multi-use capabilities to the ForceTriad platform, which enables the platform to be applied to additional surgical procedures. It is also adaptable with bipolar resectoscopes developed by Karl Storz Endoskope and Richard Wolf Medical Instruments Corporation. Covidien’s Valleylab Exchange software update system can be used to update the ForceTriad. The software can be deployed to more than 10,000 installed ForceTriad devices in the U.S.
Along with the TissueFect sensing technology available with ForceTriad, the new application will enable doctors to perform transurethral resections of the prostrate. The technically advanced software application reaffirms Covidien’s cost saving strategy as well as its efforts to enhance healthcare facilities with improved patient outcomes.
Covidien is a leading global health care products company 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. The company plans to bolster its sales with the help of strategic acquisitions.
Covidien remains committed to rolling out new products and technologies, focusing on emerging markets and boosting market share in core segments through investments in its sales and marketing infrastructure. It has launched 100 new products over the last five years and is on track to introduce another 50 products over the next two years.
However, sustained pricing/procedure volume pressure represents a headwind. We are currently Neutral on the stock, which carries a short-term Zacks #3 Rank (Hold).