Hansen Medical (HNSN - Snapshot Report), a global developer and manufacturer of intravascular robotics, recently announced the expansion of its intellectual property portfolio on the back of 30 additional patents in the U.S. since January 2011. The company also shares the rights to more than 250 issued U.S. patents associated with medical robotics via licensing with third parties.
Many of these additional patents bestow further coverage and exclusionary rights for Hansen Medical’s Magellan Robotic System. It received the 510(k) clearance from the U.S. Food and Drug Association (FDA) for the system on June 4, 2012. Management believes that Magellan Robotic Systems has a latent quality, in that it can be a major growth driver for the company.
The Magellan Robotic System has the potential to revolutionize peripheral vascular intervention because of improved lesion access, precise control over distal tip, solid catheter stability and procedural efficiency. Hansen Medical has already initiated a commercial launch for the system in the European Union, where it received the CE Mark in July 2011. Additionally, the system has been approved in Australia, while it is pending approval in Canada.
Certain patents also improve the coverage for Hansen Medical’s Sensei X Robotic Catheter System. According to the company, Magellan Robotic Systems along with Sensei X Robotic Catheter System is expected to catalyze its top-line.
In an industry where companies constantly undergo fluid innovation and technological advancement, patent protection is an increasingly urgent issue. Hansen Medical continues to enhance its intellectual property portfolio, helped by stimulating research and innovation.
The robotic systems have a unique selling proposition for hospitals as it offers quality patient care while improving organizational efficiency. However, unsuccessful commercialization and a low adoption rate for the robotic systems are matters of concern. In the end, the financial results of Hansen Medical depend on the operating efficiency and successful commercialization of its robotic systems.
The company faces a tough competitive landscape with large cap market players like Boston Scientific Corporation (BSX - Analyst Report), Johnson and Johnson (JNJ - Analyst Report) and others like Stereotaxis Inc. in the U.S. But the 30 additional U.S. patents will keep direct competition at bay.
Hansen Medical holds a Zacks #3 Rank, which translates into a short-term Hold rating.