Abbott (ABT - Free Report) , providing an impetus to the Vascular business in the United States, recently announced the receipt of FDA approval for XIENCE Sierra. Notably, XIENCE Sierra is the latest in the family of XIENCE everolimus-eluting coronary stent system.
XIENCE Sierra in Details
XIENCE Sierra is equipped with a thinner profile, enhanced flexibility, longer length and small diameter. Further, this advanced stent and delivery system effectively aids in treating complex cases, involving multiple or totally-blocked vessels, by providing increased flexibility and precision to the doctors.
Per management, about 70% of the reported cases involve patients suffering from complex blockages. We believe, this FDA approval will aid in driving top-line contributions from Abbott’s Vascular business.
Vascular Business at a Glance
Recently, Abbott’s Vascular business has continued to deliver stable top-line performance. In the last reported quarter, this segment’s sales improved 5.2% on a reported basis.
Notably, the Vascular business accounted for 27% of total revenues in the broader Medical Device segment. We encouragingly note, under Vascular business, Abbott has been on a slew of developments in regards with its XIENCE Sierra coronary stent system. The company was awarded national reimbursement for XIENCE Sierra from Japan's Ministry of Health Labour and Welfare in May, following the receipt of regulatory approval in April.
Abbott has also been getting positive responses for the XIENCE Sierra coronary stent system post its launch in Europe in late last year.
Per Grand View Research, we can safely conclude that this development will help Abbott cash in on the opportunities in the coronary stents market. According to the report, the global coronary stents market is expected to witness a CAGR of roughly 6.2% between 2013 and 2024.
Share Price Movement
Over the past six months, Abbott has been outperforming its industry. The stock has gained 10.1% compared with the industry's increase of 6%.
Zacks Rank & Stocks to Consider
Abbott currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical sector are Intuitive Surgical (ISRG - Free Report) , Illumina, Inc (ILMN - Free Report) and Amedisys, Inc. (AMED - Free Report) . While Intuitive Surgical and Illumina sport a Zacks Rank #1 (Strong Buy), Amedisys carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical has an expected long-term earnings growth rate of 12.1%.
Illumina has an expected long-term earnings growth rate of 20%.
Amedisys has an expected long-term earnings growth rate of 17.5%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>