A little pill with a camera tucked inside is developing a bright sales picture for medical-device
The Dublin-based company's surgical-supplies business led its overall sales growth in the second quarter, rising 4% to $1.21 billion. That boost came in part from the company's $860 million acquisition of Given Imaging, an Israeli medical technology firm that has developed a “pill” with a camera that patients swallow to provide visualization of the small bowel, esophagus and colon, the company said. The deal closed in February.
“We believe (gastrointestinal medicine) is one of the most attractive specialty procedure areas. Acquiring Given will enable Covidien to significantly expand its presence in a $3 billion GI market,” said Bryan Hanson, Covidien's group president of medical devices and the U.S., said at the time the deal was announced.
Overall, Covidien second-quarter sales
rose by 3%, thanks not only to growth in its surgical-supplies division, but also robust sales in its vascular therapies and respiratory products.
Net sales hit $2.6 billion in the second quarter of 2014, compared to $2.53 billion in the same quarter in 2013, the company said. U.S sales were up 2%, with Covidien bringing in $1.27 billion in the second quarter of 2014, compared to $1.25 billion in the second quarter of last year. Sales of vascular therapies went up 1% to $409 million and sales of respiratory and patient-care products rose 2% to $976 million.
Net income edged up to $441 million in the second quarter of 2014, compared to $439 million in the same period a year ago.Follow Jaimy Lee on Twitter: @MHjlee