Healthcare Business News

Covidien gets healthy sales boost with camera pill

By Jaimy Lee
Posted: April 25, 2014 - 1:15 pm ET

A little pill with a camera tucked inside is developing a bright sales picture for medical-device and supply company Covidien.

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.

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“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

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