Covidien plc (COV) succeeded again in a patent related lawsuit brought by Applied Medical Resources, Inc. against the company. In May 2011, Applied Medical sued Covidien for selling some trocar products that infringe its patent.
On Aug 27, the United States Court of Appeals for the Federal Circuit ruled in favor of Covidien, stating that its trocar products do not infringe Applied Medical’s patent, which is the same as the previous lower court’s ruling.
Since 2000, this is the fifth patent infringement lawsuit brought by Applied Medical against COV relating to trocars seals. However, Covidien received clean chits in all the cases.
Recently, Covidien opened its first research & development (R&D) and training & education center in Korea that covers an area of more than 6,000 square meters. The center known as Covidien Center of Innovation Korea or CCI Korea intends to raise awareness of various diseases and offer opportunities for enhancing healthcare professionals’ capabilities by providing access to a full-range of COV’s medical devices.
The facility entailed an investment of $21 million over a three year period. It houses a surgical lab with 11 operating stations, an intensive care unit (:ICU) lab with two ICU stations and a human patient simulator, and an auditorium with seating capacity for 112 people.
Covidien posted flat adjusted earnings per share from continuing operations of 91 cents for the third quarter of fiscal 2013, on a year-over-year basis. However, earnings beat the Zacks Consensus Estimate by a penny.
Revenues in the quarter increased 3% (up 5% in constant currency) to $2,578 million, driven by higher sales in the Medical Devices segment. Revenues were slightly below the Zacks Consensus Estimate of $2,587 million.
On a geographic basis, revenues in the U.S. market decreased 3% to $1,299 million while international revenues climbed 10% (up 14% in constant currency) to $1,279 million, driven by emerging market growth.
Currently, COV carries a Zacks Rank #3 (Hold). While we remain on the sidelines regarding the company, other companies that are performing well include PLC Systems Inc. (PLCSF) and Alere Inc. (ALR), both with a Zacks Rank #1 (Strong Buy), and Advaxis Inc. (ADXS) with a Zacks Rank #2 (Buy).
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