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Abbott (ABT) Launches Radiofrequency Ablation Device in U.S.
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Abbott Laboratories (ABT - Free Report) recently announced the U.S. launch of its IonicRF Generator, which is a radiofrequency ablation device that uses heat to target specific nerves in order to block pain signals from reaching the brain. Notably, it is the latest FDA-cleared device from the company to deliver a non-surgical minimally invasive treatment for pain management in the nervous system.
For investors’ note, the latest device is the first radiofrequency ablation device developed by the company and is currently approved for use in the United States and Europe.
With the launch of the IonicRF Generator, Abbott aims to expand its Neuromodulation portfolio by strengthening its Medical Devices business.
Significance of the Launch
Abbott's IonicRF is an advanced device platform that targets specific nerves to block pain signals from reaching the brain. Per the medical fraternity, this is one of the most impressive aspects of the therapy as the device effectively targets pain in several discrete areas of the body. Further, they believe that since every patient’s source of pain is unique, it is important to have multiple options available to customize treatment as per requirement.
Notably, studies on radiofrequency ablation treatment have demonstrated that pain relief following a single session can last from six to 12 months. Radiofrequency ablation has been used for the treatment of lower back pain and Sacroiliac joint (buttocks) pain, which could not be effectively treated with conservative treatments such as physical therapy, injections or medication.
Industry Prospects
Per a report by Grand View Research, the global radiofrequency ablation devices market was valued at $2.8 billion in 2018 and is projected to reach $6.7 billion by 2026 at a CAGR of 11.6%. Factors like growing preference for minimally invasive surgeries and rising elderly population are expected to drive the market.
Given the market potential, the launch of Abbott’s IonicRF device seems to have been timed well.
Recent Developments in Medical Devices
Of late, Abbott has been witnessing a slew of developments in its Medical Devices business.
The company, this month, received the CE Mark and approval in Australia for its new EnSite X EP System and is launching the system throughout Europe and Australia.
Abbott, during its earnings release in October, confirmed that the Medical Devices business sales improved both on a reported as well as organic basis. According to the company, cardiovascular and neuromodulation sales growth and procedure volumes improved significantly as demand returned to more normalized levels.
The same month, Abbott announced new late-breaking data from two studies in the company’s XIENCE Short dual antiplatelet therapy (“DAPT”) program. The results illustrated that there was no difference between shorter courses of treatment with DAPT compared with 12 months of DAPT following implantation of the XIENCE drug-eluting stent in patients who are at a high risk of bleeding.
The company received the CE Mark for its fourth-generation MitraClip Transcatheter Mitral Valve Repair System, MitraClip G4, in September. The same month, Abbott initiated its LIFE-below-the-knee (“BTK”) clinical trial to assess the safety and effectiveness of its new Esprit BTK Everolimus Eluting Resorbable Scaffold System.
Price Performance
Shares of the company have gained 33.1% in the past year compared with the industry’s 6.5% rise and the S&P 500’s 14.7% growth.
Zacks Rank & Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Align Technology, Inc. (ALGN - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2 (Buy).
Align Technology’s long-term earnings growth rate is estimated at 18.3%. It currently carries a Zacks Rank #2.
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Abbott (ABT) Launches Radiofrequency Ablation Device in U.S.
Abbott Laboratories (ABT - Free Report) recently announced the U.S. launch of its IonicRF Generator, which is a radiofrequency ablation device that uses heat to target specific nerves in order to block pain signals from reaching the brain. Notably, it is the latest FDA-cleared device from the company to deliver a non-surgical minimally invasive treatment for pain management in the nervous system.
For investors’ note, the latest device is the first radiofrequency ablation device developed by the company and is currently approved for use in the United States and Europe.
With the launch of the IonicRF Generator, Abbott aims to expand its Neuromodulation portfolio by strengthening its Medical Devices business.
Significance of the Launch
Abbott's IonicRF is an advanced device platform that targets specific nerves to block pain signals from reaching the brain. Per the medical fraternity, this is one of the most impressive aspects of the therapy as the device effectively targets pain in several discrete areas of the body. Further, they believe that since every patient’s source of pain is unique, it is important to have multiple options available to customize treatment as per requirement.
Notably, studies on radiofrequency ablation treatment have demonstrated that pain relief following a single session can last from six to 12 months. Radiofrequency ablation has been used for the treatment of lower back pain and Sacroiliac joint (buttocks) pain, which could not be effectively treated with conservative treatments such as physical therapy, injections or medication.
Industry Prospects
Per a report by Grand View Research, the global radiofrequency ablation devices market was valued at $2.8 billion in 2018 and is projected to reach $6.7 billion by 2026 at a CAGR of 11.6%. Factors like growing preference for minimally invasive surgeries and rising elderly population are expected to drive the market.
Given the market potential, the launch of Abbott’s IonicRF device seems to have been timed well.
Recent Developments in Medical Devices
Of late, Abbott has been witnessing a slew of developments in its Medical Devices business.
The company, this month, received the CE Mark and approval in Australia for its new EnSite X EP System and is launching the system throughout Europe and Australia.
Abbott, during its earnings release in October, confirmed that the Medical Devices business sales improved both on a reported as well as organic basis. According to the company, cardiovascular and neuromodulation sales growth and procedure volumes improved significantly as demand returned to more normalized levels.
The same month, Abbott announced new late-breaking data from two studies in the company’s XIENCE Short dual antiplatelet therapy (“DAPT”) program. The results illustrated that there was no difference between shorter courses of treatment with DAPT compared with 12 months of DAPT following implantation of the XIENCE drug-eluting stent in patients who are at a high risk of bleeding.
The company received the CE Mark for its fourth-generation MitraClip Transcatheter Mitral Valve Repair System, MitraClip G4, in September. The same month, Abbott initiated its LIFE-below-the-knee (“BTK”) clinical trial to assess the safety and effectiveness of its new Esprit BTK Everolimus Eluting Resorbable Scaffold System.
Price Performance
Shares of the company have gained 33.1% in the past year compared with the industry’s 6.5% rise and the S&P 500’s 14.7% growth.
Zacks Rank & Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Align Technology, Inc. (ALGN - Free Report) .
Hologic’s long-term earnings growth rate is estimated at 17.4%. The company presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2 (Buy).
Align Technology’s long-term earnings growth rate is estimated at 18.3%. It currently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>