Positive Data on Given's Products - Analyst Blog
21 May 2012 - 10:45PM
Zacks
Specialist manufacturer of
gastrointestinal products, Given Imaging Ltd.
(GIVN) confirmed the success of its PillCam ESO to support triage
patients with upper gastrointestinal bleeding (UGIB). It also
revealed details pertaining to Bravo Systems, indicating that it
can increase patient pH monitoring up to four days for those who
suffer from gastroesophageal reflux disease (GERD). The
announcements are supported by clinical trials and data from
reputed universities across the globe.
According to Given Imaging’s Chief
Medical Officer, the new studies reassert the efficiency of Bravo
pH monitoring and PillCam ESO in diagnosing, monitoring and
triaging different kinds of esophageal ailments. The prolonged
monitoring of Bravo Systems will provide meaningful feedback about
patients’ condition and their daily lives. This will enable doctors
to adjust the diet and drug regimens of their patients
accordingly. On the other hand, PillCam ESO can detect
malignant lesions in the upper gastrointestinal tract. These
lesions can result in fatal blood loss if they remain undetected.
PillCam ESO holds an advantage over gastroscopy as it can identify
lesions undetected by gastroscopy.
Given Imaging enjoys worldwide
market share of 85% and domestic market share of 95%. Even though
the company reported first quarter revenue of $41.8 million (a 5%
increase from the prior year quarter), it has the scope to cater to
a multi-billion dollar market. The company also produces PillCam
SB, a capsule endoscope for the imaging of the small intestine. Its
PillCam SB has the highest potential as 85% of the domestic market
remains un-penetrated and the international market grows at
18%-20%. However, with an aging population and increasing
prevalence of heartburn and other acid reflux symptoms, PillCam ESO
is expected to gain a strong foothold and leverage sales in the
world market.
The company’s Bravo Systems is a
benchmark in the field of pH monitoring. Bravo Systems earlier
collected 48 hours of pH data for heartburn symptoms. The increased
96-hour monitoring time will allow clinicians to treat patients
effectively.
The complementary product portfolio
of Given Imaging is accretive to top and bottom-line growth. With
supportive statistics and impending commercialization of the
PillCam COLON, the company is expected to meet its outlook of
stable double-digit growth in the current year. Its competitors
providing medical imaging solutions include Olympus
Corporations (OCPNY), GE Healthcare- a division of
General Electric (GE) and the privately-owned
FUJIFILM Holdings Corporation.
Given Imaging currently retains a
Zacks #1 Rank, which translates into a short-term ‘Strong Buy’
rating.
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