On 08 May 2009, Covidien Ltd. (Covidien) announced its intentions to acquire VNUS Medical Technologies, Inc. (VNUS) for approximately US$440 mn, net of cash acquired. The acquisition is inline with the company's expectations to expand inorganically through strategic acquisitions. We believe this acquisition will strengthen Covidien's presence in the vascular product market. Consequently, our positive outlook for the company remains unchanged....

Covidien launched new products in most of its segments during the past 9 months. The company launched Versaport Bladeless Trocars globally and obtained US Food and Drug Administration (FDA) approval to market SILS Port multiple Instrument Access Port (used for laparoscopic surgeries through single incision) in the medical devices segment during 3Q 08. The company has also launched RapidVac Smoke Evacuator (used to filter airborne contaminants from the operating…

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Covidien Ltd. (Covidien) reported strong sales growth, in-line with our estimate in FY 2008, driven by strong demand in all segments. Management expects sales to be negatively impacted by the foreign exchange trends in FY 2009. However, increasing demand and wider acceptance of newly launched products in the Medical Device and Pharmaceutical Products segments…