Pembroke, Bermuda
Covidien Ltd. (NYSE: COV, BSX: COV) began trading today on the New York and Bermuda Stock Exchanges, marking its debut as an independent diversified healthcare products company. The business, formerly known as Tyco Healthcare, recently spun off from Tyco International.
"This is an exciting day for our company, our customers, our employees and our shareholders," said Richard J. Meelia, President and CEO of Covidien.
"Covidien is distinguished by its outstanding portfolio of well-established and highly respected global brands that are leaders in several fast-growing product categories," Mr. Meelia said. "As a premier provider of medical devices, supplies, imaging products and pharmaceuticals, we look forward to strengthening our longtime collaborative partnerships with medical professionals and institutions as we identify critical clinical needs and meet them with innovative, quality products."
With industry-leading brand names that include Autosuture, Kendall, Mallinckrodt, Nellcor, Puritan Bennett, Syneture, U.S. Surgical and Valleylab, Covidien products compete in five business segments: Medical Devices, Imaging Solutions, Pharmaceutical Products, Medical Supplies and Retail Products. Revenue in 2006 was $9.6 billion, with over one-third of Covidien's sales outside the United States. Covidien employs more than 43,000 people in 57 countries, and its products are distributed in over 130 countries.
"As an independent $9.6 billion company, we expect to drive accelerated growth through strategic initiatives that focus exclusively on healthcare and through our increased flexibility to invest in innovation," Mr. Meelia said. "In addition to significantly expanding our global sales presence, we are increasing R&D investment and funding opportunities within our family of businesses that have the greatest potential to deliver sustained profitable growth. Our goal is to establish our position as the world's leading healthcare products company and, as Covidien, we have the people, the products and the vision to succeed."
Key highlights of Covidien's five business segments follow.
Medical Devices (59% of sales)
-- The largest business segment, Medical Devices generated net sales of $5.7 billion in 2006.
-- This diversified segment is a global leader in many areas of the medical devices marketplace, with no single product accounting for more than 1% of total sales.
-- Reflecting Covidien's broad global footprint, 54% of Medical Devices sales are outside of the U.S.
-- Medical Devices is home to numerous innovations in Surgical Devices, Energy-Based Devices, Respiratory and Monitoring Solutions, and Patient Care and Safety Products. Imaging Solutions (9% of sales)
-- Imaging Solutions products generated net sales of $0.9 billion in 2006.
-- With the overarching goal of early disease diagnoses of the highest accuracy, Covidien's Imaging Solutions is a global leader in the production of Radiopharmaceuticals, Contrast Agents and Contrast Delivery Systems across multiple modalities (X-ray, MRI and nuclear medicine).
-- Following an enterprise-wide philosophy of innovation, Imaging Solutions is evolving medical imaging technology from a focus on anatomical and functional imaging to imaging at the molecular level. This shift will help clinicians diagnose, treat and monitor diseases at much earlier stages.
Pharmaceutical Products (13% of sales)
-- Net sales for 2006 reached $1.2 billion, with well-diversified product lines of Dosage Pharmaceuticals, Active Pharmaceutical Ingredients and Specialty Chemicals.
-- Covidien is the ninth largest pharmaceutical company in the U.S. (based on the number of prescriptions dispensed).
-- As the world's largest manufacturer of controlled substances, Covidien is at the forefront of patient safety and controlled substances regulation.
-- Covidien is also the global leader in the production of acetaminophen and many other pain management treatments. Medical Supplies (10% of sales)
-- With 2006 net sales of nearly $1 billion, the Medical Supplies segment is a leading provider of patient care materials.
-- Covidien's wide range of products keeps operating rooms, nursing stations and physicians' offices fully stocked with clinical materials of the highest quality.
-- Product lines include Nursing Care Products, Medical Surgical Products, Original Equipment Manufacturer Products, Incontinence Products (Europe) and Other Products.
-- Within core medical supply categories, Covidien holds #1 or #2 market share positions.
Retail Products (9% of sales)
-- Through the Retail Products segment, Covidien is a leading manufacturer in North America for private-label adult incontinence, infant care and feminine hygiene products, with 2006 net sales of $0.8 billion.
-- Covidien is the sole or multi-source supplier of private-label adult incontinence, infant care and feminine hygiene products in 17 of the top 20 U.S. retailers.
ABOUT COVIDIEN
Covidien is a leading global healthcare products company that creates innovative medical solutions for better patient outcomes and delivers value through clinical leadership and excellence. Covidien manufactures, distributes and services a diverse range of industry-leading product lines, including Surgical Devices, Energy-Based Devices, Respiratory and Monitoring Solutions, Patient Care and Safety Products, Imaging Solutions, Pharmaceutical Products and Medical Supplies. With 2006 revenue of nearly $10 billion, Covidien has more than 43,000 employees worldwide in 57 countries, and its products are sold in over 130 countries. Please visit www.covidien.com to learn more about our business.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements.
The forward-looking statements in this press release may include statements addressing the following subjects: future financial condition and operating results, economic, business, competitive and/or regulatory factors affecting Covidien's business. These are examples of factors, among others, that could cause actual results to differ materially from those described in the forward-looking statements. In addition, Covidien's historical and pro forma combined financial information is not necessarily representative of the results it would have achieved as an independent, publicly-traded company and may not be a reliable indicator of its future results. Covidien is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about these and other factors is set forth in the information statement included in the Covidien Ltd. Form 8-K filing of June 8, 2007.
Source: Business Wire (Business Wire India)