Resuscitation devices makerZOLL Medical’s (ZOLL) popular LifeVest wearable defibrillator has reached another key milestone as it has been reportedly prescribed to over 35,000 patients at high risk of sudden cardiac arrest (“SCA”) by their physicians. The achievement underscores the sustained adoption of the device for treating this condition.
SCA, an abrupt loss of cardiac function, is one of the major causes of unexpected deaths. According to the American Heart Association, more than 700 people die from this condition each day in the U.S. Early defibrillation raises the chance of survival from just 5% to over 50%.
LifeVest is a lightweight device which is worn outside the body (rather than implanted in the chest) by patients at risk of SCA. The device continuously monitors the heart with electrodes (electric conductors) to detect life threatening hearth rhythms. On detection of an abnormal rhythm, LifeVest sends an electric shock to the heart to restore its normal rhythm.
The LifeVest defibrillator business, which has been ZOLL Medical’s lifeblood, continues to grow at a healthy quarterly run rate with revenues rocketing 50% year over year in the most recent quarter, benefiting from increased awareness of the product, associated sales force enhancements and wide reimbursement coverage.
ZOLL Medical is a leading player in the global market for external defibrillators, which is worth more than $1 billion. The company is expanding its presence in the international markets, representing a major impetus for growth.
In the U.S. defibrillation market, ZOLL Medical competes with Physio-Control, a wholly-owned unit of Medtronic (MDT), and Philips (PHG). The company remains committed to expanding its product range to sustain growth in this market.
ZOLL Medical’s solid fundamentals, its broad product range, healthy revenue/margin mix and upbeat prospect for LifeVest remain encouraging. Moreover, its significant international presence should also drive growth.
However, the company operates in a highly competitive defibrillation market. Moreover, the U.S and the North American emergency medical services (“EMS”) market remains sluggish, in part, due to budget constraints.
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