Resuscitation devices maker ZOLL Medical (ZOLL) has secured approval from Health Canada to market its Propaq MD monitor/ defibrillator and Propaq M monitor to military customers and air medical operations in Canada, enabling them to provide advanced critical care to patients.
Propaq MD, which was approved in the U.S. in July 2010, is developed in collaboration with the Department of Defense and leading medical diagnostic devices maker Welch Allyn, assisted by grants from the U.S. Army Medical Research and Development Command.
The Propaq M, a monitor-only version of the PropaqMD, was cleared in the U.S. in September 2010. It was also developed under the same collaboration. Both devices have been designed to specifically address the tough demands of battlefield medicine and meet an unprecedented number of military and international standards.
The ultra-lightweight Propaq MD and Propaq M devices integrate the advanced, state-of-the-art capabilities with the well-established features of the company’s existing Propaq monitors. The Propaq M monitor has been designed to have a similar user interface as the Propaq MD, thereby offering significant cost-savings for military and air medical services.
Propaq MD has turned out to be a major boost for ZOLL Medical’s military-focused business, which has struggled in fiscal 2010 with depressed sales. Revenues from the U.S. military business climbed 32% year over year in the most recent quarter, supported by the adoption of the device. The Propaq M monitor has further broadened the company’s military product offerings, providing a major opportunity to expand its share in this market.
ZOLL Medical is a leading player in the global market for external defibrillators, which is worth more than $1 billion. In the U.S. defibrillation market, the company competes with Physio-Control, a wholly-owned unit of Medtronic (MDT), and Philips (PHG). ZOLL Medical remains committed to expanding its product range to sustain growth in this market. We currently have a Neutral recommendation on the stock.
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