Abbott Launches Neuropathic Pain Treatment System

Company says system is superior to spinal cord stimulation

Article's Main Image

Abbott Laboratories (ABT, Financial) announced through PR Newswire Jan. 18 that it has put on the market its Proclaim DRG Neurostimulation System, which has been created to stimulate the spinal ganglion in patients chronically affected by neuropathic pain.

The dorsal root ganglion is where the cell bodies of the first neuron of the sensory pathways are, from which a fiber originates. This fiber splits into two branches, one heading to the peripheral system and the other to the spinal cord. The ganglion is an important objective in neurostimulation.

Neuropathic pain is a chronic, painful feeling that shows up as a reaction of a deterioration, or malfunction of the peripheral nervous system’s nerves (peripheral neuropathy) or central nervous system’s structures. The disease can be caused by a compression of the nerve, diabetes, some infectious diseases and even by multiple sclerosis. Because of this patients affected by neuropathic pain are treated for triggering factors and symptoms.

Neuropathic pain affects approximately 8% of Europeans with 5% affected by a severe form of the disease.

The company says that “DRG stimulation has been clinically proven to provide superior pain relief over traditional spinal cord stimulation (SCS) therapy by directly targeting the area of the body where pain occurs to improve quality of life.”

Abbott’s Neurostimulation System of the dorsal root ganglion gives patients an iPod touch mobile device that allows them to have control of the features provided by the system.

Abbott closed at $40.76 per share Jan. 18, down 14 cents, or 0.3%, from the previous trading day.

The number of shares available for trading is 1.47 billion. The price-earnings (P/E) ratio (TTM) is 27.00, and the EPS (TTM) is $1.51 per share.

Analysts recommend buying shares of Abbott, and the average target price is $46.69 per share.

During the third quarter, First Eagle Investment (Trades, Portfolio), George Soros (Trades, Portfolio) and Richard Pzena (Trades, Portfolio) reduced their positions in Abbott Labs by 57.24%, 21.26% and 5.81% while Joel Greenblatt (Trades, Portfolio) sold out his position.

Ken Fisher (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) increased their positions by 0.39% and 0.07%.

Abbott is a member of the Standard & Poor's 500 Dividend Aristocrats Index.

Disclosure: I have no positions in Abbott Laboratories.

Start a free seven-day trial of Premium Membership to GuruFocus.