Bermuda-based health care product manufacturer Covidien Ltd. yesterday announced the launch of a new venture capital unit to invest in innovative health-related technology.

Covidien Ventures' role will be to invest in areas of strategic importance to Covidien, with the goal of "providing early exposure to innovative technologies and enhancing market intelligence in health care products", the company said in a statement released yesterday.

The new unit will be managed by Daniel Sheehan, vice-president of corporate venture capital, who recently joined Covidien from Affinity Capital Management.

Mr. Sheehan, who has 20 years of experience in venture capital, business development and investment banking, will direct the new fund and lead the investment process for Covidien.

"Covidien Ventures will allow us to make early-stage investments and investigate emerging technologies in the health care areas of interest to Covidien," said Amy Wendell, senior vice-president, corporate strategy and business development.

"This exposure could potentially lead to our acquiring technology, intellectual property or start-up companies to expand our product portfolio and accelerate business growth."

Covidien has more than 42,000 employees worldwide in 57 countries, and its products are sold in more than 130 countries.