Medtronic plc (NYSE:MDT) announced that it has received the CE Mark for its Cobalt and Crome portfolio of implantable cardioverter-defibrillators (ICD) and cardiac resynchronization therapy-defibrillators (CRT-D). Along with the launching of Cobalt and Crome platform, the company is also on track to make TriageHF technology available.
ICDs monitor heart rhythms and delivers corrective heart rate therapy to prevent the occurrence of a sudden cardiac arrest. Notably, CRT-Ds is a treatment option in patients with heart failure, where small electrical impulses to the lower chambers of the heart are sent to regularize the heart beat pattern and reduce patient symptoms.
Per the medical fraternity, the platform provides an opportunity of a customized approach toward defibrillator therapy, apart from providing a hassle-free patient care by means of device and patient data transmission through smartphone or tablet.
With the latest regulatory clearance, Medtronic aims to strengthen its Cardiac and Vascular Group on a global scale.
A Peek Into the Cobalt and Crome
The Cobalt and Crome are the company’s first portfolio to offer connected health with BlueSync Technology. This enables the implanted devices to establish communication with the tablet-based CareLink SmartSync Device Manager for physicians, and the MyCareLink Heart mobile app for patients.
The newest generation of implantable devices also includes certain other features like the availability of Intrinsic ATP (iATP) on Cobalt XT ICDs and CRT-Ds and the inclusion of EffectivCRT and the AdaptivCRT algorithms in the new CRT-Ds.
Significance of the Approval
Apart from the ability of the TriageHF technology to evaluate the patient’s risk of heart failure, it also can classify the patients into three risk categories (high, medium or low) by means of certain parameters. This will reduce the possibility of a worsening heart failure and subsequent hospitalization.
The TriageHF assessment tool is compatible with all the ICDs and CRT-Ds with the company’s OptiVol fluid status monitoring feature, including those currently implanted in patients.
Industry Prospects
Per a report by Mordor Intelligence, the cardiovascular devices market is expected to witness a CAGR of 6.3% between 2019 and 2024. Factors like the increasing incidence of cardiovascular diseases and growing elderly population are expected to drive the market.
Given the market potential, the approval is well-timed.
Recent Developments
Of late, Medtronic has been witnessing a slew of developments.
Medtronic received FDA’s approval in January to proceed with an investigational device exemption trial to assess the safety and effectiveness of the PulseSelect Pulsed Field Ablation (PFA) System. Further, the company launched Efficio, which is a cloud-based data management software to be used with the SynchroMed II intrathecal drug delivery system.
In January, Medtronic received FDA’s clearance Micra AV, which is the world’s smallest pacemaker with atrioventricular (AV) synchrony. Further, the company received CE Mark for its InterStim Micro neurostimulator and InterStim SureScan MRI leads, thus paving the way for the commercial sale and clinical use of the technologies in Europe.
The company also received the CE Mark for Percept PC neurostimulator, which is the only Deep Brain Stimulation system with BrainSense technology to be launched in the European Union. Also, the company acquired Stimgenics, an IL-based company offering a new-generation spinal cord stimulation (SCS) waveform — Differential Target (NYSE:TGT) Multiplexed (DTM) SCS.
Price Performance
Shares of Medtronic have gained 31.5% in the past year compared with the industry’s 11.3% growth.
Zacks Rank & Key Picks
Currently, Medtronic carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Perrigo Company plc (NYSE:PRGO) , Hill-Rom Holdings, Inc. (NYSE:HRC) and Myomo, Inc. (NYSE:MYO) .
Perrigo Company, currently carrying a Zacks Rank #2 (Buy), has a projected long-term earnings growth rate of 2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hill-Rom’s long-term earnings growth rate is estimated at 11.1%. The company currently carries a Zacks Rank #2.
Myomo’s long-term earnings growth rate is estimated at 25%. It currently carries a Zacks Rank #2.
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