Medtronic Wins FDA Nod For Azure Pacemakers, Grows In CVG

Medtronic plc (NYSE:MDT) announced the receipt of FDA approval and commercial launch of its portfolio of Azure pacemakers with BlueSync technology. According to the company, this technology enables secure, automatic and wireless remote monitoring via the Medtronic CareLink Network. Security controls implemented and validated on BlueSync-enabled devices include access restrictions to protect integrity of device functionality and end-to-end encryption to protect patient data.

The Azure XT MRI and Azure S MRI pacemakers are available in single chamber and dual chamber models. These pacemakers offer improved longevity (27% longer than its predecessor) and better ability to detect and reduce atrial fibrillation (AF). AF, one of the most common heart rhythm disorders, is irregular or rapid beating of the heart’s upper chambers. With these pacemakers, patients will probably need lesser device replacement.

The Azure XT pacemaker features the Medtronic Reactive ATP (atrial-based antitachycardia pacing) algorithm, which was proved to slow the progression of AF in implanted cardiac devices patients.

The company is consistently trying to improve its Cardiac Rhythm and Heart Failure division —part of Cardiac & Vascular Group (CVG). In line with this, Medtronic came up with favorable study results on Reactive ATP (atrial-based antitachycardia pacing) therapy in June. Reactive ATP) therapy slows the progression of AF in patients with implanted cardiac devices. A couple of achievements from the month of May are worth a mention. Medtronic received FDA approval for a portfolio of quadripolar cardiac resynchronization therapy-pacemakers (CRT-Ps) that improve therapy delivery for patients with heart failure. Medtronic also announced favorable results from a clinical study which showed that Insertable Cardiac Monitors (ICM) detected a high incidence of AF in patients previously undiagnosed but suspected to be at high-risk for AF and stroke.

According to a report by Allied Market Research, the global cardiac monitoring & cardiac rhythm management market is expected to reach a worth of $32,216 million by 2022, at a CAGR of 7.6%. Looking at the bountiful opportunities in this niche space, we believe the company’s latest development is strategic.

Over the last three months, Medtronic has underperformed the broader industry. Per the latest share price movement, the company has lost 3.5%, as against the broader industry’s 3.6% gain.

Estimate Revision Trend

The estimate revision trend has been favorable for the company. For the current year, six estimates moved north compared with no movement in the opposite direction over the last month. As a result, the Zacks Consensus Estimate for the full year has risen to $4.70 per share from $4.64.

Zacks Rank & Key Picks

Medtronic carries a Zacks Rank #4 (Sell).

A few better-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 80.4% in a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 170.5% over a year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 91.6% in a year.

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