Investing.com -- Shares of Medtronic plc (NYSE:MDT) climbed 3% after the company announced that the Centers for Medicare & Medicaid Services (CMS) has initiated a national coverage analysis (NCA) for its Symplicity Spyral Renal Denervation System, a device designed to treat patients with hypertension.
The announcement was made by Medtronic, a global leader in healthcare technology, stating that the CMS decision was a response to Medtronic's request to support Medicare beneficiary access to the Symplicity Spyral system. The system is currently used in the Symplicity blood pressure procedure, which is a minimally invasive treatment option for hypertension. The CMS's action is seen as a positive step toward establishing a national Medicare coverage policy for renal denervation procedures.
Medtronic's senior vice president, Jason Weidman, expressed appreciation for CMS's efforts in expediting access to breakthrough technologies like Symplicity Spyral. The company looks forward to continuing its partnership with CMS in developing a national coverage policy. The expected completion date for the national coverage analysis is October 11, 2025, but until then, Symplicity blood pressure procedures will be evaluated for coverage based on medical necessity for individual Medicare patients.
Citi analyst Joanna Wuensch maintained a Neutral rating and $92.00 price target on Medtronic, highlighting the significance of the CMS's announcement as a step in the right direction after Medtronic's clinical trial journey and the recent Transitional Pass-Through status granted in November. Wuensch noted the potential revenue opportunity for the Symplicity blood pressure procedure, mentioning that 1% penetration of the target segment could represent over $1B in revenue.
Furthermore, TD Cowen analyst Joshua Jennings commented on the development, stating, "Today's announcement marks an important development in MDT's ongoing efforts to provide access to renal denervation to Medicare beneficiaries." Jennings pointed out that while the final national coverage determination (NCD) is pending, individual Medicare patients can still be evaluated for coverage based on medical necessity.
Investors appear to be responding positively to the news, as the potential for expanded Medicare coverage could lead to increased adoption and revenue for Medtronic's Symplicity Spyral system.
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