) received the European CE Mark approval for its latest spine
device ReDuX(TM) Plier. The company also announced the European
launch of this instrument.
After years of sluggish spine sales, the European approval for
this surgical instrument came as a major boost for the company's
spinal orthopedic business. According to the company, this first
of its kind device for a more controlled osteotomy closure for
people with a severe form of spinal curvature is expected to be
largely accepted in the European community.
This ReDuX Plier is an advanced instrument to perform
Osteotomiesor specifically pedicle subtraction osteotomy (PSO) in
spinal deformity surgeries. PSO is a complex surgical procedure
for sagittal imbalance. It is a condition where the back loses
the characteristic S-shape that allows the skeleton to resist
gravity and keeps people standing upright. These patients can
live in considerable pain, unable to stand or walk properly.
Medtronic's Biologics business suffered from continuous
declines in the sales of Infuse (following the publication in
The Spine Journal).
In the last reported quarter, Spine revenues fell 1% year over
year (flat at CER) along with a decline in revenues from BMP
(bone morphogenetic protein) (comprising Infuse bone graft
[InductOs in the European Union] sales) and BKP (balloon
This decline will continue until results from the Yale study
are available. Any unfavorable data from this study will be a
major blow for this product line. At CER, revenues from Core
Spinal remained flat at $671 million. However, excluding revenues
from BKP, Core Spinal grew in the low-single digit at CER.
However, it is encouraging to note that, after adjusting for
bulk sales,on a sequential basis this business has been
relatively stable throughout the last fiscal. Currently, the
company is waiting for the publication of systematic reviews of
Infuse commissioned by Yale University's Open Data Access
Project. According to Yale's public communication, the results
are anticipated to be published by the end of June. Given this
backdrop, we expect the new addition to garner incremental
While spine revenues maintained its sluggish trend, the
company posted overall strong results for the fourth quarter of
fiscal 2013. After several quarters of weakness, the company's
CRDM franchise showed signs of improvement. Sales improvement for
Medtronic's neuromodulation business was also encouraging. The
company is enjoying market share gain on the back of the Resolute
Integrity DES for the treatment of coronary artery disease. The
quarterly results reflect positive momentum as Medtronic seeks to
recover after a string of dull quarters.
Medtronic is currently trying every means to boost growth.
This includes penetrating the international markets, expansion of
portfolio and restructuring initiatives, which should benefit the
company over the long term.
Medtronic currently carries a Zacks Rank #3 (Hold). Other
medical sector stocks that warrant a look are
Myriad Genetics Inc.
Natus Medical Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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