Medical device major
) recently expanded its unrivalled portfolio of endovascular
aortic repair in the domestic market. The company won the
regulatory approval from the U.S. Food and Drug Administration
(FDA) for its Endurant II Aorto-Uni-Iliac (AUI) Stent Graft
System. At the same time, Medtronic gained the 510(k) clearance
from FDA for its Sentrant Introducer Sheath. Currently, the
products are being featured at the Society for Vascular Surgery's
"Vascular Annual Meeting" in San Francisco.
In April, Medtronic won the European CE (
) Mark approval for the Sentrant Introducer Sheath. The company's
effort on portfolio expansion, especially for its mainstay
Cardiac & Vascular Group, is encouraging. We are impressed
with Medtronic's efforts to augment/diversify its product
According to the company, this new Sentrant Introducer Sheath
will complement its superior portfolio of stent grafts for the
endovascular repair of aortic aneurysms and related conditions,
thereby expanding Medtronic's accessories toolkit for
endovascular aortic interventions.
Specifically, the Sentrant Introducer Sheath will be used
together with Medtronic's Endurant II AAA and Valiant Captivia
Stent Graft Systems. It also complements other comparable devices
for endovascular repair. This new device will be available in
various sizes to adjust to different anatomies.
On the other hand, the Endurant II AUI Stent Graft System is the
only AUI device with FDA approval for the elementary endovascular
treatment in the U.S. This specifically holds true for the
medical care of patients whose anatomy restrains the application
of a bifurcated device for the medical care of infrarenal
abdominal aortic or aorto-iliac aneurysms.
Like other products in the clinically proven Endurant product
line, the new stent graft is effective in treating patients who
present with difficult access. The characteristic features of
Endurant II AUI Stent Graft go to ensure improved standards of
Following the stronger results for the fourth quarter of fiscal
2013 which topped the Zacks Consensus Estimate, the stock seems
to be on an uptrend. After several quarters of weakness, the
company's CRDM franchise showed signs of improvement. Sales
improvement for Medtronic's neuromodulation and endovascular
business was also encouraging. The quarterly results reflect
positive momentum as the company looks to rebound after a string
of dull quarters.
Nonetheless, looming headwinds such as unfavorable currency
impact and macroeconomic overview keeps us on the sidelines.
Moreover, Medtronic's spine sales continued its sluggish trend.
The company should also be aware of similar portfolio advancement
made by other stalwarts such as
Boston Scientific Corporation
St. Jude Medical
Medtronic carries a Zacks Rank #3 (Hold). While we have a neutral
stance on the company, other stocks in the medical device space
), carrying a Zacks Rank #1 (Strong Buy) warrants a look.
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