Medtronic's Endurant II Now in US - Analyst Blog


Leading medical devices player , Medtronic ( MDT ) has strengthened its Endovascular portfolio with the US launch of Endurant II, the next generation AAA stent graft system, subsequent to its approval from the US Food and Drug Administration ("FDA") recently. Endurant II is designed for minimally invasive treatment of abdominal aortic aneurysms ("AAA") through endovascular repair, which is an alternative to major surgery.  

The company will also showcase the device at a conference near Washington DC, currently underway. AAA is a condition in which the aorta bulges or weakens and can rupture if left untreated often resulting in sudden death.

During the most recent quarter, revenues from Endovascular & Peripheral recorded robust 10% growth based on the success of the Endurant abdominal stent graft around the globe, including Japan where it was recently launched. While Endurant II is performing well in Europe (CE Mark approved December 2011), its recent launch in the US should enable the company to garner additional revenues in the quarters ahead.

The FDA approval of the Endurant II AAA stent graft is based on positive results of the US clinical study. Data demonstrated strong clinical performance and efficacy in long-term follow-up.

Acknowledging the challenges at play in its core segments, Medtronic is in the process of launching several new products that are likely to drive growth in this difficult scenario.

The company received FDA approval for Resolute Integrity drug eluting stent ("DES") in February 2012. With this approval Resolute became the first DES to be suitable for patients even with diabetes, a condition that complicates the treatment. Successful launch of the Resolute DES led to doubling of DES market share in the US on a sequential basis. Continued expansion in the US market along with prospective launch of Resolute in Japan should further bolster the company's market share.

Many of the recently launched products are contributing significantly to the top line. Besides, the company is increasing its focus on the emerging markets. This strategy is also being followed by its peers such as Boston Scientific ( BSX ) and St Jude Medical ( STJ ).

Over the long term we have a 'Neutral' recommendation on the stock. Our recommendation corresponds to a Zacks #3 Rank ("Hold") held in the short term.

BOSTON SCIENTIF (BSX): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report

ST JUDE MEDICAL (STJ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BSX , MDT , STJ

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