Leading medical devices player
) 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
St Jude Medical
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.
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