) recently announced that it got the U.S. Food and Drug
Administration's (FDA) approval to use its SureScan pacing
systems for full body magnetic resonance imaging (MRI) scans
without positioning restrictions. The system earlier got approved
by the FDA to use with MRI, subject to certain positioning
The news, however, failed to shoot the share price up. In
fact, the shares went down marginally, ending the session at
$59.15 as on Jan 22.
The muted market reaction on this positive news could be due
to the expectation of a negligible financial impact of it on the
company. Moreover, the possibility of this approval has likely
already been factored into the share prices, to an extent. This,
along with the negative sentiments in the broader market, might
have offset the enthusiasm of investors on this development.
MRI is the most advisable method for soft tissue imaging and
is vital for early detection, diagnosis and treatment. Post
approval, patients implanted with Medtronic's Advisa DR MRI or
Revo MRI SureScan pacing systems (both FDA approved) will now be
eligible to undergo MRI scans even in the chest area.
Medtronic, the first company to provide MRI compatible pacing
systems, with this approval has made the MRI scanning process
efficient and more reachable for patients with pacemakers. We are
optimistic about the worldwide adoptability of this new product
as recent data shows that around 75% of the cardiac patients with
implanted devices need to undergo MRI scan.
Currently, Medtronic has a Zacks Rank #3 (Hold). Other
top-ranked stocks worth considering in the broader healthcare
Cardiovascular Systems Inc.
). While NuVasive and Cardiovascular Systems sport a Zacks Rank
#1 (Strong Buy), Covidien carries a Zacks Rank #2
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