Medtronic's SureScan Wins FDA Approval - Analyst Blog


Medtronic, Inc. ( MDT ) 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 restrictions.

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 sector include NuVasive, Inc. ( NUVA ), Cardiovascular Systems Inc. ( CSII ) and Covidien plc ( COV ). While NuVasive and Cardiovascular Systems sport a Zacks Rank #1 (Strong Buy),  Covidien carries a Zacks Rank #2 (Buy).

COVIDIEN PLC (COV): Free Stock Analysis Report

CARDIOVASCLR SY (CSII): Free Stock Analysis Report

MEDTRONIC (MDT): Free Stock Analysis Report

NUVASIVE INC (NUVA): 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, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: COV , CSII , MDT , NUVA

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