Medtronic plcMDT recently announced the receipt of the U.S. FDA approval for its Enlite sensor, which is to be used with the iPro2 Professional Continuous Glucose Monitoring (CGM) system. This is expected to provide a boost to the company's growing Diabetes segment. This new system will enable the healthcare providers to gain a clearer picture of glucose control for the treatment of diabetic patients.
The iPro2 Professional CGM system is capable of recording a patient's glucose levels throughout the day, for up to six days at a stretch. The system provides physicians with unbiased information which help them to evaluate the diabetic condition of a patient and take better therapy decisions. It also includes a small data recorder, which captures glucose information automatically.
With the latest approval, the CGM system is allowed to include the Enlite sensor which is a disposable glucose sensor. Notably, this lightweight sensor is 69% smaller than the earlier version.
The FDA approval of the Enlite sensor is in line with the company's objective to offer better healthcare solutions for diabetic patients. The company expects huge market adoption of the sensor. According to it, this sensor can improve outcomes for people with diabetes as physicians need advanced insights to optimize therapy and people with diabetes need to understand the context behind glucose fluctuation.
Attractive Market Potential
We are highly encouraged by the enormous potential of the worldwide diabetic care market where growing awareness is making it a happy hunting ground for companies like Medtronic. According to Zion Market Research, the global human insulin market, which was accounted for $27 billion in 2015, is expected to reach $43.6 billion by 2021 (at a CAGR of around 8.3% over the next five years).
Over the recent past, Medtronic's Diabetes Group has seen significant progress. Last month, the company launched MiniMed 630G system with a user-friendly insulin pump and FDA approved SmartGuard technology for the treatment of diabetes mellitus in patients aged sixteen years and above. The group's year-to-date net sales were $1.368 billion, an increase of 6% from comparable period.
Zacks Rank & Key Picks
Medtronic currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector are GW Pharmaceuticals plc GWPH , NuVasive, Inc. NUVA and Quidel Corp. QDEL . All these stocks sport a Zacks Rank #1 (Strong Buy).
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