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Medtronic (MDT): Valiant Captivia Data Positive at Three Years

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Medtronic plc (MDT - Free Report) recently unveiled favorable three-year clinical outcome demonstrating the durability and clinical efficacy of its Valiant Captivia Thoracic Stent Graft System in patients with acute complicated Type B aortic dissection. This development should help Medtronic further strengthen its position in the multi-billion dollar global interventional cardiology and peripheral vascular devices market.

The study data gathered on 50 patients in the Valiant Captivia Dissection IDE Trial, incorporated outcomes of three-year patient follow-up. It was presented at a late-breaking trial session at Vascular Interventional Advances (VIVA).

In this regard, we note that acute aortic dissection is a serious condition when the inner layer of the aorta tears, blood surges through the tear leading to detachment of the inner and middle layers of the aorta. This dissected aorta leads to aorta rupture or malperfusion of the aorta causing high morbidity and mortality. A type B dissection is a tear located in the descending aorta.

However, evidence shows that patients suffering from Type B aortic dissections can be successfully treated with thoracic endovascular aortic repair (TEVAR). The latest data in fact demonstrated positive outcomes over the last three years in a very challenging patient population who have used the Valiant Captiviasystem.

We note that so far more than 70,000 patients have been successfully treated with Medtronic’s Valiant stent graft system, which demonstrates this device’s already proven efficacy. The recently announced three-year results add a feather to that cap.

According to Markets and Markets research firm’s estimate, the interventional cardiology and peripheral vascular devices market will reach a worth of $26.72 billion by 2019, reflecting CAGR growth of 7.4%. We expect Medtronic to capture larger share of this market potential, backed by the favorable results from the study mentioned above.

Against this promising backdrop, we believe that the latest favorable study results will boost Medtronic’s profits from the aortic business.

Zacks Rank

Currently, Medtronic has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader medical sector are Align Technology Inc. (ALGN - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Derma Sciences Inc. .

Align Technology has gained 48.9% year to date, much better than the S&P 500’s gain of 6.52% over the same period. The estimate revision trend for the current year remains impressive with 9 estimates moving higher over the past two months, compared to no downward movement. The stock currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Merit Medical Systems, with a Zanks Rank #2, has an impressive long-term earnings growth rate of 12.5%. The stock recorded a gain of 30.6% year to date as compared to the S&P 500’s gain of 6.52% over the same time frame.

Derma Sciences also carries a Zacks Rank #2. The stock’s current-year earnings growth rate remains at 94.5%, much higher than the Industry’s growth rate of 7.6%.

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