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Medtronic (MDT) Gets Health Canada License for GI Genius Module

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Medtronic plc’s (MDT - Free Report) subsidiary Medtronic Canada ULC recently received a Health Canada license for the GI Genius intelligent endoscopy module. The GI Genius is a computer-aided detection (CADe) system that employs artificial intelligence (AI) to highlight colon regions that may have visual characteristics associated with various forms of mucosal abnormalities.

It is noteworthy to mention that Medtronic is the exclusive worldwide distributor of the GI Genius module, developed and manufactured by Cosmo Pharmaceuticals.

Few Words on GI Genius

The GI Genius module utilizes advanced AI to highlight the presence of suspected precancerous lesions in real-time with a visual marker. The GI Genius module, which acts as a second observer, helps improve the adenoma detection rate (ADR). The flexibility of this platform allows seamless integration into different clinical workflows, facilitating clinical decision-making and enhancing care quality by reducing variability.

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The utilization of the GI Genius module in studies has resulted in a 14% absolute increase in ADR versus colonoscopy alone for both flat (42% increase) and polyploid (36% increase) lesions. This demonstrates greater accuracy to help reduce the risk of interval cancer between colonoscopies.

New Module to Aid in Fight Against Colorectal Cancer

The GI Genius module is compatible with any colonoscope video and provides physicians with a powerful tool to fight colorectal cancer.

The integration of AI into gastroenterology practices could serve as a crucial component in colorectal cancer prevention. The use of AI to improve ADR can improve the quality of colonoscopies, thereby enhancing diagnosis and outcomes for colon cancer patients.

Per Medtronic management, GI Genius is the only colonoscope-agnostic AI platform intended to improve polyp detection. This technology is expected to help save lives by bolstering colon cancer detection rates.

Industry Prospects

Per a report published in Fact.MR, the global colorectal cancer diagnostics market is expected to see a CAGR of 8.5% during 2021-2031. Factors such as the rising incidence of colorectal cancer, the surge in the geriatric population, growing awareness, rising research & development on various diagnostic and treatment solutions, and the introduction of effective diagnostic instruments are expected to drive the market.

Given the substantial market prospects, the recent authorization of the GI Genius module for colorectal cancer testing in Canada seems well-timed.

Notable Developments

In November 2021, Medtronic gained FDA 510 (k) clearance for its PillCam Small Bowel 3 HOME (SB3) system for remote endoscopy procedures. The latest approval for PillCam further allows patients to get gastrointestinal care in the comfort of their homes.

In October 2021, the company received CE Mark for the Hugo robotic-assisted surgery (RAS) system, allowing its sale in Europe. The Hugo RAS system has attained CE Mark for urologic and gynecologic procedures.

Share Price Performance

The stock has underperformed its industry over the past year. It has declined 6.1% compared with the industry’s 5.1% fall.

Zacks Rank and Key Picks

Currently, Medtronic carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Varex Imaging Corporation (VREX - Free Report) , Omnicell, Inc. (OMCL - Free Report) and NextGen Healthcare, Inc. .

Varex, carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 5%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 115.3%. You can see the complete list of today’s Zacks #1 Rank  stocks here.

Varex has outperformed the industry it belongs to in the past year. VREX has gained 75.6% versus the industry’s 5% fall.

Omnicell, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 16%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 17.4%, on average.

Omnicell has outperformed its industry over the past year. OMCL has gained 63.7% against the 38.5% industry decline.

NextGen, sporting a Zacks Rank #2, has a long-term earnings growth rate of 8.5%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 16%.

NextGen has outperformed its industry over the past year. NXGN has declined 12.3% versus the industry’s 38.5% fall.


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