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Medtronic Launches IN.PACT Admiral in Japan, Boosts APV Arm

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Medtronic plc (MDT - Free Report) reached a new milestone with respect to its Aortic & Peripheral Vascular (APV) business. The company recently announced the commercial launch of IN.PACT Admiral Drug-Coated Balloon (DCB) in Japan.

This follows the company’s receipt of regulatory approval for IN.PACT Admiral DCB from the Japanese Ministry of Health, Labour and Welfare (“MHLW”) in 2017. The company’s IN.PACT Admiral DCB gained approval for treating peripheral artery disease (PAD) in the upper leg, particularly thigh (superficial femoral arteries and behind the knee (popliteal arteries). Further, the MHLW also granted reimbursement approval for IN.PACT Admiral in December 2017.

Market Prospects

Medtronic’s strategy to gain traction in the peripheral vascular sub-segment seems to be aligned with data provided by MarketsAndMarkets. Per the report, the interventional cardiology & peripheral vascular devices market is expected to witness a CAGR of 7.1% to reach $31.47 billion from 2016 to 2021.

We believe that the high incidence of peripheral artery disease due to unhealthy lifestyle and aging population, penetration by the companies in the untapped markets, rising need for minimally-invasive angioplasty procedures, technological advancements and increasing awareness among people will continue driving global acceptance for this technology. In view of these encouraging factors, we believe that the company’s development regarding IN.PACT Admiral DCB is strategic and it is expected to broaden its customer base.

A Glimpse of APV Business

Interestingly, Medtronic’s revenues from the APV division improved 8.8% year over year (up 4.8% at constant exchange rate) in fourth-quarter fiscal 2018. Moreover, the Peripheral Vascular business grew on a low-single digit. The latest development should boost the company’s performance in this segment.

Given the huge market prospects for the peripheral vascular sub-segment, Medtronic has been consistently trying to strengthen its portfolio. In this regard, the company announced the receipt of the FDA approval for 200mm and 250mm lengths of the IN.PACT Admiral DCB for treating long superficial femoral artery (SFA) lesions in patients with PAD in June 2018. Per the company, in April, Medtronic received approval to treat SFA lesions of up to 360mm in length.

We note that the IN.PACT Admiral DCB received the FDA approval in December 2014 to treat superficial femoral and popliteal arteries. Moreover, it is commercially available in Europe since its receipt of the CE mark approval in 2009.

Share Price Movement

Medtronic has been gaining investors’ confidence on consistent positive results. Over the past three months, the company’s share price has outperformed its industry. The stock has gained 6.3% in comparison to the industry’s 3.9% increase.

 

Zacks Rank & Key Picks

Medtronic currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the broader medical space are Amedisys, Inc. (AMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Inogen, Inc. (INGN - Free Report) .

Amedisys’s expected long-term earnings growth rate is 18.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #2 (Buy).

Inogen’s long-term expected earnings growth rate is 24.5%. The stock carries a Zacks Rank #2.

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