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Medtronic's New Data for HVAD System to Boost CRHF Segment

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Medtronic plc (MDT - Free Report) recently announced positive results of an analysis using data from both the ENDURANCE1 and ENDURANCE Supplemental2randomized trials. The analysis was conducted to study the impact of severity of stroke in patients receiving Medtronic’s HeartWare HVAD System as destination therapy. Notably, the results demonstrated that targeted blood pressure management aided in decreasing serious strokes.

Notably, the HVAD System is a left ventricular assist device (LVAD) which assists in increasing the quantity of blood circulating through the body in patients ailing with advanced heart failure.

Medtronic also plans to start The Destination Therapy Post Approval Study and the Apogee Study. In addition to evaluating the safety and efficacy of the HVAD System in "real-world" clinical practice, these studies will work on enhancing patient outcomes through certain best practices in blood pressure management, anticoagulation/antiplatelet therapy, and implant procedure.

The HVAD System is currently available in 47 countries. The latest data is expected to boost top-line contributions from the HeartWare HVAD System within the Cardiac Rhythm & Heart Failure (CRHF) suite.

Market Potential

Per a Statista report, the U.S. Heart Failure market is projected to reach a worth of $1,969 million by 2020, at a CAGR of 16.2%. This positive data base should help accelerate top-line growth.

Per a report by Culrav.org, the global LVAD market is projected to reach a value of $2,323.4 million at a CAGR of 8.9% from 2017 to 2025. Furthermore, per Transperency Market Research, the North American market for ventricular assist devices is expected to see a CAGR of 9.2% in the 2016-2024 period. Considering the market potential, Medtronic’s latest development will help it gain traction in the LVAD space.

More on the CRHF Business

Over more than a year, we have observed a consistently and gradually stabilizing trend in the global CRHF market. Although, Medtronic saw a year-over-year loss in this business in the last reported quarter, there was mid-single-digit growth in pacemakers on strength in Micra transcatheter pacing system and the Azure wireless pacemaker.

Apart from this, atrial fibrillation (AF) solutions grew in the mid-teens at CER driven by continued growth in cryo-balloons. The company’s acquisition of EPIX Therapeutics is also considered strategic. EPIX Therapeutics is developing a highly differentiated technology for over $3 billion worth of focal catheter segment within the ablation market. When combined with Medtronic’s leading cryo-balloon technology, EPIX Therapeutics provides a complete portfolio of best-in-class AF ablation catheter technology.

Price Performance

Over the past year, Medtronic has outperformed the industry it belongs to. The stock has rallied 13.3%, higher than the industry’s rise of 13.2%.

Zacks Rank & Stocks to Consider

Medtronic currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Penumbra, Inc. (PEN - Free Report) , Amedisys, Inc. (AMED - Free Report) and Illumina, Inc. (ILMN - Free Report) .

Penumbra’s long-term earnings growth rate is expected at 20.9%. The stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amedisys’ long-term earnings growth rate is projected at 19.8%. The stock currently carries a Zacks Rank #2.

Illumina’s long-term earnings growth rate is estimated at 21.5%. The stock also carries a Zacks Rank of 2 at present.

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