Leading medical devices maker Medtronic’s (MDT) will present pivotal U.S. data on its Resolute drug-eluting stent (DES) at the annual conference of American College of Cardiology to be held in New Orleans from April 2-5.
The data that brings forth the one year result of a clinical study (named RESOLUTE US) will also help meet the requirements of the US Food and Drug Administration (FDA) for the pre-market approval of Medtronic’s Resolute DES.
In addition, Medtronic has also planned to showcase its Revo MRI SureScan Pacing System, Arctic Front Cardiac CryoAblation Catheter System and CoreValve in the exhibition. The company is yet to receive FDA approval for the CoreValve system.
Medtronic reported a 7% year-over-year increase in CardioVascular segment’s sales during the third quarter of fiscal 2011 driven by the robust performance of all its businesses, particularly in emerging markets where revenues increased by 30%.
In addition, while the stent market continues to experience year-over-year declines, Medtronic gained share with its Integrity platform. The company’s US market share in bare metal stent (BMS) was up by 9 percentage points compared to the year-ago period.
Medtronic has adopted several strategic initiatives to maintain its leadership position in the fiercely competitive medical devices industry as it battles for capturing a considerable market with other major players such as Boston Scientific (BSX) and St. Jude Medical (STJ).
Given the huge potential in the cardiovascular segment’s DES therapy market, Medtronic has been reallocating resources for developing new therapies to drive growth.
Medtronic is currently targeting the under-penetrated emerging economies. Moreover, its restructuring initiatives should help it sustain long-term growth. We are currently Neutral on Medtronic which corresponds to a Zacks #3 Rank (Hold).
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