CE Mark for MDT’s Ensura – Analyst Blog

Recently, Medtronic (MDT) received CE Mark approval for its Ensura MRI SureScan Pacing system. The system would facilitate full body scan, without any technical limitations in the MRI scanner. The system as a second-generation pacing system expands Medtronic’s portfolio of devices.

The main characteristics of the system are Atrial management (ACM) and Ventricular Capture management (VCM). The system employs innovative technology such as MVP (Managed Ventricular Pacing), which helps to reduce the right ventricular pacing by 99%. The pacing system is also compatible with the company’s CareLink Network, a leading remote monitoring service, connecting cardiac device patients to their clinic from home or any other place.

MRI, known as Magnetic resonance imaging, is primarily a medical imaging technique used to visualize detailed internal structure and limited function of the body. Ensura MRI system, currently not approved for sale in the US, is however available in some of the European regions.

Medtronic has implanted pacemakers in patients constituting almost half of the world’s pacemaker implants. Medtronic through the MRI-compatible pacing systems aims at assisting the physicians to diagnose critical diseases such as cancers, orthopedic injuries and neurological disorders, in a safe and effective manner.

The company recently launched the Advisa MRI SureScan pacemaker in Europe at the end of the fourth quarter of fiscal 2010 and expects to launch its Revo MRI SureScan pacemaker in the US in the first half of 2011. These launches should strengthen its portfolio further, giving a boost to its top line in future.

Medtronic, a leading player in the medical devices market, has grown through several acquisitions. However, deep product pipeline and strong R&D program are responsible for the organic growth of the company.

We have a Neutral recommendation on the stock.