Recently, Medtronic (MDT) initiated patient enrollment for a study to evaluate the effectiveness of one of its diabetes management devices. The ASPIRE (Automation to Simulate Pancreatic Insulin REsponse) study is targeted at evaluating Medtronic’s MiniMed Paradigm x54 System’s efficiency in controlling hypoglycemia or low blood glucose level.
 
We believe there is huge potential in the diabetes management business since it is estimated that on average, a diabetic patient experiences low blood glucose level more than once every two weeks. Moreover, every year, one in fourteen people undergoing insulin treatment will experience severe hypoglycemia.
 
Medtronic is one of the leading players in integrated diabetes management systems, insulin-pump therapy, continuous glucose monitoring (CGM) systems and therapy management software. In fiscal 2010, this segment generated $1,237 million in sales, up 10% compared to the previous year at constant exchange rates (CER).
 
The Diabetes segment recorded a year over year growth of 8% at CER ($332 million) during the fourth quarter of 2010. Growth during the quarter was driven by a strong international performance and growth in CGM sales.
 
Earlier, in March 2010, the company received the US Food and Drug Administration (FDA) approval for its MiniMed Paradigm Real-Time Revel System, the next generation integrated diabetes management system (insulin pump therapy, CGM, and diabetes therapy management software).  This system incorporates new advanced CGM features including predictive alerts that can give early warning to people with diabetes.
 
Medtronic’s Paradigm Veo system, with its ‘low glucose suspend’ feature, represents a significant growth opportunity for the company. Moreover, the launch of MiniMed Paradigm Real-Time Revel in the US has kicked off well. Based on the success of these two pumps, Medtronic is aiming to increase its market share in the diabetes management system.
 
Apart from Diabetes, Medtronic’s other business segments include Cardiac Rhythm Disease Management (CRDM), Spinal, CardioVascular, Neuromodulation, Surgical Technologies and Physio-Control.
 
Medtronic is a leading player in the medical devices market although it faces tough competition from players like Boston Scientific Corp. (BSX) and St. Jude Medical (STJ).
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