Medtronic, Inc.
(MDT) yesterday reported positive results from the study of the safety and effectiveness of the company’s INFUSE Bone Graft compared to autogenous bone graft when used in maxillary sinus floor augmentation. Results indicated that INFUSE Bone Graft are equally effective as autogenous bone graft for sinus lifts, a common dental surgical procedure.

Additionally, INFUSE Bone Graft avoids harvesting autogenous bone — that is, bone taken from the patient’s body — and thereby eliminates the associated morbidity, cost and increased surgical time. The bone generated by INFUSE Bone Graft is normal, mature and 100% viable with no residual graft material.

It has been estimated that roughly 100,000 patients in the U.S. are indicated for a sinus lift augmentation to place dental implants. Severe bone loss results mainly from disease, trauma or genetic defects.

We think that the new device brings an alternative treatment option and therefore will be widely accepted by dental surgeons. This is a shot in the arm for Medtronic as it will boost revenues of the company’s Spinal and Biologics segment, which will lead to overall growth in the top-line.

Medtronic is one of the world’s leading medical technology companies, specializing in implantable and interventional therapy devices and products. The company’s main competitors include St. Jude Medical (STJ) and Boston Scientific Corporation (BSX).

Medtronic’s management has a typical ‘ONE Medtronic’ approach that encompasses the following goals: drive sustainable long-term growth of 9%-11% through innovation; focus on operating margins — increase by 300 to 400 basis points; EPS growth of 11%-14% and return a minimum of 40%-50% of free cash flow to shareholders annually; and align the organization for consistent execution. Medtronic’s first quarter of fiscal 2010 results indicate that the company is well on track in achieving these goals.
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