Leading medical devices maker Medtronic (MDT) has launched Contour 3D Annuloplasty Ring globally to treat tricuspid valve disease. With this device, the surgeons will be able to remodel the natural valve’s shape and size and restore the normal functioning of the valve.
This segment holds huge potential as Tricuspid dilation is the most common form of heart disease in today’s world leading to severe tricuspid regurgitation. At present Medtronic has got the approval for this new tricuspid ring in the US, Europe and many other nations worldwide.
This innovative Contour 3D Ring is basically the upgraded version of Profile 3D, a contoured mitral annuloplasty ring technology of Medtronic. Currently this device is the only existing product under the CardioVascular segment to use computed tomography (CT) images thus efficiently remodels the tricuspid valve.
Medtronic derives about 20% of its revenues from the CardioVascular segment, which recorded a significant 7% rise in sales to $774 million during the last reported quarter. This was driven by robust performance in all businesses, particularly in emerging markets where revenue increased by 30%.
Revenue from structural heart increased 12% year over year to 241 million driven by growth in transcatheter valves. Also the acquisition of ATS Medical is expected to boost this segment’s growth further with the new tricuspid valve repair product line that constitutes of Contour 3D Ring as well as another newly introduced device Tri-Ad Adams Tricuspid Ring.
Over the past few years, Medtronic has been reallocating resources for developing new therapies that would drive growth and elevate its position in the tough competitive landscape. Also Medtronic is emphasizing on research studies as well as acquisition of technologies to strengthen its product pipeline.
Moreover, presently the company is focusing on international market in order to lift the top line. However, Medtronic faces stiff competition from major players like Boston Scientific Corporation (BSX), and Zimmer (ZMH). The company is also exposed to the risk of currency movement.
We are currently ‘Neutral’ on the stock.
BOSTON SCIENTIF (BSX): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
ZIMMER HOLDINGS (ZMH): Free Stock Analysis Report
Zacks Investment Research
