Medtronic Introduces Spinal Device - Analyst Blog
July 06 2011 - 10:15AM
Zacks
Leading medical devices player,
Medtronic (MDT), strengthened its Spinal portfolio
with the launch of CD Horizon Fenestrated Screw Spinal System in
Europe. The product will be used in combination with Fenestrated
Screw Cement. Over the next few months, this product will be
launched in India, Singapore and Australia. However, CD Horizon
Fenestrated Screw Spinal System is not available in US.
With CD Horizon Fenestrated Screw
Spinal System, surgeons will be able to treat patients with poor
bone quality that might arise from osteoporosis. Specially
formulated bone cement can be injected into a patient’s vertebral
body through the pedicle screw of the system that contains
additional holes at the tip.
During the last reported quarter,
Medtronic’s Spinal segment generated $875 million in sales compared
to $880 million in the year-ago period, down 1% (down 2% at CER).
Revenues from Core Spinal and Biologics were $648 million (down 2%
year over year) and $227 million (up 5%).
The fiscal 2011 has been one of the
most challenging years for Medtronic based on macroeconomic
downturn, decreased utilization and increased payer pushback.
Although the situation is improving gradually, the two biggest
segments of the company – CRDM and Spinal continue to remain under
pressure. However, the company has been planning several product
launches to revive the Spinal segment.
Medtronic witnessed some stability
in the global spine market in the quarter, with market recording
low single-digit growth. Although the U.S. market continues to
remain challenging, new products induced a 6% growth in the
international business. Solera witnessed strong double-digit growth
and is driving the overall posterior fixation category.
Meanwhile, Medtronic is increasing
its focus on emerging markets and emerging therapies and expects
these to be major growth drivers going ahead. The company also
faces tough competition from players such as Boston
Scientific Corporation (BSX) and St. Jude
Medical (STJ).
We are currently ‘Neutral’ on the
stock, which also corresponds to the Zacks #3 Rank (hold) in the
short-term.
BOSTON SCIENTIF (BSX): Free Stock Analysis Report
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