Medtronic Starts Post-Approval Study - Analyst Blog
September 02 2011 - 1:31PM
Zacks
Medtronic (MDT) has started a post-approval
study of Endurant AAA Stent Graft System for the treatment of
abdominal aortic aneurysms (AAA). The first patient under the
post-approval study has been enrolled in early August. The
long-term safety and effectiveness study will enroll about 325
patients across 25 sites in the US.
Endurant AAA Stent Graft received approval from the US Food and
Drug Administration (FDA) in December 2010. The device has been
used to treat more than 6,000 patients in the US.
CardioVascular is Medtronic’s third biggest segment that
generated $850 million of revenues during the first quarter of
fiscal 2012, up 19% year over year (up 11% at CER). Revenues
increased 10% in the US accompanied by strong international
performance (11% growth) particularly in emerging markets (30% at
CER).
The segment’s robust results were driven by overall growth in
all three of its sub-components – Coronary (up 14% or 6% at CER to
$389 million), Structural Heart (up 23% or 15% at CER to $275
million) and Endovascular & Peripheral (up 23% or 16% at CER to
$186 million). Endovascular revenues were bolstered by a 27% rise
in US sales on the back of the Endurant abdominal stent graft
success.
During the most recent quarter, the company’s other segments –
CRDM, Spinal, Neuromodulation, Diabetes, Surgical Technologies and
Physio-Contro generated corresponding sales of $1.253 billion (up
2% year over year but down 3% at CER), $825 million (flat or down
3% at CER), $397 million (up 7% or 4% at CER), $355 million (up 14%
or 9% at CER), $266 million (up 13% or 9% at CER) and $103 million
(up 23% or 17% at CER).
Fiscal 2011 has been one of the most challenging years for
Medtronic stemming from the macroeconomic downturn and decreased
utilization. Besides, the company faces stringent competition from
well-funded rivals like Boston Scientific (BSX)
and St Jude Medical (STJ).
The company has undertaken several steps to better adapt to the
changing environment. Having witnessed various challenges in its
core segments, Medtronic has shifted its focus to areas such as
CardioVascular, Diabetes and Neuromodulation to drive its top
line.
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