Medtronic Unveils Remote CGM Tech - Analyst Blog
January 09 2012 - 9:45AM
Zacks
Leading medical devices player,
Medtronic (MDT) has strengthened its Diabetes
portfolio with the launch of a remote glucose monitor dubbed
mySentry. This first-of-its-kind technology would enable a parent
or a caregiver to monitor from another room a patient’s MiniMed
Paradigm Real-Time Revel System, an insulin pump with built-in
continuous glucose monitoring (“CGM”).
This product could be of great help
for parents, who could be alerted through an alarm in the middle of
the night if their child’s glucose levels are falling.
Consequently, they can take the required action to prevent an
episode of low blood sugar (hypoglycemia). This is significant
particularly for patients with type 1 diabetes, as nighttime
hypoglycemia remains a big concern for the caregivers.
William Tamborlane, Chief of
Pediatric Endocrinology and Deputy Director of the Yale Center for
Clinical Investigation considers mySentry to provide parents with
added nighttime protection as they can avoid the need of waking up
a couple of times every night to check their child’s blood sugar
level. As per estimates, 75% of all episodes of severe hypoglycemia
in children occur at night.
The last few quarters saw Medtronic
reporting weaker sales from its two largest segments –
defibrillators and spinal implants. The challenges witnessed in the
US ICD market have also been felt across the board and impacted
Medtronic’s competitors, Boston Scientific (BSX)
and St Jude Medical (STJ).
To overcome these challenges,
Medtronic is trying every means to revive growth. This includes
penetration of international markets, portfolio expansion, focus on
high-potential segments and restructuring initiatives. These should
benefit the company over the long term.
The Diabetes segment, in this case,
has been a point of focus for the company and has been recording
robust growth over the recent past banking on approval of key
products. In November 2011, Medtronic received approval from the US
Food and Drug Administration (“FDA”) for iPro2, a next generation
Professional CGM system. Approval of iPro2 is significant as
professional CGM is used by healthcare providers to reveal
hypoglycemia and hyperglycemia (high) glucose excursions that can
aggravate the condition of diabetic patients. These
excursions often go unnoticed with traditional A1C tests and
standard glucose meter measurements.
Medtronic currently retains a Zacks
#3 Rank (short-term Hold rating). We also maintain our long-term
Neutral recommendation on the stock.
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