Medtronic plc. (NYSE:MDT) Affirms Focus On High End Medical Devices After Stellar Q1

Andy Parker
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Medtronic plc. (NYSE:MDT) Affirms Focus On High End Medical Devices After Stellar Q1

Medtronic plc. Ordinary Shares (NYSE:MDT) renewed focus on high-end medical device products has received a major boost after its Attain Stability Quad MRI SureScan Active-Fixation heart lead attained CE Mark accreditation. The company is currently carrying out clinical trials for the device in the U.S, Canada, and other regions.

The company has also initiated multicenter clinical studies that will enroll 471 patients aimed at evaluating the safety and efficacy of heart lead in heart failure patients. Attain Stability Quad MRI SureScan Active-Fixation heart lead features an active-fixation technology designed to assists in precise lead placement and stability when paired with pacemakers.

Increased focus on high-end medical devices does not come as a surprise given that the Cardiac Vascular group segment accounted for 35.9% of the company’s overall revenues in the first quarter. The Cardiac Rhythm & Heart Failure business accounted for 52.3% of the growth helped by the HeartWare International and Arrhythmia Management acquisition.

According to Allied Market Research, the cardiac monitoring and cardiac rhythm management market could be worth more than $30 billion because of an unhealthy lifestyle.

“In the view of these encouraging factors, we believe that the company’s European development for Attain Stability Quad MRI SureScan Active-Fixation heart lead is strategic and will broaden its customer base,” Zacks Research in a Report.

Q2 Earnings

Separately, Medtronic reported First quarter earnings that topped estimates. The company reported earnings of $1.12 a share beating analysts’ expectations by 3.7% and growing by 8.7% year over year. Total revenue was up by 4% to come in at $7.39 billion slightly below consensus estimates of $7.45 billion. Gross margin in the quarter contracted 20 basis points to 68.2% even as gross profit increased 2.8% to $5.04 billion.

Unlike Boston Scientific Corporation (NYSE:BSX) and Edwards Life sciences Corp (NYSE:EW), Medtronic has maintained its full year guidance. For the full year ending April 2018, the company says it expects earnings per share to increase by between 9% and 10% and revenue to increase by between 4% and 5%.

Shares of Medtronic were down by 2.46% in Wednesday’s trading session to end the day at $79.75 a share.