We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abbott's (ABT) Eterna SCS System Receives FDA's Approval
Read MoreHide Full Article
Abbott Laboratories (ABT - Free Report) recently received FDA approval for its Eterna spinal cord stimulation (SCS) system for treating chronic pain. The Eterna SCS system is the smallest implantable, rechargeable system that is currently available on the market for this indication.
The recent development is likely to fortify Abbott’s Established Pharmaceuticals Division (EPD) segment.
More on Eterna SCS System
It also noted that the Eterna SCS system had been developed based on extensive studies conducted with patients, physicians and caregivers to understand the unmet requirements of chronic pain patients. Per the company, the SCS technology has shown 23% more pain reduction compared with traditional waveform technology approaches.
Eterna SCS leverages the company’s proprietary low-dose BurstDR stimulation, which mimics natural firing patterns in the brain to provide superior pain relief. Notably, Eterna enhances the patient charging experience, requiring as few as five recharges per year under standard use from a wireless charger.
Moreover, Eterna utilizes Abbott's TotalScan MRI technology, enabling full-body MRI scans — a vital need of chronic pain patients who require accessibility to enhanced diagnostics and healthcare.
Significance of the Approval
It is worth mentioning that in the United States, over 50 million people suffer from chronic pain. Per U.S. Pain Foundation, chronic pain is the leading cause of people going to the doctor and costs the nation about $635 billion each year in healthcare, disability and lost productivity costs. Abbott's low-dose BurstDR stimulation is clinically proven to lessen pain, enhance people's ability to perform day-to-day activities and lower emotional suffering associated with pain.
Image Source: Zacks Investment Research
Abbott is committed to simplifying healthcare, improving clinical outcomes and providing people suffering from chronic pain with the best experience possible. Eterna SCS System is the next major step forward. Per management, Eterna SCS System is the smallest rechargeable spinal cord stimulator available in the market, offering the longest therapy between charges and delivering an optimized recharging experience.
Industry Prospects
Per a report by Grand View Research, the global spinal cord stimulation devices market size was $1.83 billion in 2018 and is expected to expand at a CAGR of 8.7% by 2026. The rise in the number of patients suffering from failed back syndrome, chronic pain and Complex Regional Pain Syndrome (CRPS) is the key factor driving the market.
Recent Developments
In the third quarter of 2023, Established Pharmaceuticals sales improved 4.9% on a reported basis (up 12.2% on an organic basis) to $1.33 billion. Organic sales in key emerging markets improved 13% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Vietnam and several therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management.
During the last quarter earnings update, Abbott also noted that EPD has achieved double-digit organic sales growth since the beginning of 2021, fueled by a steady cadence of new product launches and strong commercial execution.
Price Performance
Shares of the company have lost 21.2% in a year compared with the industry’s fall of 44%.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. (SWAV - Free Report) , Orthofix Medical Inc. (OFIX - Free Report) and Merit Medical System (MMSI - Free Report) .
ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by a stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.
Orthofix Medical has an estimated next-year growth rate of 58.97%. MMSI’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Abbott's (ABT) Eterna SCS System Receives FDA's Approval
Abbott Laboratories (ABT - Free Report) recently received FDA approval for its Eterna spinal cord stimulation (SCS) system for treating chronic pain. The Eterna SCS system is the smallest implantable, rechargeable system that is currently available on the market for this indication.
The recent development is likely to fortify Abbott’s Established Pharmaceuticals Division (EPD) segment.
More on Eterna SCS System
It also noted that the Eterna SCS system had been developed based on extensive studies conducted with patients, physicians and caregivers to understand the unmet requirements of chronic pain patients. Per the company, the SCS technology has shown 23% more pain reduction compared with traditional waveform technology approaches.
Eterna SCS leverages the company’s proprietary low-dose BurstDR stimulation, which mimics natural firing patterns in the brain to provide superior pain relief. Notably, Eterna enhances the patient charging experience, requiring as few as five recharges per year under standard use from a wireless charger.
Moreover, Eterna utilizes Abbott's TotalScan MRI technology, enabling full-body MRI scans — a vital need of chronic pain patients who require accessibility to enhanced diagnostics and healthcare.
Significance of the Approval
It is worth mentioning that in the United States, over 50 million people suffer from chronic pain. Per U.S. Pain Foundation, chronic pain is the leading cause of people going to the doctor and costs the nation about $635 billion each year in healthcare, disability and lost productivity costs. Abbott's low-dose BurstDR stimulation is clinically proven to lessen pain, enhance people's ability to perform day-to-day activities and lower emotional suffering associated with pain.
Abbott is committed to simplifying healthcare, improving clinical outcomes and providing people suffering from chronic pain with the best experience possible. Eterna SCS System is the next major step forward. Per management, Eterna SCS System is the smallest rechargeable spinal cord stimulator available in the market, offering the longest therapy between charges and delivering an optimized recharging experience.
Industry Prospects
Per a report by Grand View Research, the global spinal cord stimulation devices market size was $1.83 billion in 2018 and is expected to expand at a CAGR of 8.7% by 2026. The rise in the number of patients suffering from failed back syndrome, chronic pain and Complex Regional Pain Syndrome (CRPS) is the key factor driving the market.
Recent Developments
In the third quarter of 2023, Established Pharmaceuticals sales improved 4.9% on a reported basis (up 12.2% on an organic basis) to $1.33 billion. Organic sales in key emerging markets improved 13% year over year. According to Abbott, organic sales improvement was backed by strong growth in several geographies, including India, China, Brazil and Vietnam and several therapeutic areas, including cardiometabolic, gastroenterology and central nervous system/pain management.
During the last quarter earnings update, Abbott also noted that EPD has achieved double-digit organic sales growth since the beginning of 2021, fueled by a steady cadence of new product launches and strong commercial execution.
Price Performance
Shares of the company have lost 21.2% in a year compared with the industry’s fall of 44%.
Zacks Rank and Key Picks
Currently, Abbott carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that investors can consider are ShockWave Medical, Inc. (SWAV - Free Report) , Orthofix Medical Inc. (OFIX - Free Report) and Merit Medical System (MMSI - Free Report) .
ShockWave Medical, sporting a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 35% against the industry’s 32.6% fall in the past year.
Orthofix Medical, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2022 adjusted EPS of 13 cents, which beat the Zacks Consensus Estimate by a stupendous 550%. Revenues of $114 million outpaced the consensus mark by 2.7%.
Orthofix Medical has an estimated next-year growth rate of 58.97%. MMSI’s earnings surpassed estimates in the trailing three quarters and missed in one, the average being 129.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Merit Medical, currently carrying a Zacks Rank of 2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.