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Medtronic Starts PRODIGY Study on Respiratory Compromise
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Medtronic plc (MDT - Free Report) , a medical device major is successfully continuing with innovation and product development strategy. The company recently introduced a new global study on opioid induced respiratory depression (OIRD), a preventable form of respiratory compromise.
Named PRODIGY (PRediction of Opioid-induced respiratory Depression In patients monitored by capnoGraphY), this is a prospective, multi-center, post-market, international cohort study. Based on 1650 patients, this trial aims at detecting patients with high risk of respiratory compromise.
Per Medtronic’s claim, this is the first study to use pulse oximetry and capnography in patients undergoing opioid medication. The research may enable patients to access clinical and economic benefits. The study also aims at helping physicians to better understand the true incidence of respiratory compromise that has been ignored otherwise.
Significantly, ‘respiratory compromise’ can be life-threatening. Its progressive condition may negatively impact breathing abilities of a person. OIRD patients after their opioid administration, particularly experience a loss in effective ventilatory function.
Growth Prospects
We believe that post completion, this PRODIGY study will prove to be a major breakthrough for Medtronic’s patient monitoring and recovery segment within its Minimally Invasive Therapies Group (MITG) as company data shows that respiratory compromise condition is rapidly ranking third on the list of costliest hospital inpatient expenses in the U.S.
Latest information provided by Technavio also ratifies the rapid growth of a niche market for respiratory compromise. It reflects that global capnography market has been forecast to witness a CAGR of over 16% during 2016-2020. An Infoholic research report also reveals huge growth potential of the broader Global Respiratory Care Devices Market, which is tipped to observe an estimated CAGR of 8.8% over the forecast period of 2017–2023. Thus, Medtronic is expected to reap benefits, if it can successfully run the PRODIGY study.
Recent Developments
With an aim to focus more on its core business within the company’s patient monitoring and recovery segment, the company has decided to divest a part of the business (Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency) to Cardinal Health.
The divestment of these non-core, non-profitable wings will help Medtronic to invest over long-term, high-return, internal and external opportunities that are more directly aligned with the company’s growth strategies of therapy innovation, globalization and economic value.
Post-closing, the company conveys that the transaction is expected to result in an immediate positive impact on Medtronic’s comparable, constant currency revenue growth rate and the adjusted comparable, constant currency operating margin of approximately 50 basis points each.
Notably, Patient Monitoring & Recovery have already registered above market growth during the company’s last-reported fourth-quarter fiscal 2017 earnings announced last week, which was driven by strong products like PB980 ventilator, Capnostream 20 bedside capnography monitor, capnography disposables and Nellcor pulse oximetry products.
Price Performance
Over last month, Medtronic has been observed to underperform the Zacks Medical - Products industry. Per last share price movement, the company has overall lost 0.6%, compared to 1.7% gain of the broader industry.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold). Few top-ranked stocks in broader medical sector are Luminex Corp. , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Both Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock roughly added 7% over last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 81.9%.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has added roughly 7.5% over last three months.
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Medtronic Starts PRODIGY Study on Respiratory Compromise
Medtronic plc (MDT - Free Report) , a medical device major is successfully continuing with innovation and product development strategy. The company recently introduced a new global study on opioid induced respiratory depression (OIRD), a preventable form of respiratory compromise.
Named PRODIGY (PRediction of Opioid-induced respiratory Depression In patients monitored by capnoGraphY), this is a prospective, multi-center, post-market, international cohort study. Based on 1650 patients, this trial aims at detecting patients with high risk of respiratory compromise.
Per Medtronic’s claim, this is the first study to use pulse oximetry and capnography in patients undergoing opioid medication. The research may enable patients to access clinical and economic benefits. The study also aims at helping physicians to better understand the true incidence of respiratory compromise that has been ignored otherwise.
Significantly, ‘respiratory compromise’ can be life-threatening. Its progressive condition may negatively impact breathing abilities of a person. OIRD patients after their opioid administration, particularly experience a loss in effective ventilatory function.
Growth Prospects
We believe that post completion, this PRODIGY study will prove to be a major breakthrough for Medtronic’s patient monitoring and recovery segment within its Minimally Invasive Therapies Group (MITG) as company data shows that respiratory compromise condition is rapidly ranking third on the list of costliest hospital inpatient expenses in the U.S.
Latest information provided by Technavio also ratifies the rapid growth of a niche market for respiratory compromise. It reflects that global capnography market has been forecast to witness a CAGR of over 16% during 2016-2020. An Infoholic research report also reveals huge growth potential of the broader Global Respiratory Care Devices Market, which is tipped to observe an estimated CAGR of 8.8% over the forecast period of 2017–2023. Thus, Medtronic is expected to reap benefits, if it can successfully run the PRODIGY study.
Recent Developments
With an aim to focus more on its core business within the company’s patient monitoring and recovery segment, the company has decided to divest a part of the business (Patient Care, Deep Vein Thrombosis and Nutritional Insufficiency) to Cardinal Health.
The divestment of these non-core, non-profitable wings will help Medtronic to invest over long-term, high-return, internal and external opportunities that are more directly aligned with the company’s growth strategies of therapy innovation, globalization and economic value.
Post-closing, the company conveys that the transaction is expected to result in an immediate positive impact on Medtronic’s comparable, constant currency revenue growth rate and the adjusted comparable, constant currency operating margin of approximately 50 basis points each.
Notably, Patient Monitoring & Recovery have already registered above market growth during the company’s last-reported fourth-quarter fiscal 2017 earnings announced last week, which was driven by strong products like PB980 ventilator, Capnostream 20 bedside capnography monitor, capnography disposables and Nellcor pulse oximetry products.
Price Performance
Over last month, Medtronic has been observed to underperform the Zacks Medical - Products industry. Per last share price movement, the company has overall lost 0.6%, compared to 1.7% gain of the broader industry.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold). Few top-ranked stocks in broader medical sector are Luminex Corp. , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Both Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock roughly added 7% over last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 81.9%.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has added roughly 7.5% over last three months.