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Medtronic Resource Centre Opens for Diabetic People in Canada

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In order to drive its diabetes business, Medtronic plc (MDT - Free Report) has ventured into the untapped market of Canada. The company announced that its subsidiary has opened its first Canadian Medtronic Resource Centre to serve diabetic patients in Surrey BC and nearby.

Through this centre, Medtronic aims to provide extended services like education, support and other resources to local health care practitioners and their Type 1 or Type 2 Diabetes patients who depend on insulin pump and continuous glucose monitoring (CGM) technologies.

This centre will provide post-marketing care to patients on an intensive insulin regiment using Medtronic insulin pump technology.Accordingly, management expects to raise the bar to a new level of support for patients with diabetes. Per management, this establishment will help diabetic patients reduce long-term complications related to this disease, which will further improve patients’ lives.

According to BCC Research, the global diabetes market should reach $155 billion by 2021, at a CAGR of 4.4% in the 2016 to 2021 period. Clearly, the company has bountiful opportunities in this niche market.

Over the last three months, Medtronic has been lagging the Zacks categorized Medical Product industry. As per the last share price movement, the company has gained 4.7%, compared to the 5.61% gain of the broader industry. We expect positive developments like the recent investment plan in Canada to drive the company’s share price.

Recents Developments

Medtronic recently launched MiniMed 670G system, a Hybrid Closed Loop insulin delivery system for Type I diabetic patients. This followed the U.S. FDA approval received late last year. MiniMed 670G should help Medtronic simplify and improve diabetes management through advancement of smart algorithms that help control glucose levels in diabetic patients.

Zacks Rank & Key Picks

Medtronic currently carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock added roughly 30.9% over the 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 88%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 20% over the last three months.

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