Back to top

Image: Bigstock

Medtronic's Pediatric Diabetes Device Gets Regulatory Nod

Read MoreHide Full Article

Per FDA’s Aug 31 announcement, Medtronic’s (MDT - Free Report) MiniMed 770G System has received regulatory approval for use in young pediatric patients. This is a significant development for Medtronic and will expand the company’s foothold in the still-untapped pediatric diabetes care market.

Per the announcement, the MiniMed 770G System is a first-of-a-kind device for type 1 diabetes patients aged 2 to 6 years. This is a hybrid closed loop diabetes management device that can automatically monitor glucose (sugar) and provide appropriate basal insulin doses with little or no input from pediatric patients or their caregivers.

It can be considered a breakthrough for Medtronic’s diabetes care business, considering the fact that it is the first legally marketed device that can automatically adjust insulin delivery based on continuous glucose monitor values for this particular set of patients.

The Device at a Glance

MiniMed 770G is basically Medtronic’s MiniMed 670G System’s upgraded version with some modifications. This Bluetooth-enabled hybrid closed loop system measures glucose levels in the body at five minutes interval and automatically manages or withholds insulin delivery. It has a sensor to measure the glucose level, an insulin pump and an infusion patch connected to the pump with a catheter that delivers insulin.

Price Performance Chart

 

This is a notable upgrade when compared to the traditional systems as part of which the patients or their caregivers have to monitor the glucose levels throughout the day and inject insulin with a syringe, pen or pump so that the patient does not suffer from hyperglycemia (high glucose levels) or hypoglycemia (low glucose levels).

Industry Prospects

Per Market Research Future’s analysis, the global Type-1 diabetes treatment market is expected to cross $9.6 billion by 2025 at a CAGR of 7.9%.

Considering the market potential, this well-timed launch will provide a boost to the company’s business.

Medtronic’s Recent Developments in Diabetes Group

Of late, Medtronic has been witnessing a slew of developments in this business arm.

In July, the company launched an easy-to-use insulin infusion set, MiniMed Mio Advance, for the insulin-dependent diabetic patients in the United States. The launch expands Medtronic’s existing MiniMed portfolio of infusion sets along with simplifying diabetes management.

In June, the company presented favorable results from its U.S. pivotal trial of its investigational MiniMed 780G Advanced Hybrid Closed Loop (“AHCL”) system at the American Diabetes Association’s session.

In the same month, Medtronic announced the receipt of the CE Mark for its next generation closed loop insulin pump system, MiniMed 780G AHCL, for the treatment of type 1 diabetes in the age range of seven to 80 years.

In May, Medtronic received FDA approval for the Android version of its Guardian Connect continuous glucose monitoring system.

In the same month, the company also announced an expansion of the Medtronic Assurance program with a new option to support diabetics who have lost their health insurance due to COVID-19 related job loss. Current eligible customers in the United States will receive a three-month supply of glucose sensors, infusion sets and reservoirs free of charge.

Price Performance

Year to date, shares of the company have gained 4.8% compared with the industry’s 7.1% rise and the S&P 500's 7.5% growth.

Zacks Rank & Key Picks

Currently, Medtronic carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .

QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).

Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in