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Medtronic Announces U.S. Launch of Adaptix, Expands Portfolio

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Medtronic plc (MDT - Free Report) recently announced the U.S. launch of Adaptix Interbody System post its FDA approval in August. Notably, Adaptix is the first navigated titanium implant with Titan nanoLOCK Surface Technology, a proprietary combination of surface textures on the macro, micro and nano levels.

For investors’ note, the Adaptix system is the first 3D printed titanium implant developed in-house by the Medtronic engineers, incorporating the state-of-the-art Titan nanoLOCK Surface Technology. Further, this surface technology was first demonstrated by Titan Spine, which was acquired by Medtronic in 2019.

Notably, the Adaptix system is compatible with Medtronic’s navigation platforms (StealthStation Navigation and O-arm imaging) and the newly-released Grafton DBF Inject.

With the recent U.S. launch, Medtronic aims to fortify its position in the spine business, which belongs to the broader Restorative Therapies Group.

Significance of the Launch

The Adaptix Interbody System, which is designed like the Capstone Spinal System, boasts improved features for increased strength, subsidence resistance, easy insertion and data-backed bone growth.

Per the medical fraternity, the Adaptix system enables to provide patient-centric treatment options. This is so because the implant can be safely put under navigation and the Titan nanoLOCK Surface Technology can be trusted to allow the implant to promote fusion.

Industry Prospects

Per a report by Research And Markets, the global spinal implants and surgery devices market is projected to reach $13.8 billion by 2025 from $10.3 billion in 2019, at a CAGR of 5%. Factors like technological advancements in spine surgery, increasing incidence of spinal disorders and the increasing adoption of minimally-invasive spine surgeries are likely to drive the market.

Given the market potential, the U.S. launch of the Adaptix system seems to have been timed well.

Recent Developments in Restorative Therapies Group

Of late, Medtronic has been witnessing few developments in this business arm.

The company announced the implantation of the first patient in its Evaluation of InterStim Micro System Performance and Safety (ELITE) study of the InterStim Micro system this month. Notably, ELITE is the only study of a rechargeable sacral neurostimulation (SNS) system to include all SNS indications for symptoms.

Medtronic, in August, commenced the enrolment for a prospective, multicenter, global, post-market study of its InterStim Micro neurostimulator — ELITE — for sacral neuromodulation (SNM) therapy. In the same month, the company received the FDA’s clearance for its InterStim SureScan MRI leads along with the InterStim Micro neurostimulator.

Further, in August, the InterStim Micro neurostimulator was launched in the United States for SNM therapy.

Price Performance

Shares of the company have lost 1% in the past year against the industry’s 4.9% rise and the S&P 500’s 17.4% 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 Globus Medical, Inc. (GMED - Free Report) .

QIAGEN’s long-term earnings growth rate is estimated at 17.2%. It currently flaunts 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 15.5%. It currently sports a Zacks Rank #1.

Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2 (Buy).

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