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Medtronic (MDT) Expands AI-Driven Care With New Partnership
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Medtronic plc (MDT - Free Report) entered into a definitive agreement to expand its partnership with Cosmo Intelligent Medical Devices, a subsidiary of Cosmo Pharmaceuticals. This strategic collaboration advances the use of AI in endoscopic care and strengthens Medtronic's leadership in AI-integrated healthcare solutions.
In accordance with the terms of this extended contract, Medtronic will give Cosmo an upfront payment of $100 million, in addition to a double-digit royalty on net sales that are comparable to market rates and a potential milestone payment of $100 million. The payment is anticipated to be attained by the end of 2024. Medtronic will have exclusive worldwide marketing rights, with Cosmo Pharmaceuticals being the exclusive manufacturer.
More on Collaboration
Through this AI-driven collaboration, GI GeniusTM's intelligent endoscopy module successes will be furthered, providing scalable healthcare improvements and ongoing innovation to patients and caregivers worldwide. With the help of this unique international collaboration, Medtronic and Cosmo Pharmaceuticals are dedicated to transforming endoscopy and utilizing AI to enhance patient outcomes.
The collaboration's emphasis on cutting-edge and scalable AI platforms, such as AI AccessTM, exemplifies an innovative approach to healthcare and provides a wider range of diagnostic tools and treatment options. AI AccessTM is designed to host multiple third-party AI applications to allow for faster innovation and streamline the AI development process across medical AI applications.
Strategic Efforts
The expanded collaboration with Cosmo Pharmaceuticals is a strategic step forward in Medtronic's quest to use AI to improve patient care. This is in line with Medtronic's business goals of providing cutting-edge solutions to customers while also raising patient care standards in the fight against gastrointestinal illnesses.
Image Source: Zacks Investment Research
Medtronic and Cosmo Pharmaceuticals' expanded partnership demonstrates Cosmo's capacity to develop the GI Genius platform into a transformative force in healthcare. The continued cooperation with Medtronic, the world's leading medtech business, is critical in enabling the GI Genius platform to offer advanced AI solutions and improved clinical outcomes to patients worldwide. This relationship is expected to provide tremendous value, representing a big step forward in our journey toward healthcare innovation.
Industry Prospects
The company’s latest move positions it well to capitalize on growth prospects in the AI market.
Per a report by Grand View Research, the global AI in cancer diagnostics market size was $93.2 million in 2021 and is expected to witness a CAGR of 28.0% by 2030. Early detection of cancer is possible through the use of AI for screening and diagnosis of cancer, which is expected to boost market growth.
Progress in AI-Driven Solution
Medtronic’s digitization is transforming the competitive landscape in the spine and with Aible, the company is leading the way. It is currently the only solution with integrated AI-based surgical planning with unit adaptive spine intelligence.
Within Medtronic’s Medical Surgical Portfolios, the company is gaining from the positive sales momentum with the rollout of its differentiated Hugo robotic system in many international markets. At the end of the fiscal second quarter, the company noted that adoption of Hugo remained positive, with surgeons appreciating its feature of Touch Surgery Enterprise Digital Technology. The company is progressing well to bring Hugo to the United States. Recently, the company received the FDA nod to start the U.S. Hernia indication pivotal trial for Hugo.
Price Performance
In the past year, MDT’s shares have increased 1.6% against the industry’s fall of 6.9%.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. The company's shares have decreased 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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Medtronic (MDT) Expands AI-Driven Care With New Partnership
Medtronic plc (MDT - Free Report) entered into a definitive agreement to expand its partnership with Cosmo Intelligent Medical Devices, a subsidiary of Cosmo Pharmaceuticals. This strategic collaboration advances the use of AI in endoscopic care and strengthens Medtronic's leadership in AI-integrated healthcare solutions.
In accordance with the terms of this extended contract, Medtronic will give Cosmo an upfront payment of $100 million, in addition to a double-digit royalty on net sales that are comparable to market rates and a potential milestone payment of $100 million. The payment is anticipated to be attained by the end of 2024. Medtronic will have exclusive worldwide marketing rights, with Cosmo Pharmaceuticals being the exclusive manufacturer.
More on Collaboration
Through this AI-driven collaboration, GI GeniusTM's intelligent endoscopy module successes will be furthered, providing scalable healthcare improvements and ongoing innovation to patients and caregivers worldwide. With the help of this unique international collaboration, Medtronic and Cosmo Pharmaceuticals are dedicated to transforming endoscopy and utilizing AI to enhance patient outcomes.
The collaboration's emphasis on cutting-edge and scalable AI platforms, such as AI AccessTM, exemplifies an innovative approach to healthcare and provides a wider range of diagnostic tools and treatment options. AI AccessTM is designed to host multiple third-party AI applications to allow for faster innovation and streamline the AI development process across medical AI applications.
Strategic Efforts
The expanded collaboration with Cosmo Pharmaceuticals is a strategic step forward in Medtronic's quest to use AI to improve patient care. This is in line with Medtronic's business goals of providing cutting-edge solutions to customers while also raising patient care standards in the fight against gastrointestinal illnesses.
Medtronic and Cosmo Pharmaceuticals' expanded partnership demonstrates Cosmo's capacity to develop the GI Genius platform into a transformative force in healthcare. The continued cooperation with Medtronic, the world's leading medtech business, is critical in enabling the GI Genius platform to offer advanced AI solutions and improved clinical outcomes to patients worldwide. This relationship is expected to provide tremendous value, representing a big step forward in our journey toward healthcare innovation.
Industry Prospects
The company’s latest move positions it well to capitalize on growth prospects in the AI market.
Per a report by Grand View Research, the global AI in cancer diagnostics market size was $93.2 million in 2021 and is expected to witness a CAGR of 28.0% by 2030. Early detection of cancer is possible through the use of AI for screening and diagnosis of cancer, which is expected to boost market growth.
Progress in AI-Driven Solution
Medtronic’s digitization is transforming the competitive landscape in the spine and with Aible, the company is leading the way. It is currently the only solution with integrated AI-based surgical planning with unit adaptive spine intelligence.
Within Medtronic’s Medical Surgical Portfolios, the company is gaining from the positive sales momentum with the rollout of its differentiated Hugo robotic system in many international markets. At the end of the fiscal second quarter, the company noted that adoption of Hugo remained positive, with surgeons appreciating its feature of Touch Surgery Enterprise Digital Technology. The company is progressing well to bring Hugo to the United States. Recently, the company received the FDA nod to start the U.S. Hernia indication pivotal trial for Hugo.
Price Performance
In the past year, MDT’s shares have increased 1.6% against the industry’s fall of 6.9%.
Zacks Rank and Key Picks
Medtronic carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Insulet (PODD - Free Report) and DexCom (DXCM - Free Report) . While Haemonetics and DexCom each carry a Zacks Rank #2 (Buy), Insulet presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. The company's shares have decreased 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.