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Leading medical device major Medtronic plc (MDT - Free Report) recently announced that the U.S. FDA approval for its MiniMed 670G system, a Hybrid Closed Loop insulin delivery system. This system is the first of its kind to have received an authorization. MiniMed 670G should help Medtronic simplify and improve diabetes management through the advancement of smart algorithms that helps control glucose levels in diabetic patients.

The MiniMed 670G system features Medtronic’s latest Guardian Sensor – a glucose sensor with increased accuracy and enhanced performance. This is the only sensor approved by the FDA to control a hybrid closed loop system which includes diagnostic technology that continuously checks sensor health. The system also carries Medtronic’s most advanced algorithm known as SmartGuard HCL. Thus, the system with the latest algorithm can capture data related to a patient’s insulin needs, requiring minimal input to minimize both high and low glucose levels. Patients only need to enter mealtime carbohydrates, accept bolus correction recommendations and at times regulate the sensor.

Medtronic, in collaboration with JDRF, developed the MiniMed 670G system to treat chronic type 1 diabetes in people aged fourteen years and above. Research and studies are being carried out to expand the indication to include additional patient populations.

According to Markets and Markets report, the global diabetes care device market has been forecasted to reach $2.3 billion by 2020 and is estimated to grow at a CAGR of 6.3% during the forecast period. Medtronic’s Diabetes Group aims to capture the untapped potential of this growing market.

Medtronics recorded year-to-date net sales of $1.368 billion in the diabetes segment, an increase of 6% from the comparable period. Recently, the company announced the first use of Sugar.IQ with Watson, a cognitive application for diabetic patients The company also gained FDA approval for its Enlite sensor, in line with its objective to offer better healthcare solutions for diabetic patients. Last month, the company introduced MiniMed 630G system with a user-friendly insulin pump and the FDA-approved SmartGuard technology for the treatment of diabetes mellitus in patients aged sixteen years and above.  

Key Picks

A few notable stocks in the medical product sector are Quidel Corp. (QDEL - Free Report) , NuVasive, Inc. (NUVA - Free Report) and GW Pharmaceuticals plc (GWPH - Free Report) .

Quidel gained 16.05% in the past one year, higher than the S&P 500’s gain of 13.09%. Over the next five years, the stock is estimated to record earnings growth of 20%, higher than the industry average of 14.8%.

NuVasive gained 39.59% over the past one year compared to the S&P 500’s 13.09%. Over the next five years, the stock is expected to see 16.7% earnings growth compared to the industry average of 14.8%.

GW Pharmaceuticals gained 42.43% in the past one year, higher than the S&P 500’s gain of 13.09%.

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