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Medtronic plc’s (MDT - Free Report) strategic progress within its core Cardiac Rhythm & Heart Failure business majorly continues banking on its wide and growing Atrial Fibrillation (AF) solution sub segment.

Following the FDA approval of the company’s Visia AF ICD (implantable cardioverter defibrillator), Medtronic once again has come up with a favorable study result on Reactive ATP (atrial-based antitachycardia pacing) therapy.

Per announcement, based on the analysis of a real-world 8,800 patient population, Medtronic’s Reactive ATP therapy slows the progression of AF in patients who are being implanted with cardiac devices. This study was presented at the EHRA EUROPACE-CARDIOSTIM 2017 as a late breaking clinical trial.

Medtronic claims Reactive ATP as a painless pacing therapy, solely found on the company’s pacemakers, implantable cardioverter defibrillators (ICDs) and cardiac resynchronization therapy (CRT) devices.

This procedure keeps sending pacing pulses to the atria during abnormally fast rhythms or heartbeats, thereby helping to restore the heart’s normal rhythm and slowing the progression of AF.

Market Prospects

Notably, per the American Heart Association (AHA), Atrial Fibrillation is an irregular heartbeat (arrhythmia) which may lead to blood clots, stroke, heart failure and other heart-related complications.

This disease has become a threat to the entire world at present as researches reveal about its pandemic spread at an alarming rate. According to information provided by AHA,at least 2.7 million Americans are living with AF. While globally, AF affects more than 33 million people.

While this disease constantly imposes a significant burden on the entire healthcare community, the global AF solutions market grows in leaps and bounds. Per the RnR Market Research, this industry is projected to exhibit a CAGR of over 13.3% during 2016-2021.

Medtronic’s consistent efforts to reap benefits out of this is completely strategic. Its AF solutions business, in the last reported fourth-quarter 2017 grew in the mid-30s (percentage more than twice the market growth). This strong quarter was based on its aortic plan advanced following the FIRE AND ICE trial, which was published in the New England Journal of Medicine.

We expect the latest development to add further impetus to the company’s growth trajectory in this niche.

 

Price Performance

In the last one month, Medtronic has underperformed the Zacks categorized Medical Product industry. Per the last share price movement, the stock has added 4.8% compared with the 5% gain of the broader industry.

Zacks Rank & Key Picks

Medtronic currently carries a Zacks Rank #3 (Hold). Some better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Both 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 has added roughly 21% in 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 96%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has added roughly 17% in the last three months.

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