Abbott (ABT - Free Report) recently announced the receipt of new national coverage for its dorsal root ganglion (DRG) neurostimulation pain therapy through Aetna (AET - Free Report) . Notably, Aetna plans to provide access to Abbott's DRG therapy to those suffering with chronic pain out of its more than 22 million medical plan members.
This move is expected to boost the uptake of Abbott’s DRG therapy. Moreover, we encouragingly note that Aetna already covers Abbott's spinal cord stimulation therapies.
What is DRG therapy?
Covered by Medicare, DRG therapy is a form of neurostimulation that specifically targets the dorsal root ganglion. This system has been shown in a lot of clinical studies to provide superior pain relief to patients with neuropathic conditions, including chronic pain following hernia repair, total joint replacements or amputation.
Per Abbott, nearly 1.5 billion people suffer from chronic pain across the globe. Further, going by a report by Market Research Future, the global neuropathic pain market is expected to see a CAGR of 5.5% between 2017 and 2023. In view of this, we believe the recent development will help boost the top-line contributions from the Neuromodulation business within the Medical Devices segment.
Abbott’s Chronic Pain Portfolio in Detail
Abbott offers a wide range of chronic pain therapy solutions. The company offers radiofrequency ablation and spinal cord stimulation therapy solutions, including BurstDR stimulation, along with stimulation of the dorsal root ganglion, for treating chronic pain.
Share Price Performance
Abbott has been gaining investor confidence on consistently positive results. Over the past year, the company’s share price has outperformed the industry. The stock has gained 26.2%, higher than the industry’s gain of 18.2%.
Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Integer Holdings’ expected long-term earnings growth rate is 15%. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #1, at present.
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