Medtronic plc’s (MDT - Free Report) Canadian subsidiary Medtronic of Canada Ltd., recently announced the receipt of Health Canada license for its MRI-guided laser ablation technology for use in cranial neurosurgery procedures.
The Visualase MRI-Guided Laser Ablation System allows to accurately target while ablating undesirable and damaging soft tissues without harming the adjacent healthy tissues. We believe the recent development will aid in boosting top-line contributions from the Brain Therapies division of Medtronic.
According to the Canadian Cancer Society, around 3,000 Canadians were diagnosed with brain and spinal cord cancer. Per Mordor Intelligence report, the Canadian minimally invasive devices market is likely to reach a worth of $4.59 billion in 2019, at a CAGR of 8.5% between 2014 and 2019. In view of the data, the receipt of license is expected to help Medtronic cash in on the bountiful opportunities in the niche market.
A Glimpse of the Brain Therapies Arm
In Brain Therapies, which now includes Neurovascular and Neurosurgery businesses, the company has been witnessing sturdy growth. The Neurovascular business grew mid-teens on high-twenties constant currency growth of stents for acute ischemic stroke, including the Solitaire Platinum, in the recently reported quarter. The company also witnessed strong growth in neuro access products, coils and intrasaccular therapies, flow diversion products.
The Neurosurgery business grew in the high-single digits on solid capital equipment sales of the StealthStation S8 surgical navigation system, Visualase MRI-Guided Laser Ablation System and Mazor X robotic guidance systems for spine surgeries.
Medtronic has been consistently trying to strengthen its Brain Therapies unit. In April, the company had announced the CE Mark receipt and launch of the Visualase MRI-Guided Laser Ablation System in Europe.
Medtronic also announced the U.S. launch and receipt of FDA approval for its Deep Brain Stimulation Clinician Programmer and Activa Programming Application in June. Notably, the product has been made available in Europe.
Share Price Movement
Medtronic has been gaining investor confidence on consistently positive results. Over a year’s time, the company’s share price has outperformed its industry. The stock has gained 11.7% against the industry’s 2.8% decline.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Intuitive Surgical, Inc. (ISRG - Free Report) , Illumina, Inc (ILMN - Free Report) and Veeva Systems (VEEV - Free Report) .
Intuitive Surgical has long-term expected earnings growth rate of 15.6% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Illumina’s long-term earnings growth rate is projected at 23.4%. The stock carries a Zacks Rank #2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.
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