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Medtronic's (MDT) MiniMed 670G Gains German Reimbursement

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Medtronic plc. (MDT - Free Report) recently announced that its MiniMed 670G insulin pump system secured German reimbursement. This achievement marks a major regulatory breakthrough for the company. The German Federal Association of the Statutory Health Insurances (GKV-SV) has granted the same for Type 1 diabetes. This reimbursement agreement was effective Aug 29, 2019.

By dint of this deal win, Medtronic’s diabetics business in Europe will undoubtedly gain a plum market share considering that the MiniMed 670G system is the only commercially available technology in the world that personalizes the delivery of basal insulin 24 hours a day based on real-time insulin needs.

Market Potential

An ageing population, unhealthy lifestyle, rising awareness and higher expenditure on healthcare are likely to drive the highly competitive diabetes market. Per Allied Market Research, the global diabetes care devices market was valued at $6.86 billion in 2016 and is estimated to reach $10.20 billion by 2023 at a CAGR of 5.8% from 2017 onward.

In this regard, Medtronic noted that Type 1 diabetes is the most common metabolic disease among children and adolescents. In Germany alone, 30,500 individuals under the age of 19 are currently affected by this ailment and the trend is increasing. Therefore, the recent development is well-timed.

Medtronic’s Progress With MiniMed

Since its launch in 2018, the MiniMed 670G made a strong advancement in the United States. With the product currently being launched in several new international markets, it is experiencing similar consumer demand across these regions as well. Per Medtronic, currently 200,000 people across the world are using this smart insulin pump.

Recently, Medtronic has submitted its non-injunctive labeling application to the FDA and is preparing for the launch of the MiniMed 780G, its advanced hybrid closed loop system with Bluetooth connectivity in the second half of the current fiscal.

Price Performance

In the past year, the company’s shares have outperformed its industry. The stock has rallied 14.4% compared with the industry’s 1.8% rise.

Zacks Rank & Other Key Picks

Medtronic currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader medical space are Amedisys (AMED - Free Report) , Baxter (BAX - Free Report) and NuVasive , each carrying the same solid Zacks Rank as Medtronic. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amedisys ’s long-term earnings growth rate is expected to be 7.13%.

Baxter’s long-term earnings growth rate is projected at 12.8%.

NuVasive’s long-term earnings growth rate is estimated to be 12.75%.

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