Medtronic plc (MDT - Free Report) recently partnered with global healthcare company Novo Nordisk A/S in the growing diabetes management space. Through this collaboration, the company aims at developing solutions to incorporate insulin dosing data from future Novo Nordisk smart insulin pens into its own Continuous Glucose Monitoring (CGM) devices like the Guardian Connect system.
More About the Collaboration
This deal with Novo Nordisk, the world’s largest producer of insulin, will help in streamlining the distribution of two of the most vital pieces of information required for diabetes management — glucose measurements and insulin dosed.
By combining glucose monitoring and insulin dosing data, diabetes patients as well as their healthcare professionals and caregivers will be able to automatically keep a tab on these two crucial items in a single place, thereby easing the process of diabetes management. This new technology can offer productive insights, thereby ensuring that patients and doctors make more informed decisions on how to manage glucose levels and elevate Time in Range.
In 2020, Novo Nordisk is set to launch durable smart insulin pens, NovoPen 6 and NovoPen Echo Plus, as well as its disposable pre-filled injection solution. The Guardian Connect system will be updated as well to incorporate data from these Novo Nordisk smart pens.
Per Research and Markets.com, the global diabetes care market is estimated to reach a worth of $95.10 billion by 2023, at a CAGR of 5.53% during the forecast period of 2017-2023. Hence this collaboration is well-timed.
Lately, Medtronic has been investing in several key developments in order to strengthen its Diabetes Group.
In September, Medtronic’s the Envision Pro CGM system — a fully disposable, zero calibration professional CGM system — has attained CE Mark approval. The company is on track to commercially release the new system in Europe and the Middle East later this year. This new technology is expected to enable patients of either type 1 or type 2 diabetes to monitor accurate glucose levels and trends over time so that more optimal diabetes treatment plans can be formulated accordingly.
In June 2019, Medtronic and Tidepool, a 501(c)(3) nonprofit organization specializing in diabetes management, partnered to create an interoperable automated insulin pump system. Under this collaboration, Medtronic will be developing a Bluetooth-enabled MiniMed pump that would be compatible with Tidepool Loop, an open source automated insulin delivery app which is currently in the process development.
The stock has rallied 12.5% in the past year compared with the industry’s 1.3% dip.
Zacks Rank and Other Stocks Worth a Look
Medtronic carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Baxter (BAX - Free Report) and Amedisys (AMED - Free Report) , each carrying a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ long-term earnings growth rate is expected to be 13.5%.
Baxter’s long-term earnings growth rate is projected at 12.8%.
Amedisys’ long-term earnings growth rate is expected to be 16.26%.
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