tiprankstipranks
Medtronic Nabs FDA Approval For Nerve Monitoring System
Market News

Medtronic Nabs FDA Approval For Nerve Monitoring System

Medtronic plc (MDT) has announced that it has received U.S. Food and Drug Administration (FDA) 510(k) clearance of the NIM Vital nerve monitoring system, which enables physicians to identify, confirm, and monitor nerve function to help reduce the risk of nerve damage during head and neck surgery.

Don't Miss Our Christmas Offers:

According to MDT, the NIM Vital system uses proprietary technology to provide detailed intraoperative nerve condition data that informs surgical strategy, increases operative efficiency and precision, and helps protect patients’ quality of life.

The company also announced that it has further ramped up its ear nose and throat (ENT) portfolio with the recent acquisition of privately-held Ai Biomed Corp., maker of the PTeye parathyroid detection system. The probe-based system is designed to help confirm parathyroid tissue identified visually by the physician during thyroid surgery.

“The addition of these two technologies builds on our 20-year legacy of providing innovative solutions that assist surgeons during critical head and neck procedures,” said Vince Racano, VP of Medtronic’s ENT business.

“By offering these complementary technologies – the NIM Vital system to protect crucial nerves and the PTeye system to help confirm parathyroid tissue identified visually by the surgeon – we’re helping physicians address two of the most common challenges during these procedures.”

The acquisition of Ai Biomed Corp. is the seventh in a series of tuck-in acquisitions that Medtronic has made in 2020. MDT states that the revenue and earnings contribution is expected to be immaterial to the Medtronic ENT business in the first year and accretive thereafter.

Shares in the medical device stock are down 10% year-to-date, but the stock scores a bullish Strong Buy consensus from the Street. That’s with 18 recent buy ratings, vs 3 hold ratings and 1 sell rating.

Meanwhile the average analyst price target of $120 indicates 17% upside potential from current levels.

“Between delays in the development of its robotic system or the stumbles in Diabetes, MDT will still need to prove that it can be a consistent 5% grower, but with MDT’s markets growing at 5% roughly, M&A should provide a cushion to the top-line” comments BTIG analyst Ryan Zimmerman.

He reiterated his buy rating on MDT with a $119 price target arguing that: “Investors should not expect incrementally more return to the bottom line as the focus will be top-line growth reinvestment, but in a market where top-line growth is highly rewarded, we think this strategy makes sense.” (See MDT stock analysis on TipRanks).

Related News:
Gilead Cuts 2020 Guidance As Remdesivir Sales Disappoint
Eli Lilly Ends Covid-19 Trial In Hospitalized Patients On Disappointing Data
Dexcom Drops 9% As Revenue Beat Fails To Impress Investors

Go Ad-Free with Our App