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The American Medical Association approved new permanent billing codes for two of Medtronic's technologies, the Symplicity Spyral system for high blood pressure and the Altaviva system for bladder control. These codes, known as CPT codes, are the standard language used by doctors and insurers to process payments for medical procedures.
Moving from temporary or generic codes to permanent ones is a major step for any medical device. It makes it much easier for hospitals to get paid by insurance companies, which usually leads to more doctors adopting the technology. For Medtronic, this removes a significant hurdle for two products that are central to its plans for long-term growth.
Source: PRNewsWire
Medtronic received FDA clearance in the US and the CE Mark in Europe for its latest cardiac mapping and ablation software. These tools are used during procedures to treat atrial fibrillation, a common type of irregular heartbeat, by helping doctors visualize the heart's electrical signals and ensure treatment tools are in the right position.
While software updates are routine, these milestones support Medtronic's push to lead in the fast-growing field of cardiac ablation. Success here is important because it helps the company defend its core heart-device business against newer competitors while moving into more advanced, high-margin technology.
Source: PRNewsWire
Medtronic received U.S. approval to use its LigaSure Maryland jaw device with its Hugo robotic surgery system. This tool helps surgeons seal blood vessels during procedures and has already been used in millions of traditional surgeries. Bringing it to the robotic platform makes the Hugo system more useful for a wider range of operations.
This is a step forward for the company's goal of taking market share in robotic-assisted surgery. By adding familiar, trusted tools to its new robotic system, Medtronic makes it easier for hospitals to choose its technology over established rivals. Success in this category is a major part of the company's plan to speed up its overall growth.
Source: PRNewsWire
Medtronic has officially started the process to separate its diabetes business, MiniMed, into an independent company. Shareholders have the option to exchange their current Medtronic shares for shares of the new company in a way that is generally tax-free for U.S. investors.
This move is part of a plan to simplify Medtronic by letting go of a business that requires different types of investment than its core heart and surgical tools. For the company, this should lead to a more focused business and potentially higher profit margins. For shareholders, it offers a choice between staying with the broad medical device giant or owning a specialized company focused entirely on insulin pumps and diabetes technology.
Source: PRNewsWire
Wells Fargo maintained its positive view on the medical device maker this week. The firm set a target of $104, which is about 15 percent higher than where the stock is currently trading. Other analysts have also been nudging their targets up lately, bringing the average across all firms to about $98. This support follows a strong run of news for the company, including higher sales in its robotic surgery and heart platforms. While a target is just an estimate, the steady rise in these numbers suggests analysts are becoming more confident that the company's shift toward high-tech surgery and diabetes tools is working.
Source: Wells Fargo
Management has cleared the analyst target every quarter for two years. These small, steady beats show a team that sets a conservative bar and hits it with high reliability.
| Expectation | |
|---|---|
| EPS | $1.34 |
| Revenue | $9.48B |