Medtronic Offers Arc Catheter to Treat Ischemic Stroke in US
Medtronic plc MDT recently launched its Arc support catheter in the U.S., which ensures the fastest restoration of blood flow in complicated anatomical patients suffering from acute ischemic stroke. The launch reflects this MedTech giant’s efforts to expand the thrombectomy product line under the Neurovascular division. This is in sync with one of the company’s primary growth strategies — therapy innovation.
Notably, this Arc catheter is currently used in conjunction with the company’s FDA-approved Solitaire stent retriever, to facilitate easy removal of blood clot and quick restoration of blood flow through arteries in stroke patients.
Currently, stroke is the fifth leading cause of death in the U.S. and claims nearly 6 million lives globally. Ischemic stroke is caused due to obstructing blood clots and account for about 87% of all strokes indicating huge untapped potential of this market.
Traditionally, most of the ischemic stroke patients are treated with tissue plasminogen activator (tPA), the only FDA-approved drug used for such condition. However, in patients with blood clots in the larger arteries, tPA often fails to completely dissolve the clot. In such cases, a mechanical thrombectomy procedure is administered using a stent retriever like Medtronic’s Solitaire device.
Statistically, of the 695,000 acute ischemic stroke victims in the U.S., about 240,000 are eligible for treatment with a stent retriever, like the Solitaire device. However, while these devices are available at more than 500 hospitals in the country, only about 13,000 procedures are performed annually. So there is a wide, underpenetrated market for such stent retriever providers in the ischemic stroke spacee.
Going forward, we believe the recent U.S. launch of the Arc catheter will allow Medtronic to capture a larger share of the global acute ischemic stroke diagnosis and treatment market, which is estimated to reach a value of $1.9 billion by 2020.
Moreover, the recently published stroke treatment guidelines, of the American Heart Association/American Stroke Association (AHA/ASA), have recommended the usage of the stent retriever technology — such as the Solitaire device — along with the current standard of care, tPA, for eligible patients. This recommendation also exhibits a profitable prospect for such thrombectomy product line of Medtronic in treating acute ischemic stroke patients.
A closer look at Medtronic’s recent history will reveal that it has expanded the Neurovascular business, particularly soon after the completion of its Covidien expansion in Jan 2015. Evidently, this business’ Pipeline Flex Embolization Device received the FDA approval in Feb 2015, following which the medical device major initiated its limited launch in the U.S.
More recently, in Sep 2015, Medtronic purchased California-based Medina Medical – a developer of minimally-invasive devices for treating brain aneurysms and stroke – for $150 million. Post acquisition, the company believes Medina’s unique Embolization Device will benefit its neurovascular product portfolio, particularly in the hemorrhagic stroke space. This will allow the company to garner higher profits in its Restorative Therapies Group (RTG) segment.
All these are in line with Medtronic’s initiative to create the industry's first true comprehensive stroke management business. Going forward, we expect the addition of many more advanced therapy options in this space under Medtronic’s brand name.
Currently, Medtronic has a Zacks Rank #3 (Hold). Some better-ranked medical product stocks are ICU Medical, Inc. ICUI, OraSure Technologies, Inc. OSUR and NuVasive, Inc. NUVA. All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MEDTRONIC (MDT): Free Stock Analysis Report
ORASURE TECH (OSUR): Free Stock Analysis Report
NUVASIVE INC (NUVA): Free Stock Analysis Report
ICU MEDICAL INC (ICUI): Free Stock Analysis Report
To read this article on Zacks.com click here.
