Medtronic plc MDT recently announced the receipt of the FDA’s approval for the Android version of its Guardian Connect continuous glucose monitoring (CGM) system. The Guardian Connect CGM system, a standalone CGM system, is useful in alerting patients of glucose level fluctuations up to 60 minutes in advance. Notably, this enables the diabetic patients to take necessary precautions to avoid any untoward incident.
Per the medical fraternity, a real-world data analysis has proved that patients using low predictive alerts can significantly avoid a fall in glucose levels, unlike patients not using such alerts. This low detection is important for the patients, who are not experiencing any warning signs or symptoms of a fall in glucose levels. Thus, the provision of the technology, irrespective of the operating system in use, is noteworthy.
Medtronic expects to begin shipping the updated version of the Guardian Connect system with Android compatibility in summer this year. Further, existing Guardian Connect customers will be notified this summer about how they can update their app to receive the latest functionality.
With the latest advancement in CGM systems, Medtronic aims to solidify its foothold in the global diabetes market.
Significance of the Approval
The Guardian Connect system leverages the Guardian Sensor 3, which is the most advanced glucose sensor from Medtronic. This enables it to accurately alert users of lower glucose levels most of the time, thus instilling confidence in the users. The Android compatibility for the Guardian Connect system expands its reach to more customers, who can monitor their glucose levels discreetly on their smartphones.
The Guardian Connect app includes various enhancements to further improve user experience, including easier product setup through the in-app Startup Wizard and personalized volume adjustments. Non-diabetic customers can also use the system to monitor glucose levels for others.
Per a report by Allied Market Research, the global CGM systems’ market size was valued at $1,774.2 million in 2019 and is expected to reach $8,844.9 million by 2027, witnessing a CAGR of 22%. Factors like the rise in the elderly population and a surging diabetes population are expected to drive the diabetes market.
Given the market potential, the latest advancement is well timed
Recent Developments in Diabetes Group
Of late, Medtronic has been making impressive progress in this business.
The company’s Diabetes Group witnessed strong demand for diabetes supplies, including continuous glucose sensors and infusion sets, particularly in international markets, during the fourth quarter of 2020.
Medtronic announced an expansion of the Medtronic Assurance program in May, which has a new option to support diabetic customers, who have lost their health insurance due to COVID-19-related job loss. Currently, eligible U.S. customers can receive a three-month supply of glucose sensors, infusion sets and reservoirs free of charge.
In March, Medtronic announced the launch of two new solutions by its Medtronic Care Management Services (MCMS) business. These solutions have been designed to assess, monitor and triage support for patients concerned about COVID-19 and its symptoms.
Further, the company has already launched its Respiratory Infectious Disease Health Check for existing MCMS customers and is now launching a COVID-19 Virtual Care Evaluation and Monitoring solution. The latter is currently available to U.S. health systems, health plans and employers.
Shares of the company have gained 1.8% in the past year compared with the industry’s 0.3% growth and the S&P 500’s 4.5%.
Zacks Rank & Stocks to Consider
Currently, Medtronic carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Aphria Inc. APHA, Surmodics, Inc. SRDX and Owens Minor, Inc. OMI.
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
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