Medtronic's (MDT) NuVent Balloon to Strengthen ENT Business
Medtronic MDT recently launched the NuVent Eustachian tube dilation balloon. This development came on the heels of the FDA approval of this single-use device for the treatment of chronic, obstructive Eustachian Tube Dysfunction.
This latest addition is expected to broaden Medtronic’s Ear, Nose, and Throat business, which is part of the Neuroscience portfolio.
What is Eustachian Tube Dysfunction?
The Eustachian tube is a narrow passage connecting the pharynx to the cavity of the middle ear. This tube helps in balancing the air pressure behind both the eardrums.
Going by Cleveland Clinic’s definition, obstructive Eustachian tube dysfunctionoccurs when the tubes don’t open properly. As a result, fluid may build up in the ears and the patient may experience pain or pressure. Many people with obstructive Eustachian tube dysfunction experience muffled hearing as well.
Effectiveness of the Nuvent Balloons
Balloon dilation is an effective treatment option to treat Eustachian tube dysfunction. It restores proper Eustachian tube function and reduces symptomslike pain, pressure, and hearing difficulties.
Image Source: Zacks Investment Research
Nuvent balloons are one-time use devices featuring a flexible balloon section that allows customized placement based on patient anatomy. Plus this minimally invasive treatment option offers to deliver treatment in an outpatient or office setting, making the procedure easy and accurate.
Industry Prospects
Per JAMA Otolaryngol Head Neck Surg 2019, as stated by Medtronic, it is estimated that 4.6% of the adults in the United States experience Eustachian tube dysfunction. Medtronic noted that, if not treated, patients may also suffer damage to the middle ear and eardrum
Further, going by the Acumen Research and Consulting report as published in Globe Newswire, the global ear infection treatment market is expected to witness a CAGR of around 8.5% from 2021 to 2028 and reach around $9.6 billion.
Considering this market prospect, we believe Medtronic’s latest development is well timed and strategic.
Recent Updates in Neuroscience
Within Medtronic’s neuroscience portfolio, Medtronic in its just-reported third quarter of fiscal 2022, has increased market share in cranial and spinal technologies. The company is launching spine implants that enhance the overall value of the company’s ecosystem of preoperative planning software, imaging, navigation, and robotic systems as well as powered surgical instruments, all of which are transforming care in spine surgery. In Neuromodulation, it has shown strong momentum from new products in both Pain Stim and Brain Modulation.
Share Performance
Over the past year, Medtronic has outperformed the industry. The stock has declined 10.9% compared with the industry’s 15% decline.
Zacks Rank and Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Henry Schein, Inc. HSIC and West Pharmaceutical Services, Inc. WST.
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 23.8% versus the 62% industry decline.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #1.
Henry Schein has gained 6.1% compared with the industry’s 1.7% rise over the past year.
West Pharmaceutical has a long-term earnings growth rate of 27.6%. West Pharmaceutical surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST currently carries a Zacks Rank of 2.
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 PLC (MDT) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report
To read this article on Zacks.com click here.
