Medtronic plc MDT recently announced favorable outcomes of a study, which highlights that cancer patients treated on targeted drug delivery (TDD) along with conventional medical management (CMM) witness a reduction in healthcare expenses and utilization compared to those only on CMM. The results were published in JAMA Network Open.
The study was a retrospective propensity-score matched analysis, which was conducted using a large U.S. claims database. The mean total commercial payer costs and healthcare utilization, at two, six and 12 months, were compared as part of the study.
The outcome of this study marks significant progress for Medtronic’s restorative therapy group.
Results of the Study
The study data demonstrates that patients on TDD along with CMM witnessed some major benefits like significant cost savings, fewer inpatient visits, lesser duration of hospital stays and fewer prescriptions for oral opioids compared with those on CMM alone.
TDD has been proved to be a safe, effective and cost-efficient pain therapy for cancer patients with life expectancy of at least three months. Researchers found that at four weeks, 60% of cancer patients using TDD along with CMM reported a pain score of less than four compared to 42% using only CMM. This apart, patients on the combined treatment were reported to be experiencing better pain relief, with fewer side effects like lesser vomiting and confusion, fewer behavior alterations, and lesser fatigue and drowsiness.
Per Allied Market Research, the global cancer pain market is huge and growing. It is projected to reach a worth of $7.54 billion by 2025, progressing at a CAGR of 4.5% during the forecast period of 2018-2025.
Recent Studies by Medtronic
Of late, Medtronic has been developing and launching several innovative products to boost its restorative therapy group.
In January, Medtronic announced the U.S. commercial launch of the Mazor X Stealth Edition for spine surgery. The Mazor X Stealth Edition offers a fully-integrated procedural solution for surgical planning, workflow, execution and confirmation.
Within Neurovascular, the company recently limited the market release of 071 react catheter and expects to launch its next-generation solitaire stent for ischemic stroke by the end of fiscal 2019.
Recently, the company announced that it has been developing InterStim micro, a 3CC sacral nerve micro stimulator, which should enable bladder control with full-body MRI compatibility.
In fiscal 2020, the company expects to launch its DBS primary cell device with unique sensing capabilities. This is the first of a series of disruptive product launches planned for the company’s DBS business.
Over the past year, Medtronic’s stock has rallied 12.9% compared with the industry’s growth of 12%.
Zacks Ranks and Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Stryker Corporation SYK, Penumbra, Inc. PEN and Amedisys, Inc AMED. Notably, each of these stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker’s long-term earnings growth rate is projected at 10%.
Penumbra’s long-term earnings growth rate is estimated at 20.9%.
Amedisys’s long-term earnings growth rate is projected at 19.7%.
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