Medtronic plc.'s MDT Diabetes Management segment is dominating the headlines of late. Following the company’s receipt of the CE Mark approval for its advanced continuous glucose monitoring (CGM) system — the Envision Pro CGM — last week, it tasted another success in Europe.
This time, the company announced favorable real-world clinical outcomes of its MiniMed 670G insulin pump system with respect to European patients. Going by the press release, the real-world data showed average Time in Range of 73% pertaining to these European patients. This result exceeds the recently published recommended Time in Range 70% set by the consensus guidelines.
Notably, MiniMed 670G system comprises a feature called SmartGuard Auto Mode. This automates and personalizes the delivery of basal insulin 24 hours a day. The system is the only commercially available technology that provides protection against highs and lows. It also steadily supports the Time in Range so that it reaches the target of 120 mg/dL throughout the day.
In this regard, the clinical guidelines set for the Time in Range ascertain the target of effective diabetes management in the range of 70-180 mg/dL for at least 70% of time. However, MiniMed 670G with its SmartGuard Auto Mode has crossed this target in a real-world setting in its first year of use in Europe. According to Medtronic, this positive result implies additional reassurance to healthcare professionals and patients, marking it as the highest standard of care for diabetes available today.
Since its launch in 2018, the MiniMed 670G has made a strong advancement in the United States. With the product currently being launched across several untapped international markets, it is experiencing similar consumer demand in these regions. Per Medtronic, 200,000 people across the world are currently using this smart insulin pump.
Medtronic’s Progress Within Diabetes Management
Last week, Medtronic announced winning the regulatory nod for its Envision Pro CGM in Europe. Following this upside, the device will be commercially available in Europe and the Middle East later this year, subject to fulfillment of local regulatory requirements. The progress in the technology will enable medical professionals and patients with either type 1 or type 2 diabetes to monitor accurate glucose levels and trends over time to opt for more informed therapy plans.
The company achieved another milestone in September when it entered into a partnership deal with Novo Nordisk A/S to develop solutions for assimilating the insulin dosing data from future Novo Nordisk smart insulin pens into the company’s CGM devices, such as the Guardian Connect system.
In late August, MiniMed 670G system secured German reimbursement. This achievement marks a major regulatory breakthrough for the company. The German Federal Association of the Statutory Health Insurances (GKV-SV) granted the same for Type 1 diabetes. With this feat, Medtronic’s diabetics business in Europe is going to grab a substantial market share considering that the MiniMed 670G system is the only commercially available technology in the world that personalizes the delivery of basal insulin 24 hours a day based on real-time insulin needs.
Recently, Medtronic submitted its non-injunctive labeling application to the FDA and is preparing to unveil the MiniMed 780G, its advanced hybrid closed loop system, with Bluetooth connectivity in the second half of the current fiscal.
Per an Energias Market Research report, the global CGM devices market is projected to grow significantly from $529 million in 2018 to $1,263 million in 2025, witnessing a CAGR of 12.4%. The major factor driving the market is the increasing incidence of diabetes across the globe and the growing awareness among people. Also, higher adoption of CGM devices is aiding market expansion.
Given the current market prospects of diabetes management, this recognition seems well-timed.
Share Price Performance
The company has rallied 12.7% in the past three months compared with the industry’s growth of 3.8%.
Zacks Rank & Other Key Picks
Currently, Medtronic carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader medical space are Haemonetics HAE, Baxter BAX and Amedisys AMED, each carrying the same solid Zacks Rank as Medtronic.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ long-term earnings growth rate is expected to be 7.13%.
Baxter’s long-term earnings growth rate is projected at 12.8%.
Amedisys’ long-term earnings growth rate is estimated to be 16.26%.
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