U.S. Markets closed

Medtronic's Positive 2-Year SURTAVI Data Boosts Corevalve

Zacks Equity Research

Medtronic plc MDT released the first-ever clinical data from the Surgical Replacement and Transcatheter Aortic Valve Implantation (SURTAVI) Trial. This provided a boost to its next-generation transcatheter aortic valve replacement (TAVR) device – the CoreValve System and Evolut R System.

In this regard we note that, the SURTAVI trial is a global, prospective, multi-center, randomized study that evaluates superiority of the CoreValve System and CoreValve Evolut R System over open-heart surgery at two years. This SURTAVI trial enrolled intermediate risk patients and compared 863 TAVR patients to 794 surgical aortic valve replacement (SAVR) patients.

The data was presented simultaneously at the 66th Annual Scientific Session of the American College of Cardiology and published in The New England Journal of Medicine (NEJM). It showed that Medtronic’s self-expanding TAVR platform met its primary endpoint of all-cause mortality or disabling stroke at two years.

Per the study, the two year rates of all-cause mortality or disabling stroke were similar to SAVR. Also the minimally-invasive TAVR procedure demonstrated significantly better mean aortic valve gradient at two years. The data also demonstrated that patients who underwent TAVR or SAVR have not displayed evidence of structural valve deterioration at two years.

Medtronic is optimistic about this positive outcome of SURTAVI trial which will help the company speed up the process to support an intermediate risk label expansion in the U.S. Notably, at present, the use of the CoreValve and Evolut R systems in intermediate risk severe aortic stenosis patients is investigational. It had acquired CE Mark in Europe for patients with intermediate risk severe aortic stenosis.

Globally, the heart valves market is estimated to grow at an impressive CAGR of about 14% by 2020, according to a Technavio report. There is a growing demand for less complicated cardiac treatment procedures as normal invasive ones cause complications in patients. The latest data can give a boost Medtronic’s global commitment to build a market-leading innovation pipeline in the transcatheter space.

Share Price Movement

Medtronic has been going through a smooth phase since it released better-than-expected third-quarter fiscal 2017 earnings in February. Share price has consistently remained above the broader Medical - Products industry, over this period. Per the latest movement, the stock is up 1.94%, ahead of the 1.16% gain for the broader industry.

Zacks Rank & Key Picks

Medtronic currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector include Inogen, Inc. INGN, Bovie Medical Corporation BVX and ResMed, Inc. RMD. Inogen sports a Zacks Rank #1 (Strong Buy) while Bovie Medical and ResMed carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen gained 83.2% in the last one year compared with the S&P 500’s gain of 15.9%. The company has a stellar four-quarter average earnings surprise of over 49.08%.

Bovie Medical surged 65% in the last one year compared with the S&P 500. It has a four-quarter average earnings surprise of 28.7%.

ResMed gained over 27.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


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
 
Inogen, Inc (INGN): Free Stock Analysis Report
 
Medtronic PLC (MDT): Free Stock Analysis Report
 
ResMed Inc. (RMD): Free Stock Analysis Report
 
Bovie Medical Corporation (BVX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research