Medtronic Initiates Product Recall, A Drag On Neurosurgery
Zacks Investment Research | Apr 09, 2017 10:11PM ET
Medtronic plc. (NYSE:MDT) has initiated a voluntary product recall of all unused units of its StrataMR adjustable valves and shunts based on an increase in the product complaint rate. Shares of the company registered a 0.05% drop following this announcement.
As of Apr 1, 2017, the product complaint rate was 2.75% of total units of StrataMR distributed. In this regard, we note that this neurosurgery product is part of Medtronic’s Brain Therapies division within its Restorative Therapies broader group.
StrataMR works for the management of hydrocephalus and helps in controlling the flow of cerebrospinal fluid being drained from the brain to relieve intracranial pressure.
However, the problem which led to this product recall was that post-implantation it can lead to under-drainage of cerebrospinal fluid. This may result in health consequences like headaches, nausea, vomiting and lethargy. If left untreated, this can lead to coma and death. According to the company, there already was a death, although the reason behind is not confirmed yet.
Taking into consideration the huge number of disputed units of StrataMR already rolled out, we believe this product recall may impact the company’s top line in the ongoing quarter. As of the date of initiation of this recall, there were already 2,622 StrataMR valves and shunts distributed globally. These are going to be potentially affected by this recall.
Medtronic initiated customer communication of the recall by a letter and requested customers to stop using the affected products that remain in inventory and return all unused units to Medtronic. The U.S. Food and Drug Administration (FDA) and other regulatory bodies also have been notified.
Shares of Medtronic traded below the Zacks categorized Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.