Medtronic (MDT) Buys Stimgenics, To Present New Trial Results
Zacks Investment Research | Jan 09, 2020 07:20AM ET
Medtronic plc (NYSE:MDT) recently acquired Stimgenics, an IL-based company offering a new-generation spinal cord stimulation (SCS) waveform — Differential Target (NYSE:TGT) Multiplexed (DTM) Spinal Cord Stimulation. The DTM therapy will be now delivered through Medtronic’s Intellis platform and is believed to be a new alternative for the treatment of chronic pain.
For investor’s note, the buyout is expected to have a neutral effect on Medtronic’s fiscal 2020 earnings. However, further financial details have not been disclosed.
In the same press release, Medtronic announced plans to present outcomes of a three-month randomized control trial (RCT) at the upcoming North American Neuromodulation Society (NANS) Annual Meeting (to be held between Jan 23 and 26 in Las Vegas). The RCT evaluated the superiority of the DTM against the conventional SCS, followed by an evaluation of outcomes through a 12-month follow-up.
With these recent developments, Medtronic aims to fortify its position in the pain therapies segment of its Restorative Therapies Group business on a global scale.
Rationale Behind the Acquisition
Per Medtronic’s management, this buyout is of strategic importance as it believes that the integration of the DTM therapy will advance the treatment of chronic pain.
The DTM waveform, studied till now in animal models, has demonstrated impressive results by reversing pain behaviors compared to either low frequency or high frequency alone. Also, preclinical studies assessing the nerve-injured animals suggest DTM to have a better impact than other frequencies alone. With these favorable outcomes in sight, Medtronic feels that the acquisition is an important step toward strengthening its spinal cord stimulation systems of its Pain Therapies division.
Industry Prospects
Per a report by Zacks Investment Research
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