In an attempt to offer a comprehensive diagnostic tools portfolio for heart patients, Medtronic, Inc. (MDT) recently launched the SEEQ Mobile Cardiac Telemetry (MCT) System in the U.S. market, following the acquisition of the device's original manufacturer – Corventis, Inc. in June 2014.
The SEEQ MCT System refers to an external, wearable adhesive heart monitoring system which continuously sends a patient's data to the Monitoring Center via cellular signals.
Following this news, Medtronic's share price rose 1.5% to eventually close at $66.19 yesterday.
Medtronic's SEEQ MCT System allows physicians to read critical arrhythmia recordings in patients suffering from irregular heartbeat. This unique external heart monitoring system features a discreet, patient-friendly, water-resistant wireless design which ensures no disruption in a patient's everyday life.
The SEEQ MCT System incorporates a wearable sensor that remotely monitors the patient's heart continuously for up to 30 days. Once applied to the skin, the sensor gets automatically activated, monitors every heart beat and transmits significant cardiac data to the Medtronic Monitoring Center.
The wearable sensor also contains a Patient Trigger button. In case the patient experiences any symptom of irregular heart beat, he or she can push the button and alert the monitoring center without any delay.
Since Medtronic's SEEQ MCT System is easier to use compared to conventional external heart monitoring devices, it is expected that patients will be more willing to wear it continuously. This, in turn, will allow physicians to make proper diagnoses and provide better treatment within the stipulated time.
Medtronic's wireless Reveal LINQ Insertable Cardiac Monitoring (ICM) System was also launched earlier this year, which allows physicians to continuously monitor a patient's heart for up to 3 years. This long-term insertible monitoring system, though more than 80% smaller in size than other ICMs, has the strength to transmit more than 20% data memory compared to its larger predecessor – Reveal XT.
Medtronic's Cardiac Rhythm & Heart Failure segment, which incorporates these heart monitoring devices, has been experiencing positive growth over the past few quarters. The segment achieved 5.3% year-over-year growth in the last reported quarter. Particularly, following the strong global launch of Reveal LINQ in Medtronic's diagnostics business, the company's revenues from the Low Power business increased 10% year over year at CER (constant exchange rate).
Now, with the launch of this short-term monitoring system coupled with the already-in-use long-term monitor released earlier, it is reasonable to expect that Medtronic will strengthen its steady foothold in the global healthcare market.
Currently, Medtronic carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical products industry include ICU Medical, Inc. (ICUI), Abaxis, Inc. (ABAX) and Conatus Pharmaceuticals Inc. (CNAT). While ICU Medical sports a Zacks Rank #1 (Strong Buy), both Abaxis and Conatus hold a Zacks Rank #2 (Buy).
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