Medical device major Medtronic plc MDT recently acquired privately-held medical device company CardioInsight Technologies, Inc. for approximately $93 million on a debt-free basis. This Cleveland-based firm has developed a new method for better mapping of electrical disorders of the heart. CardioInsight will be included in the Medtronic Atrial Fibrillation (AF) solutions business within the Cardiac Rhythm and Heart Failure division.
Medtronic believes this acquisition will boost its AF solutions business as it aligns with the company’s target of delivering advanced technologies for AF and other arrhythmias. According to the company, the inclusion of CardioInsight will broaden and enhance the company’s existing AF Solutions portfolio with meaningful clinical and cost-effective solutions for patients, hospitals, physicians and payers.
Specifically, the company is enthusiastic about CardioInsight’s ECVUE system which generates images of the electrical activity of the heart non-invasively by combining body surface electrical data with 3-dimensional (3-D) anatomical data.
The ECVUE system, which has already been used in more than 1,400 patients in Europe and the U.S alone and has been featured in over 120 peer reviewed journals and presentations, is expected to help Medtronic augment its patient base effectively in these regions. Medtronic expects this buyout to meet its long-term financial metrics for acquisitions.
Medtronic is currently working on expanding its AF menu in consideration that the global market is vastly underpenetrated. Apart from the U.S., Germany and the U.K., Medtronic is focusing on strengthening AF capabilities in other geographies as well. In the last reported quarter, the company witnessed AF Solutions growing over 30% globally, driven by the consistent and robust performance of its second generation Arctic Front Advance CryoAblation System.
Medtronic currently has a Zacks Rank #3 (Hold). Some medical product stocks that warrant a look are Bio-Rad Laboratories, Inc. BIO, Hospira Inc. HSP and Vascular Solutions Inc. VASC. All the three stocks carry a Zacks Rank #1 (Strong Buy).
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