Medtronic (MDT), a large medical technology, services, and solutions company, announced that the U.S. Food and Drug Administration (FDA) has approved its two AccuRhythm AI algorithms to use with the LINQ II insertable cardiac monitor (ICM).
AccuRhythm AI is designed to apply artificial intelligence (AI) to heart rhythm event data collected by LINQ II, in order to provide more accurate information to doctors. This, in turn, helps physicians to better diagnose and treat abnormal heart rhythms, the company said.
With the FDA approval, the new cloud-based AccuRhythm AI algorithms will be able to complement the small, wireless ICM in providing more accurate heart rhythm alerts. (See Medtronic stock charts on TipRanks)
Reacting positively to the news, Medtronic’s Cardiovascular Diagnostics and Services business President Julie Brewer said, “We are excited to integrate AI capabilities to further elevate the accuracy of LINQ II ICM – and provide clinicians with greater confidence in patient care decisions.”
Brewer added, “We look forward to introducing additional diagnostic innovations to advance patient management in the future.”
The AccuRhythm AI algorithms are likely to be released on the CareLink Network in the latter half of 2021, and will be used by all implanted LINQ II devices in the United States.
Last month, Piper Sandler analyst Matthew O’Brien maintained a Buy rating and a price target of $140 (7.3% upside potential) on the stock.
Following numerous Class I recalls and “mounting evidence of patient injuries and deaths” linked to the HeartWare HVAD pump system, Medtronic announced that it will terminate the distribution and sale of that device. Though O’Brien considered the news to be “certainly disappointing,” he was not taken aback by the company’s decision and believes the company to be more focused on profitable areas of the business. Therefore, he maintained a bullish stance on the stock.
The consensus rating among analysts is a Strong Buy based on 16 Buys versus 2 Holds. The average Medtronic price target stands at $141.82 and implies upside potential of 8.7% to current levels. Shares have gained 32.2% over the past year.
On top of this, Medtronic scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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