Medical devices major Medtronic (NYSE:MDT) is expanding its AI-driven partnership with Cosmo Intelligent Medical Devices, a subsidiary of Cosmo Pharmaceuticals.
The two partners have already achieved considerable success with the GI intelligent endoscopy module. Now, the global partnership aims to harness the power of AI to improve outcomes in endoscopy. GI Genius is Medtronic’s first AI product in gastrointestinal care to receive approval from the U.S. Food and Drug Administration. Since its U.S. launch in 2021, the module has experienced a continuous increase in its install base.
Now, the two companies are looking to further enable the GI Genius platform to offer better AI solutions and deliver outcomes across the globe. Under the deal, Cosmo will receive an upfront payment of $100 million and sales royalties in the double-digits from Medtronic. The company will continue to act as the exclusive manufacturer and stands to make a further $100 million in potential milestone payments. Meanwhile, Medtronic will hold the exclusive, global, commercial rights for the platform.
Last month, Medtronic delivered a robust second-quarter performance with strength across its businesses and geographies. Further, the company raised its financial outlook for Fiscal Year 2024. Indeed, it now expects an EPS of $5.13 to $5.19 and revenue growth of 4.75% for the year.
What is the Future of MDT Stock?
Overall, the Street has a Moderate Buy consensus rating on Medtronic, and the average MDT price target of $88.13 implies an 11.1% potential upside in the stock. That’s on top of a nearly 10% jump in the company’s share price over the past month.
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