Medtronic plc. (NYSE: MDT), one of the leading healthcare stocks, recently revealed that its spinal cord stimulation therapy for treating chronic pain, resulting from diabetic peripheral neuropathy (DPN), has been approved by the U.S. Food and Drug Administration (FDA).
Shares of the company declined 1.3% to close at $104.21 on Monday. Headquartered in Dublin, Ireland, Medtronic is a leading global healthcare technology company.
DPN occurs when high blood sugar damages nerves in the body, most often in the legs and feet, leading to numbness and burning or stabbing pain. Notably, it is a progressive neurological disorder that affects roughly 30% of people with diabetes.
Intellis, the spinal cord stimulation therapy, is a rechargeable neurostimulator while Vanta is a recharge-free neurostimulator. The purpose of both is to treat chronic pain associated with DPN.
With these approved medications, patients can now gain access to Medtronic’s spinal cord stimulation portfolio of rechargeable and recharge-free platforms, which includes the option to personalize patient therapy and unrestricted MRI access, among others.
The Vice-President of Pain Therapies within the Neuromodulation business at Medtronic, Charlie Covert, said, “DPN is a significant challenge for patients with diabetes, leading to disability and a diminished quality of life. This new indication enables us to apply Medtronic’s more than 40 years of proven SCS experience, as well as the company’s deep diabetes expertise, to deliver better care to even greater numbers of diabetes patients.”
On January 24, Needham analyst Michael Matson reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $131 to $128, which implies upside potential of 22.8% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 11 Buys and 7 Holds. The average Medtronic price target of $128.41 implies that the stock has upside potential of 23.2% from current levels. Shares have declined about 10.9% over the past year.
News Sentiment for MDT is Positive based on 31 articles over the past seven days. 100% of the articles have Bullish sentiment, compared to the sector average of 62%.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.