Medtronic launch could create an overhang on AtriCure, says Needham

After Medtronic (MDT) announced yesterday that it has initiated a limited U.S. release of its Penditure Left Atrial Appendage Exclusion System, Needham analyst Mike Matson notes that the Medtronic system competes with AtriCure’s (ATRC) AtriClip, which the firm calls “an important product” that accounts for 34% of its total sales and was previously the only surgical LAA exclusion device on the U.S. market. While the firm believes that this news “could create an overhang” for AtriCure shares, it says that at this point it’s unclear how well the product works and Needham maintains its Buy rating and $49 price target on AtriCure as it learns more about Penditure.