Medtronic Inc. (NYSE:MDT) got a thumbs up for its InterStim sacral nerve stimulation product’s clinical trials and a thumbs down for the share price forecast for its first quarter.
The Minneapolis, Minn.-based device giant published new data on its InterStim device, showing that it reduced episodes of incontinence and increased quality of life at three years follow-up for a majority of patients.
Medtronic, ranked 5th on the MassDevice Big 100 list of the world’s largest medical device companies, won expanded FDA clearance for the InterStim minimally invasive bowel control therapy for use in fecal incontinence in April, 2011.
InterStim is an implanted system consisting of a thin wire lead and a neurostimulator. It competes with Uroplasty Inc.’s (NSDQ:UPI) UrgentPC neuromodulation system, so far indicated for urinary incontinence, which does not require implantation and which notched a couple of reimbursement wins last month.
The new study found that 86 percent of the 77 study participants reported a reduction of incontinent episodes by at least half, and the number of episodes per week decreased from a mean of 9.4 to 1.7. Complete continence was reached in 40 percent of the participants.
"Most people can’t begin to fathom the challenges of living with fecal incontinence, and these patients deserve to find effective treatment solutions," Dr. Anders Mellgren, lead author and clinical professor of surgery at the University of Minnesota, said in prepared remarks. "This large study demonstrates the dramatic long-term impact InterStim Therapy can have on the daily lives of patients dealing with chronic bowel control issues."
The study, sponsored by Medtronic, was published in the September issue of Diseases of the Colon and Rectum.
Meanwhile, before the bell rang on the The Street this morning, Citi analyst Matthew Dodds cut his first-quarter revenue forecast on Medtronic by $95 million to $3.95 billion and lowered his price target to $40 from $46, the Associated Press reported.
Citing the recent market correction that saw huge earnings reductions in several companies, Dodds also cut his earnings forecast to 78 cents per share.
Medtronic’s first fiscal quarter earnings report is scheduled for release on August 23. MDT shares were up 1.5 percent to $32.03 in late afternoon trading today.