Medtronic shares rise after CMS coverage analysis by Investing.com

Investing.com – Stocks Medtronic plc (NYSE:) rose 3% after the company announced that the Centers for Medicare and Medicaid Services (CMS) has begun a National Coverage Analysis (NCA) of the Symplicity Spyral Renal Denervation System, a device designed to treat patients with high blood pressure.

The announcement was made by Medtronic, a global leader in healthcare technology, stating that CMS’s decision was in response to Medtronic’s request to support Medicare beneficiaries’ access to the Symplicity Spyral system. The system is currently used in the Symplicity Blood Pressure procedure, a minimally invasive treatment option for high blood pressure. CMS’s action is viewed as a positive step toward establishing a national Medicare coverage policy for renal denervation procedures.

Jason Weidman, senior vice president of Medtronic, expressed appreciation for CMS’s efforts to accelerate access to advanced technologies like Symplicity Spyral. The company looks forward to continuing its partnership with CMS in developing the national coverage policy. The expected completion date for the national coverage analysis is October 11, 2025, but until then, analogue blood pressure procedures will be evaluated for coverage based on medical necessity for individual Medicare patients.

Citi analyst Joanna Wuensch maintained a Neutral rating and $92.00 price target on Medtronic, highlighting the importance of the CMS announcement as a step in the right direction following Medtronic’s clinical trial journey and recent transitional status granted in November. Wunsch pointed to the potential revenue opportunity for analogue blood pressure procedures, noting that a 1% target segment penetration could represent more than $1 billion in revenue.

Furthermore, TD Cowen analyst Joshua Jennings commented on the development, saying, “Today’s announcement represents an important development in MDT’s ongoing efforts to provide access to renal denervation to Medicare beneficiaries.” While a final national coverage determination (NCD) is pending, individual Medicare patients could still be evaluated for coverage based on medical necessity, Jennings noted.

Investors appear to be responding favorably to the news, as the potential for expanded Medicare coverage could lead to increased adoption and revenue for Medtronic’s Symplicity Spyral system.

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