Devices & Diagnostics

Analyst: Medtronic will likely acquire another hypertension therapy firm

Medtronic CEO Omar Ishrak has signaled that executives have to meet his strict criteria on […]

Medtronic CEO Omar Ishrak has signaled that executives have to meet his strict criteria on acquisitions, but he may have to relax the rule in one product group.

One  analyst believes that to cement its leading position in a therapy that treats patients with uncontrolled hypertension, the Minnesota device maker will likely have to make an acquisition.

Right now, Medtronic is ahead of the pack in the field of renal denervation. Its Simplicity renal denervation system is approved in Europe and patients are being enrolled in a U.S. clinical trial. The system uses energy delivered through a catheter to the renal arteries to control blood pressure in people who do not respond to medication. The technology came to Medtronic through the $800 million Ardian acquisition.

But while the Simplicity system works well — it didn’t hurt the kidneys and reduces blood pressure even after six months following treatment — the device is not very simple to use.

In fact, it’s  “a little bit unwieldy,” said Debbie Wang, a Morningstar analyst. The procedure can take up to an hour with about 30 to 40 minutes of ablation.

“You have to turn the device and ablate, turn and ablate,” Wang said.

St. Jude Medical is also developing a product to treat hypertension using ablation. Apparently it has developed a catheter that doesn’t require that much manipulation and is expected to get European regulatory approval by the end of the year.

Aside from St. Jude Medical, its Minnesota rival, there are many companies, near and far trying to develop a better product, Wang said.

One is ReCor Medical whose Paradise System recently won CE Mark. Wang said that the Paradise procedure time is about five minutes. Another is Ablative Solutions Inc.

She said it’s unlikely that Medtronic will be able to develop a faster, less cumbersome product internally.

“You bet they are keeping a close eye on all the other companies out there trying to build a better mousetrap,” Wang said. “Medtronic will probably make another acquisition to stay in the lead.”

[Photo Credit: freedigitalphotos user renjith krishnan]

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