Investing.com — Shares of Medtronic plc (NYSE: ) rose 3% after the company announced that the Centers for Medicare & Medicaid Services (CMS) has initiated a nationwide review (NCA) of the Symplicity Spyral Renal Denervation System, a device designed to treat patients with hypertension.
The announcement was made by Medtronic, a global leader in healthcare technology, stating that the CMS decision was a response to Medtronic's request to support Medicare beneficiaries' access to the Symplicity Spyral program. The system is currently being used in the Symplicity blood pressure system, which is a small blood pressure treatment system. CMS's action is seen as a positive step toward establishing a national policy for Medicare coverage of kidney transplant procedures.
Medtronic's senior vice president, Jason Weidman, expressed gratitude for CMS' efforts to accelerate access to successful technologies such as Symplicity Spyral. The company looks forward to continuing its collaboration with CMS in developing a global policy. The expected date for completing the national analysis is October 11, 2025, but until then, Symplicity's blood pressure programs will be evaluated for safety based on medical need for Medicare patients.
Citi analyst Joanna Wuensch maintained a neutral rating with a $92.00 price target on Medtronic, citing the importance of the CMS announcement as the right step after Medtronic's clinical trial journey and the latest Transitional Pass-Through status given in November. Wuensch noted the potential revenue opportunity for Symplicity's blood pressure system, noting that a 1% penetration of the target level could represent more than $1B in revenue.
Additionally, TD Cowen analyst Joshua Jennings commented on the development, saying, “Today's announcement marks an important development in MDT's ongoing efforts to provide access to renal denervation for Medicare beneficiaries.” Jennings indicated that while the final national determination (NCD) is still pending, individual Medicare patients may still be evaluated for coverage based on medical need.
Investors seem to respond positively to the news, as the potential to expand Medicare coverage may lead to increased adoption and revenue for Medtronic's Symplicity Spiral system.
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