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Here’s What Could Boost Medtronic’s Growth in Fiscal 2019

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TAVR potential and growth

The transcatheter aortic valve replacement market is growing at a high rate. The market is expected to grow to more than $4 billion by 2021. In Medtronic’s (MDT) fiscal fourth quarter of 2018, the continued adoption of the Evolut Pro system led the company’s TAVR (transcatheter aortic valve replacement) growth of ~20%, which was above market growth.

Edwards Lifesciences (EW) is the leading player in the TAVR market. Abbott Laboratories (ABT) and Boston Scientific (BSX) are expected to launch their TAVR products in fiscal 2019.

Recent TAVR study results

On May 29, six years of follow-up data from the NOTION trial showed favorable results related to valve hemodynamic performance and structural deterioration from the treatment of low-risk patients with TAVR with the CoreValve device compared to surgical bioprostheses.

CVG segment performance led by Evolut Pro TAVR device

In the fiscal fourth quarter of 2018, which ended on April 27, Medtronic registered sales of $3.1 billion for its CVG (Cardiac and Vascular Group) segment. That was a YoY (year-over-year) rise of 5.4% on a constant currency basis. The segment includes CRHF (Cardiac Rhythm & Heart Failure), CSH (Coronary & Structural Heart), and APV (Aortic & Peripheral Vascular) divisions, which registered sales growth of 1.5%, 12.8%, and 4.8%, respectively, on a constant currency basis in its fiscal fourth quarter.

The CSH division’s strong growth in the quarter was driven by the constant currency growth of its transcatheter aortic valves, led by the strength of the CoreValve Evolut Pro. The company expects its CoreValve Evolut Pro to be one of its major growth drivers in fiscal 2019.

In the next part, let’s look at Medtronic’s key growth driver, the emerging market.

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