Medical device makers have been benefiting from increased demand for heart procedures and non-urgent surgeries such as hip and knee replacements over the past few quarters especially among older adults, who deferred these procedures during the pandemic.
Medtronic joins medical device makers such as Abbott Laboratories and Boston Scientific that have also benefited from soaring demand for non-urgent surgeries.
Rivals such as Boston Scientific and Stryker raised their full-year profit forecasts on resilient demand for medical devices, with industry bellwether Johnson & Johnson expecting medtech-related procedures to remain elevated in 2024.
Sales of Edwards' TAVR devices rose 6% to $1 billion in the first quarter while revenue at $1.6 billion beat analysts' estimates of $1.57 billion.
Investor expectations around the performance of medical device makers have been heightened since last November after a resurgence in demand, as people, especially older adults, opted for medical procedures deferred during the pandemic.
In a regulatory filing, Boston Scientific said Axonics has also received a request for additional information from the FTC and both the companies expect to respond promptly.
A deal could be finalized in the coming weeks if talks don't fall apart and it is also possible another suitor could emerge, the report said, citing people familiar with the matter. It did not mention the value of the deal.
The approval makes the device, branded Agent, the first drug-coated balloon catheter in the U.S. to treat coronary in-stent restenosis (ISR) in patients with a type of heart disease. ISR involves accumulation of plaque or scar tissue under the stent, causing a previously opened heart vessel to narrow again.
Expectations around performance of medical device makers have increased over the past month after health insurers flagged higher medical costs as people, especially older adults, undergo medical procedures that were delayed during the pandemic.
Shockwave shares rose 6.9 per cent, while Boston Scientific shares fell 1.9 per cent in morning trade. Shockwave has a market cap of $9.49 billion as of the last close, as per Refinitiv.
Boston Scientific said it would pay HK$20 ($2.57) a share, for a total cash payment of about $523 million, for a 65 per cent stake.
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