Investing.com — Stocks Medtronic plc (NYSE: ) climbed 3% after the company announced that the Centers for Medicare & Medicaid Services (CMS) has initiated a national coverage analysis (NCA) for its Symplicity Spyral Renal Denervation System, a device designed to treat patients with hypertension.
The announcement was made by Medtronic, a global leader in health technology, stating that CMS’ decision is in response to Medtronic’s request to support Medicare user access to the Symplicity Spyral system. The system is currently used in the Symplicity blood pressure procedure, which is a minimally invasive hypertension treatment option. CMS’ action is considered a positive step toward establishing a national Medicare coverage policy for renal denervation procedures.
Medtronic Senior Vice President Jason Weidman expressed his appreciation for CMS’s efforts in accelerating access to breakthrough technologies such as Symplicity Spyral. The company looks forward to continuing to partner with CMS in the development of the national coverage policy. The expected completion date for the national coverage analysis is October 11, 2025, but until then Simplicity coverage of blood pressure procedures will be assessed based on medical necessity for individual Medicare patients.
Citi analyst Joanna Wuensch maintained a Neutral rating and a $92.00 price target on Medtronic, noting the significance of CMS’s announcement as a step in the right direction following Medtronic’s clinical trial and recent interim pass-through status granted in November. Wuensch noted the potential revenue opportunity for Simplicity’s blood pressure procedure, noting that penetration of 1% of the target segment could represent more than $1 billion in revenue.
Additionally, TD Cowen analyst Joshua Jennings commented on the development, stating, “Today’s announcement marks an important development in MDT’s ongoing efforts to provide Medicare beneficiaries with access to renal denervation.” Jennings noted that pending final national coverage (NCD), individual Medicare patients can still be evaluated for coverage based on medical necessity.
Investors appear to be reacting positively 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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