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Investing.com - The Centers for Medicare & Medicaid Services (CMS) released its proposed National Coverage Decision for Renal Denervation therapy on Wednesday, potentially benefiting Medtronic , Inc. (NYSE:MDT).
CMS proposed covering renal denervation for uncontrolled hypertension, a development that BTIG considers a win for Medtronic as it continues the launch of its Symplicity Spyral system. The decision opens Medtronic to a substantial patient pool, with CMS noting that approximately 64% of Medicare fee-for-service claims had a hypertension diagnosis in fiscal year 2021. The company, which generates annual revenue of $33.5 billion and maintains a 49-year track record of consistent dividend payments with a current yield of 3.18%, has demonstrated resilience in maintaining shareholder returns.
The coverage criteria specify that patients must have uncontrolled hypertension exceeding 140/90 mmHg confirmed by monitoring, must be on stable, maximally tolerated guideline-directed medical therapy for at least three months, and must be managed by a clinician for at least six months prior with multiple visits.
Facilities offering the procedure must maintain a multidisciplinary hypertension program with experienced clinicians, possess preprocedural imaging capabilities, and have an appropriate interventional cardiology or radiology suite. BTIG analysts note these requirements may limit initial uptake of the therapy.
Following Wednesday’s proposal, a 30-day public comment period will run through August 9, 2025, with CMS planning to post its final decision on October 8, 2025. BTIG maintains a Neutral rating on Medtronic stock. For deeper insights into Medtronic’s valuation and growth prospects, including 8 additional exclusive ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Medtronic has received favorable developments from the Centers for Medicare & Medicaid Services (CMS) regarding renal denervation (RDN) procedures. The proposed National Coverage Determination could potentially create a $5-10 billion market opportunity in the United States for treating patients with uncontrolled hypertension. Following this announcement, Citi reiterated a Buy rating for Medtronic with a $99.00 price target, while Leerink Partners maintained an Outperform rating with a $110.00 price target, highlighting the broader-than-expected reimbursement as a significant catalyst. Additionally, Evercore added Medtronic to its TAP Outperform list, citing favorable market conditions for MedTech companies. In corporate governance, Medtronic appointed Dr. Joon Lee, CEO of Emory Healthcare, to its Board of Directors, where he will serve on the Science and Technology Committee and the Compensation and Talent Committee. These recent developments indicate a positive outlook for Medtronic, as the company also anticipates several product approvals in the coming months.
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