JP Morgan Provides Color on Medtronic

JP Morgan provided color on Medtronic (NYSE: MDT). In a research report published today, the rating agency commented on the criticism on the company's Infuse product.

In the report, JP Morgan states, “Last Tuesday (6/28) The Spine Journal released a scathing criticism of Medtronic's Infuse. In an entire issue dedicated to the subject, the editors asserted (1) systematic underreporting of adverse events in the clinical studies supporting Infuse's US approval, (2) faulty trials designs, and (3) widespread financial conflicts of interest among the surgeons who participated in the studies and reported the results. In the wake of these accusations, we surveyed 48 high-volume US spine surgeons to gauge what impact these articles might have on Infuse utilization going forward. The results confirm that Medtronic's biologics franchise is at significant risk, with average utilization among our respondents expected to fall by 26% over the next year.”

At the moment, JP Morgan has a Neutral rating and a price target of $41 placed on the company's stock. On Friday, Medtronic closed the week at $39.12.