FDA greenlights Medtronic’s dual-energy ablation—could this be the future of AFib treatment?

Medtronic has achieved a major milestone with the U.S. Food and Drug Administration (FDA) granting approval for its Affera Mapping and Ablation System, including the Sphere-9 catheter. This approval, announced on 24 October 2024, positions Medtronic as the first and only company to offer dual-energy pulsed field ablation (PFA) and radiofrequency (RF) technologies for atrial fibrillation (AFib) treatment in the U.S. The Affera system is designed to treat persistent AFib and cavotricuspid isthmus (CTI) dependent atrial flutter, conditions affecting millions worldwide.

A Paradigm Shift in AFib Treatment

The Affera system is a comprehensive solution that integrates high-density (HD) mapping with flexible ablation options. The Sphere-9 catheter, a key component of this system, features a 9mm lattice tip and is compatible with an 8.5Fr sheath, allowing for greater precision during procedures. Medtronic highlights that the technology not only increases the safety and efficacy of procedures but also optimises workflow by enabling single-procedure treatments without requiring fluoroscopy.

Medtronic acquired Affera in 2022 for approximately $1 billion, intending to expand its cardiovascular solutions and strengthen its market position. The approval follows the pivotal SPHERE Per-AF study, which demonstrated the safety and efficacy of the Affera system compared to Johnson & Johnson‘s Thermocool SmartTouch SF catheter. This pivotal trial was crucial in securing FDA clearance, reflecting Medtronic’s commitment to innovation and patient care.

Competing in the Ablation Space

Medtronic’s achievement places it ahead of competitors like Boston Scientific, which received FDA approval for its Farapulse system in early 2024. With the addition of Affera, Medtronic’s product portfolio now includes two distinct PFA technologies: the PulseSelect and the newly approved Sphere-9 catheter. This diversification enhances the company’s ability to provide tailored cardiac solutions, aligning with increasing global demand for minimally invasive treatments.

Medtronic’s Market Performance and Future Outlook

The approval has positively impacted Medtronic’s stock (NYSE: MDT). At the time of the announcement, Medtronic’s shares traded at approximately $90.99, with analysts forecasting a 12-month price target averaging around $95.36, suggesting a 3-4% upside. Analysts maintain a “Hold” consensus, reflecting cautious optimism despite the company’s recent advancements. The addition of Affera to Medtronic’s lineup is expected to drive revenue growth, as the company capitalises on its expanded market reach and cutting-edge cardiovascular offerings.

Industry Experts on Medtronic’s FDA Approval

Rebecca Seidel, president of Medtronic’s Cardiac Ablation Solutions, stated that the approval is a testament to the company’s mission of addressing patient needs through innovation. She emphasised that the Affera system represents a significant advancement in electrophysiology, improving safety and efficiency in AFib treatment. Doron Harlev, Affera’s founder and now vice president of engineering at Medtronic, echoed these sentiments, noting that the technology’s dual-energy capability offers unmatched flexibility for physicians, enhancing procedural outcomes.

What This Means for Investors

Medtronic’s position as a leader in medical technology is strengthened with this FDA approval. Its diverse portfolio and continued innovation are likely to sustain its market performance. Investors eyeing Medtronic should consider its strategic acquisitions, consistent dividend growth, and the expanding demand for its cardiovascular solutions as key factors driving its valuation. Analysts forecast moderate growth, with some advising caution due to broader market dynamics.