Medtronic pulls heart pump following several recalls
Why it matters: The product, called a ventricular assist device, helps support patients who suffer from heart failure and require a heart transplant. But the decision to pull the device was almost inevitable after Medtronic issued three recalls this year alone.
The big picture: The FDA recommends doctors use Abbott's heart pump instead, although there are not many types of these ventricular assist devices.
- Robbie Marcus, a medical device stock analyst at J.P. Morgan, wrote to investors that Abbott "should capture almost all of [Medtronic's] sales as the only competitor on the market."
- Medtronic sold $141 million worth of its ventricular assist devices in its latest fiscal year and had already been losing sales to Abbott's version, which has shown a lower risk of stroke.