Why Medtronic Stock Dropped Today

Shares of Medtronic (NYSE: MDT) fell 3.1% on Thursday, according to data provided by S&P Global Market Intelligence, giving back yesterday's post-earnings gains after it announced advisors to the U.S. Food and Drug Administration (FDA) had a mixed reaction to its investigational renal denervation system, Symplicity Spyral.

In a press release yesterday, Medtronic announced the U.S. FDA's Circulatory System Devices Panel (CSDP) committee voted unanimously (13-0) on the device's safety and narrowly voted in favor (7-6) of the effectiveness of the Symplicity blood pressure procedure. At the same time, however, the committee also narrowly voted against the benefit/risk profile of the device (6-7).

Multiple analyst firms weighed in today following the FDA's seemingly lukewarm votes: Needham analysts argued that the FDA is unlikely to approve the device given the votes, while Raymond James analysts suggested Medtronic "will ultimately get FDA approval for the device, although the label may be narrower than anticipated."

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Source Fool.com