Late yesterday, Medtronic reported that a Food and Drug Administration (FDA) advisory panel unanimously recommended that the agency approve MDT's Endeavor drug-coated stent for use in patients with coronary artery disease. The FDA generally follows such recommendations, though it's not obliged to. If the Endeavor is approved, Medtronic will join Johnson & Johnson (JNJ) and Boston Scientific (BSX) as the only domestic producers of drug-coated stents though, hopefully, it will not join them in the courtroom for any heated patent disputes.
Medtronic is up about 0.7% in early trading. The shares have trended steadily higher since April, boosted by support from their 10-week and 20-week moving averages.
Despite the uptrend, option traders are heavily pessimistic toward the shares. MDT's Schaeffer's put/call open interest ratio is 0.83, higher than 98% of other such readings taken during the past year. Conversely, analysts are in the bulls' camp. Zacks reports that analysts have awarded the shares 10 strong buys and 4 buys, compared to just 5 holds and 2 sells.