Medtronic Faces Criticism of Infuse

Medical technology company Medtronic MDT has seen recent fluctuations in its share price, after a critical report was released in a medical journal. Medtronic produced and funded research on a product called Infuse. Infuse is a genetically engineered protein used to stimulate bone growth between vertebra in patients with spinal injuries. A peer-reviewed medical journal Spine devoted an entire issue to exploring the early development and longer effects of this product. Excerpts from this article highlight conflicts of interest present during early trials. Doctors doing some of this early research were compensated with millions of dollars by Medtronic, and failed to fully report adverse side effects that harmed trial participants. The continuing research on Infuse, and its expanded use in the medical world, has come under increasingly heated criticism since doctors have begun speaking out against the product. Initial recognition of this controversy was covered by the Milwaukee Journal Sentinel. This news has already had a negative impact on Medtronic's stock price, driving down share prices by about one dollar on June 29th. News of the conflict of interest may just be beginning to permeate the Internet. ACTION ITEMS:

Bullish:

• The sheer size of Medtronic probably assures investors that even if the company dropped Infuse and all its related products, they would still have a diverse product portfolio.

Bearish

• The share price may continue to fall as investor confidence wanes in the face of these revelations. Traders and investors may be concerned with the general perception of the company and how it will affect share price.

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