MDT - Quick Take - SPR Acquisition Strengthens Neuromod Biz and Creates Entrypoint into PNS Market

Research evidence excerpt

MDT - Quick Take - SPR Acquisition Strengthens Neuromod Biz and Creates Entrypoint into PNS Market

Truist Securities

Equity Research Report May 20, 2026

HEALTHCARE: Diversified MedTech Medtronic plc (MDT)

MDT - Quick Take - SPR Acquisition Strengthens Neuromod Biz Richard Newitter

212-319-5883 and Creates Entrypoint into PNS Market

Richard.Newitter@truist.com

Ravi Misra This AM, MDT announced it was purchasing SPR [Private] for ~$650M in a cash

212-590-0973 transaction that is expected to close in 1HFY27. Following Boston Scientific's (BSX, BUY)

Ravi.Misra@truist.com acquisition of Nalu in Oct 2025, today's announcement would represent a second transaction

involving a larger strategic (MDT) purchasing a peripheral nerve stimulation asset. Unlike

Felipe Lamar Nalu (and other PNS platforms), SPR's Sprint is a short term 60-day therapy that does not

212-326-6137 require a permanent implant in the body thus making it a slightly less invasive procedure. In

Felipe.Lamar@truist.com recent months, PNS players have secured positive decisions around reimbursement

coverage from private payers and we think this could support a "category unlock" in

2026+. In March, Aetna amended its policy to treat SPR as "medically necessary" thereby

formalizing coverage in neuropathic pain patients. This builds on favorable decisions for

Current Price (May 19, $78.58 BSX/Nalu from commercial payers in 2025, when it added Aetna (CVS, MacDonald, Buy) 2026)

and CareFirst BCBS [private].

Stock Rating HOLD We believe the PNS market is a ~$200-250M market today (inclusive of BSX, SPR, Unchanged

Curonix [Private] and Bioventus [BVS, Not Rated]) and growing in the high double digits

Price Target $95.00 (20%+). The 50K+ patients treated by SPR would be well above others and is a reflection