Abbott Laboratories (ABT) - Get Abbott Laboratories Report shares closed trading up 1.84% to $50.26 on Monday after the company announced that its HeartMate 3 heart failure treatment device received regulatory approval from the Food and Drug Administration.
More than 5.7 million Americans suffer from heart failure and nearly 915,000 more are diagnosed with the disease annually, the company reported.
"Heart failure is a crippling and costly disease and the HeartMate 3 system is a big stride forward in giving patients the opportunity to return to better quality lives," the company said in a statement.
In a note on Monday, Wells Fargo Securities LLC analyst Larry Biegelsen said that with the smaller size of HeartMate 3 compared to HeartMate 2 and the lower rate of pump thrombosis versus HeartMate 2 and Medtronic plc's (MDT) - Get Medtronic Plc (MDT) Report HVAD, "we expect HM3 to provide a boost to the overall LVAD (left ventricular assist device) market and to help ABT capture share."
"The share capture should be partly offset by the pending MDT HVAD destination therapy (DT) indication, which we also expect this year in the US," Biegelsen added.
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