An analyst who attended the Heart Rhythm Society meeting in San Francisco (May 4-7) believes that Medtronic (NYSE: MDT) is likely charging $3,000 more for the Revo SureScan MR Conditional pacemaker than previous pacemakers. Physicians at the conference, however, believe that Medtronic may be making a mistake in pricing the device so high even though it leads the market in this device category, said David Lewis, a Morgan Stanley analyst, in a note to investors Monday.

Medtronic's Revo is the first implanted pacemaker that the U.S. Food and Drug Administration approved for use in the MR environment because it was able to meet certain conditions to ensure safety and effectiveness. It was approved in February. No other company has a similar device out in the market domestically, which gives the Fridley, Minnesota, company the edge.

Medtronic, in turn, has high hopes for the product. In a Feb. 22 earnings call, Bill Hawkins said the following: "We believe this product will help to draw share and alleviate pricing pressure [on pacemakers]. So, I'm fairly bullish that this is going to be a real big opportunity for us."

But Lewis's note said that while most clinicians at the HRS meeting considered Revo the most important product launch for the company, enthusiasm for the product was not consistent. Some felt it was nice to have as opposed to something essential. Lewis concluded that "Medtronic's pricing strategy may be dampening enthusiasm for the product."

However, company executives seemed to be happy with how Revo is performing, although they would not share details to confirm that sales were meeting internal projections. Lewis came away from the HRS meeting with the impression that Medtronic, which makes new innovative medical devices, has no plans to alter Revo's pricing strategy currently.

All eyes will likely be on Medtronic at the end of May when the company reports its results for fiscal first-quarter 2012.