QUOTE AND NEWS
TheStreet.com  Jun 21  Comment 
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. Here's what Jim Cramer had to say about some of the stocks during the Mad Money Lightning Round Monday evening: Micron Technology : "I...
Benzinga  Jun 20  Comment 
Medtronic PLC (NYSE: MDT) reported mixed results for 4Q16, while issuing new guidance for FY17. Argus’ David Toung maintained a Hold rating on the company. Toung believes the stock valuation fully reflects Medtronic’s growth outlook...
Forbes  Jun 16  Comment 
At the forefront of the development of a hybrid closed loop system for controlling type-1 diabetes is Medtronic , which is likely to launch the product by as soon as 2017. As compared to a conventional insulin pump, the hybrid closed loop, which...
Benzinga  Jun 14  Comment 
Following Monday’s biennial analyst meeting, SunTrust raised its price target on Medtronic plc (NYSE: MDT) to $98 from $93. Indicating a bullish outlook on their diabetes segment, the analysts believe it's possible for management to hit...
Forbes  Jun 13  Comment 
This week Medtronic announced that it expects to see material revenue from surgical robots in FY 2019. In this analysis, we discuss the factors which will determine how big a player can Medtronic be in this relatively new area. Consider the...
Wall Street Journal  Jun 9  Comment 
The U.S. Tax Court handed Medtronic a victory in a $1.4 billion dispute with the Internal Revenue Service over how much of the medical-device maker’s profits should be taxed by Puerto Rico and how much should face higher federal taxes instead.
Benzinga  Jun 7  Comment 
Canaccord Genuity said Intuitive Surgical, Inc. (NASDAQ: ISRG) has ample runway for growth despite Medtronic PLC (NYSE: MDT)'s push on robotic surgery. The brokerage reiterated its Buy rating and $700 price target on the ISRG shares following...
Benzinga  Jun 7  Comment 
Medtronic PLC (NYSE: MDT) provided further details regarding its revenue and EPS growth plan, which BTIG’s Sean Lavin views as achievable. Lavin maintains a Neutral rating on the company. Medtronic’s Goals “While we hope MDT hits these...
Forbes  Jun 2  Comment 
Looking at the sectors faring best as of midday Thursday, shares of Healthcare companies are outperforming other sectors, up 0.9%. Within that group, Endo International plc (NASD: ENDP) and Medtronic PLC (NYSE: MDT) are two large stocks leading...
Benzinga  May 31  Comment 
Some of the stocks that may grab investor focus today are: Wall Street expects Ascena Retail Group Inc (NASDAQ: ASNA) to post its quarterly earnings at $0.13 per share on revenue of $1.73 billion. Ascena Retail shares rose 0.99 percent to close...




 

Medtronic (NYSE:MDT) is the world's largest medical device company. MDT is best known for its pacemakers but also produces a wide range of other medical devices, including external defibrillators, insulin pumps and image guided surgery systems.

Business Overview

Business & Financial Metrics[1]

In 2010, MDT generated a net income of $3.10 billion on revenues of $15.81 billion. This represents a 49.7% increase in net income on a 8.4% increase in revenues from 2009, when the compoany earned $2.07 billion on revenues of $14.60 billion.

Business Segments[2]

MDT operates in seven main divisions that are aggregated into a single operating segment:[2]

  • Cardiac Rhythm Disease Management: MDT is the world’s leading supplier of pacemakers.[3]
  • Spinal: spinal products and image guided surgery systems that are used by surgeons during precision cranial and orthopedic surgeries. [4]
  • CardioVascular: products and therapies such as stents which are to treat coronary artery disease, aneurysms, and peripheral vascular disease. [5]
  • Neuromodulation: devices for the treatment of neurological, urological, and gastrointestinal disorders. One of the main devices is a neurostimulation system, which is about the size of a stopwatch and can be implanted under the skin to deliver electrical pulses to the spinal cord. [6]
  • Diabetes: devices such as external insulin pumps and glucose monitoring (CGM) systems for maintaining control of glucose levels and supporting the treatment of diabetes. [7]
  • Surgical Technologies: products used for procedures such as heart valve repair and replacement. These include perfusion systems, which oxygenate and circulate a patient’s blood during heart surgery, and products used for the repair and replacement of heart valves, etc.[8]
  • Physio-Control: products such as external defibrillators which are used on victims of cardiac arrest. [9]

Key Trends and Forces

Medicare coverage patterns

Health coverage is an important determining factor when patients and doctors choose among various treatment options. Medicare coverage is particularly significant in that it directly affects over forty million Americans, how much patients have to pay for Medtronic products, and how much Medtronic will receive in payments from Medicare. Currently, Medicare and other third party payors are emphasizing more cost-effective medical devices, by limiting the reimbursement they will cover. Furthermore, even if a new medical device is cleared by the FDA, Medtronic faces limited demand for the device until Medicare and other payors approve the device for reimbursement.

Government Regulation

Medtronic and its competitors are all heavily affected by government regulation, especially by the FDA, which is responsible for regulating food, dietary supplements, drugs, medical devices, and other products in the United States. Without FDA approval, Medtronic cannot sell any of its medical devices to the public. If any of Medtronic's devices fail FDA approval, it can adversely affect the company's sales.

Diabetes

Diabetes currently affects around 200 million people worldwide, including 21 million people in the U.S. It is estimated that more than $132 billion is spent annually on diabetes and its complications. One of the key risk factors for diabetes is obesity, which has been on the rise in the United States. MDT currently has several products that serve the diabetic market, and it represents an opportunity for MDT to generate additional revenue in this large and expanding market.

Saturation of Implantable Cardiac Rhythm Devices (ICD) Market

ICDs are stopwatch-sized devices that monitor the heart and deliver appropriate therapy when an abnormal heart rhythm is detected. Medtronic holds over 50% market share for ICDs and this product contribute about 25% of Medtronic's sales. ICDs usage has grown substantially over the years, due to trial results which showed ICDs reduced death by 23% in people with moderate heart failure compared to those who did not receive ICDs. [10] However, growth in this market has been declining recently as the patient population which ICDs serve is substantially penetrated. If MDT can't sell as many ICDs as it has in the past, its sales may be adversely affected.

Competition

MDT faces strong competition in nearly every segment that it operates in. Primary competitors in their various business lines include:

References

  1. MDT 2009 10-K pg. 85  
  2. 2.0 2.1 MDT 2009 10-K pg. 1  
  3. MDT 2007 10k, Pg 2
  4. MDT 2007 10k, Pg 5
  5. MDT 2007 10k, Pg 9
  6. MDT 2007 10k, Pg 13
  7. MDT 2007 10k, Pg 15
  8. MDT 2007 10k, Pg 16
  9. MDT 2007 10k, Pg 20
  10. MDT 2007 10k, Pg 4
  11. MDT 2007 10k, Pg 2
  12. MDT 2007 10k, Pg 5
  13. MDT 2007 10k, Pg 9
  14. MDT 2007 10k, Pg 13
  15. MDT 2007 10k, Pg 15
  16. MDT 2007 10k, Pg 16
  17. MDT 2007 10k, Pg 18
  18. MDT 2007 10k, Pg 20
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