QUOTE AND NEWS
Jutia Group  Oct 14  Comment 
[Thomson Reuters ONE] - CapSureFix Novus(TM) MRI SureScan ® 5076 Pacing Lead Approved for MR-Conditional Use in Patients with Slow Heartbeat MINNEAPOLIS - October 14, 2014 -- Medtronic today announced the U.S. Food and Drug Administration ......
Benzinga  Oct 14  Comment 
Medtronic today announced the U.S. Food and Drug Administration (FDA) approval of its CapSureFix Novus(TM) MRI SureScan® 5076 Lead for use with magnetic resonance imaging (MRI). The lead is approved for MRI scans positioned on any region of...
Benzinga  Oct 14  Comment 
Medtronic, Inc. (NYSE: MDT) today announced that the first patients have been enrolled in an investigational device exemption (IDE) study of its breakthrough Predictive Low Glucose Management (PLGM) technology, marking a critical step toward...
Motley Fool  Oct 13  Comment 
This 2% payout is likely to keep growing.
Reuters  Oct 13  Comment 
U.S. medical equipment maker Medtronic has asked European Union antitrust regulators to approve its proposed $43 billion purchase of Irish peer Covidien Plc, the European...
Jutia Group  Oct 13  Comment 
[Reuters - UK Focus] - U.S. medical equipment maker Medtronic has asked European Union antitrust regulators to approve its proposed $43 billion purchase of Irish peer Covidien Plc, the European Commission said on Monday. The ... Read more on this....
StreetInsider.com  Oct 13  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Medtronic+%28MDT%29+Reports+Positive+Data+from+CoreValve+ADVANCE+DA+Study/9905193.html for the full story.
TheStreet.com  Oct 10  Comment 
NEW YORK (TheStreet) -- Medtronic shares are up 1.5% to $64.62 on Friday after the medical device company detailed its future management structure following the closing of its pendingaacquisition ofaCovidien . Current chairman and CEOaOmar...
newratings.com  Oct 10  Comment 
FRIDLEY (dpa-AFX) - Medical device maker Medtronic, Inc. (MDT) said Friday that Omar Ishrak will remain as chairman and chief executive officer of the new company, Medtronic plc, following the close of its proposed acquisition of smaller rival...
StreetInsider.com  Oct 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Medtronic+%28MDT%29+Announces+Leadership+Structure+Following+Close+of+Covidien+Deal/9901944.html for the full story.




 

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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