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Medtronic
General Company Info
Founded in 1949, Medtronic (NYSE: MDT) is one of the largest medical-device companies. It develops
and manufactures therapeutic medical devices for chronic diseases. Its implantable products include
pacemakers, mechanical heart valves, stents, insulin pumps, and artificial spinal discs. Each year, 5
million patients benefit from Medtronic's technology, used to treat conditions such as diabetes, heart
disease, neurological disorders, and vascular illnesses. The company markets its products to health-care
institutions and physicians in the United States and overseas. Foreign sales account for about 33% of the
company's total sales. Medtronic is a component of the S&P 500.
Headquarters: Minneapolis, MN
Employment: 32,000 people
Sales (Year Ended April 2005): $10.1 Billion
Net Income 2005: $1.8 Billion
Main Segments
Cardiac Rhythm Management (CRM) – develops products that restore and regulate a patient’s heart
rhythm, as well as improve the heart’s pumping function, including pacemakers and defibrillators.
Cardiac Surgery – develops products that are used in both arrested and beating heart bypass surgery,
including a broad line of heart valve products.
Vascular – offers products, such as stents, and therapies that treat a wide range of vascular diseases and
conditions. The business is also developing a drug-eluting stent to prevent restenosis.
Neurological – offers neurostimulation and drug pump and infusion therapies for chronic pain, Parkinson’s
disease and other common movement disorders.
Diabetes – products include internal and external glucose monitors and insulin pumps.
Spinal & Navigation – develops and manufactures products that treat a variety of disorders of the cranium
and spine, including traumatically induced conditions, deformities and tumors.
In the news
January 26, 2006 – Xceed Biotechnology Limited today announced that its subsidiary company,
PolyNovo Biomaterials Pty Ltd has signed a partnering and licensing agreement with Medtronic, Inc. for
the development, supply and commercialization of PolyNovo's NovoSorb(TM) for the prevention and
treatment of cardiac and vascular disease, focusing on next generation stent products. Biodegradable
stents and stent coatings are forecasted by the medical device industry to be the next generation
products that will supersede existing drug eluting stents. The stent market is currently estimated to be
approximately US$4 billion per year and is predicted to grow to US$7 billion per year by 2010.
January 25, 2006 (Dow Jones) – The fact that Boston Scientific prevailed in its bid rather than J&J is
probably better for Medtronic because Boston Scientific doesn't have J&J's deep pockets, nor does it
have the experience in brand building……A market leader in the space, Medtronic now has a larger
competitor. But some industry experts say the fact that the cardiac-pacing business has changed hands
doesn't really change the competitive landscape. There's very little overlap between Boston Scientific and
Guidant’s businesses so "Medtronic faces about the same kind of competition with or without Boston
Scientific for next few years," Gunderson said. Also, with only a few major players in the cardiac-pacing
business, Medtronic standing in the business can't easily be diminished
December 7, 2005 – Medtronic, Inc. today broke ground on the first phase of the company’s new 1.5million-square-foot headquarters campus for its Cardiac Rhythm Management (CRM) business. The
ceremony took place this afternoon on the 85-acre property near Highways 10 and 35W in Mounds View,
Minnesota. When phase one is complete, it will be the largest Medtronic facility in the world and will
anchor an estimated $1.9 billion in new direct and indirect economic activity in Minnesota over the next
seven years.
Top Competitors
Boston Scientific – makes medical supplies used in minimally invasive surgical procedures, including
cardiology and vascular surgery.
Guidant – a leading maker of implantable biomedical devices, including defibrillators and pacemakers
St. Jude Medical – develops and markets devices to treat cardiovascular disease and is one of the
world's leading manufacturers of mechanical heart valves
Sources: Company website, Hoovers.com, Morningstar.com and Yahoo! Finance.