25 things to know about Medtronic

Mary Rechtoris -   Print  |
  • Small
  • Medium
  • Large

Medtronic is the world's third largest medical device company specializing in technology, services and solutions.

Here are 25 things to know about Medtronic:


1. The company has more than 85,000 employees and 53,000 patents in more than 160 countries.


2. Medtronic has its principal executive offices located in Ireland with its operational headquarters based in Minneapolis.


3. Medtronic is presently the world leader in spinal and musculoskeletal therapies. The company's second largest business is spinal and biologics.


4. Medtronic was ranked 14th among large companies on Computerworld's "Best Places to Work in IT" in 2015.





5. Medtronic had a total revenue of $20.2 billion in the 2015 fiscal year, up 19 percent.


6. GAAP earnings were $1.7 billion, an increase of 16 percent in 2015.


7. In the fiscal year 2015, diluted earnings per share were up 6 percent to $4.28. Net earnings were $2.6 billion, down 13 percent from 2014.


8. In the last quarter, Medtronic had earnings of $2.3 billion in cardiac and vascular products; $1.7 billion in restorative therapy products; $449 million in diabetes products; and $2.4 billion in Covidien products.


9. In the United States, Medtronic had a quarterly revenue total of $3.8 billion in the current 2015 fiscal year. In the 2014 fiscal year, Medtronic reported total revenue of $14.4 billion in the United States.


10. In 2015, Medtronic's market cap was approximately $100 billion after its acquisition of Covidien. Medtronic purchased Covidien for $49.9 billion as one of the largest transactions among device companies last year.


11. The company's quarterly dividend presently is 38 cents per share, totaling to $1.52 per share. Medtronic's dividend yield is 1.98 percent.

12. Medtronic's current dividend per share has more than tripled over the last eight years and has increased at a compounded annual growth rate of 18 percent over the past 38 years.


13. Medtronic reported its spine revenue decreased by 2 percent to $743 million as reported in its fourth quarter and fiscal year 2015 financial results.





14. On January 26, 2015 Medtronic announced its completion of the acquisition of Covidien valued at approximately $49.9 billion in a cash-and-stock transaction. Omar Ishark, chairman and CEO of Medtronic, stated the partnership will "expand access and improve clinical outcomes, while lowering costs."


15. After Medtronic acquired Covidien, each ordinary share of Covidien outstanding of the closing has been converted into the right to receive $35.19 in cash and 0.958 of an ordinary share of Medtronic. The newly-merged company is now called Medtronic Plc and headquarters are relocating from the United States to Ireland, where Covidien is based.


16. Medtronic acquired Aptus Endosystems on June 19, 2015 for approximately $100 million. Aptus Endosystems' Heli-FX and Heli-FX Thoracic EndoAnchor systems add to Medtronic's complex aortic disease line, which has the goal of treating the entire aorta.


17. Medtronic is facing a lawsuit for its InFuse Bone Graft, which a patient alleges caused systemic tumors in the heart and spine after undergoing a posterior lumbar fusion procedure using the Infuse product 10 years prior. The plaintiff filed a product liability and negligence lawsuit in April 2015 claiming Medtronic did not include sufficient warning about known or potential harm caused by the product. Medtronic agreed to pay 950 claimants a total payment of $22 million.


18. The BMP revenue rapidly decreased from $119 million during the second quarter in 2013 to $96 million in the second quarter of 2014. However, revenue in the United States from the BMP has increased $2 million from the second to third quarter during the fiscal year 2014.


19. On April 22, 2015 Medtronic announced Europe granted approval for the first and only full-body MR Conditional Deep Brain Stimulation System. The approval applies to any patient receiving a new system and to approximately 13,000 people in Europe presently receiving Medtronic DBC Therapy.


20. Medtronic is seeking acquisitions in China's orthopedic market to sell spinal implants, surgical tools and other devices at a lower cost than the premium lines. While Medtronic officials have not commented on any promising acquisitions, CEO Omar Ishrak has reported Medtronic is targeting communities outside of China's urban areas.


21. In May 2015, Medtronic received FDA 510(k) clearance for the ZEVO Anterior Cervical Plate System, which is able to treat cervical degenerative disease, trauma, tumors, deformity, pseudoarthrosis and/or ailed previous fusions. The device enables surgeons to secure the plate as far away from the adjacent disc as possible.



Company Executives


22. Omar Ishrak, chairman and CEO, was ranked among the most well-liked CEOs in the United States. He was ranked 24th on Glassdoor's study of executives based on employee approval. Of the employees who reviewed the company, 91 percent approved of his leadership performance.


23. Medtronic commands 35 percent of the spine market, though it has declined from 40 percent in 2008. This decline is primarily due to competition in the marketplace and a "change of tide" in InFuse use after a series of negative articles was published in The Spine Journal.


24. Earl Bakken and his brother-in-law Palmer Hermundslie founded Medtronic in 1949 in northeast Minneapolis. Medtronic began expanding in the 1950s with the development of custom devices including the implantable pacemaker in 1960.


25. Medtronic has spent more than $2 billion on research and development and approximately $80 million on charitable contributions for the 2014 fiscal year.

Copyright © 2021 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

Featured Webinars

Featured Whitepapers

Featured Podcast