Where Medtronic is headed: 5 quotes from the Q3 conference call

Written by Laura Dyrda | February 26, 2018 | Print  |

Here are five quotes from Medtronic's third quarter 2018 earnings call, based on a transcript from Seeking Alpha.

During the call, CEO Omar Ishrak and Executive Vice President and CFO Karen Parkhill discussed value-based payment, acquisitions, tax reform and robotics.

 

Omar Ishrak: "Across Medtronic, we remain focused on leading the ship to healthcare payment systems that reward value and improve patient outcomes of our volume. We are increasingly partnering with additional stakeholders and the healthcare value chain, including payers, providers and other interested organizations to lead the change for FIFA service models to value-based programs."

 

Karen Parkhill: "The tax will be paid over the next eight years with less of a cash impact in the first five years. Medtronic has been advocating for U.S. tax reform for many years and we are pleased with the final package including the ability to gain access to our future earnings outside the United States."

 

OI: "We do acquisitions when we meet certain guidelines; that means where we think that the acquisition will add to our strategies which are very clear in the disease areas that we have got, especially tuck-in acquisitions in the disease areas that we have got presence in and it fills out our overall capabilities. We have got to have the management bandwith and financial bandwith to do the deal and it is an interesting acquisition; we haven't been shy from doing some reasonably big ones in the past two years."

 

OI: "There is another point of pricing pressure in [spine] and with hospitals consolidating, getting more sophisticated in their buying patterns and they are tendering and consolidating their vendor base; for us, it's the tale of two cities: one given our product preps and implants plus our enabling technology we end up usually a net benefactor when you consolidate vendors, but it is resulting in some price declines."

 

OI: "We haven't seen the benefit of it yet; we will see it in the coming quarters. There are two tangible ways that pull through revenue; one is when we have placed a few sorts of equipment and that accounts in return for incremental spine shares. So in the last two quarters, we have started doing that with Mazor and that it lags maybe six months before those contracts take effect and we actually see that incremental revenue."

 

More articles on spine surgery:
Who's leading the global spine surgery device market?
16 spine devices receive FDA 510(k) clearance in January
Spine Wave expands cervical spine system implants: 5 things to know

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