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About Medtronic, Inc.

A leading maker of implantable biomedical devices, Medtronic makes defibrillators and pacemakers that issue electrical impulses or shocks to keep hearts beating normally. Its Cardiac and Vascular Group also produces catheters, stents, valves, balloons, and surgical ablation technologies used to treat vascular and heart disease. The company's Restorative Therapies Group makes nerve and brain stimulation devices, implantable drug delivery systems, products used to manage diabetes, and surgical devices for ear, nose, and throat (ENT) and spinal conditions. Headquartered in Dublin, Ireland, for tax purposes, the US is Medtronic's primary market which it serves from offices in Minnesota.


Medtronic divides its business into four segments that develop, manufacture, distribute, and sell device-based medical therapies and services.

The Cardiac and Vascular segment generates around half of Medtronic's sales and comprises the three primary divisions, Cardiac Rhythm & Heart Failure Disease Management (CRHF), Coronary & Structural Heart Disease (CSH), and Aortic & Peripheral Vascular Disease Management (APVD). CRHF makes pacemakers, defibrillators, heart monitors, and other products used keep the heart beating properly. The segment also includes minimally invasive technologies to prevent reclogging of arteries and aortic heart valves such as drug-eluting stents, as well as stants, grafts, and balloon systems for non-heart procedures.

Medtronic's Minimally Invasive Therapies Group segment brings in 30% of sales and develops and commercializes minimally invasive treatments for respiratory, gastrointestinal, and renal fields, in addition to areas typically addressed by surgeons. 

The Restorative Therapies segment houses Medtronic's Spine unit (including the Sofamor Danek business) which manufactures spinal devices and implants, surgical instruments, and bone grafting tissue. The Neuromodulation division makes electrical stimulation devices and drug-delivery systems for conditions such as chronic pain, tremors, and urinary incontinence. Restorative Therapies generates around 25% of sales.

Accounting for 5% of sales, Medtronic's Diabetes segment develops and commercializes diabetes treatments such as insulin pump therapy, continuous glucose monitoring, and related software.

Geographic Reach

Medtronic markets its products in more than 150 countries around the globe. It generates more than half its revenue in the Americas, particularly the US; its other three largest markets are the China, Western Europe, and Japan.

The company is officially headquartered in Dublin, Ireland, for tax reasons, although practically it is a Minnesota company. In addition to around 10 sales and administrative offices, Medtronic has 170 other manufacturing or research facilities in 70 states/countries including Connecticut, Minnesota, California, Arizona, Colorado, China, Puerto Rico, Mexico, Italy, Ireland, Dominican Republic, and Switzerland.

Sales and Marketing

Medtronic sells through direct representatives in the US, while using a combination of independent distributors and direct marketing methods in overseas markets. Its products are used mainly in hospitals, surgical centers, and alternate care facilities like home care and long-term care facilities. Materials managers, GPOs (group purchasing organizations), and integrated delivery managers are Medtronic's principal marketing targets, who it reaches through third-party channels and some direct sales teams.

Financial Performance

Medtronic's sales have increased in each of the last five years, including 2016 when the Covidien merger added roughly $8 billion to sales. Profit growth has been less predictable, varying between $2.6 billion and $4.0 billion over the same period.

In fiscal 2018 the company grew its sales less than 1% to $30.0 billion as growth in the Cardiac & Vascular, Restorative Therapies, and Diabetes segments was partially offset by divestitures in Medtronic's US Minimally Invasive Therapies unit. It sold its Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses three months into the financial year.

Net income fell by just under $1 billion, or 25%, to $3.1 billion. While operating profits were strongly up thanks to higher revenue and gains on disposals worth $697 million, a $2 billion increase in income taxes dragged down profits. The 2017 US Tax Cuts and Jobs Act changed the rules around accumulated foreign earnings and deferred tax assets and amounted to a one-off $2.4 billion tax payment.

Medtronic's cash position fell by $1.3 billion during 2018, ending the year at $3.7 billion. The company used cash from operations and proceeds from the divestitures to pay down large chunks of long-term debt, repurchase shares, and increase the dividend. It reduced its current debt from $7.5 billion to $2.1 billion.



Strategically, Medtronic maintains a steady stream of new product introductions through a mixture of internal research and development and acquisitions to fuel its growth. It spends around $2 billion each year on R&D with the goal of producing new technologies that enhance existing products or fulfill unmet medical needs. Recent successes have included the Solitaire revascularization therapy to treat stroke patients, the Reveal LINQ insertable cardiac monitor, and the Micra pacemaker, allegedly the world's smallest such device.

Medtronic works in the very high-risk fields of hearts, the circulatory system, and spinal columns, and device malfunctions can have serious consequences for patients. The company has a long history of lawsuits, racking up $3.2 billion in legal charges since 2008. Most recently, the company is facing claims that its Infuse Bone Graft product has caused debilitation and permanent injuries. 

The company is also growing its presence in emerging markets, where it grew 13% on a like-for-like basis in 2018 to 15% of overall sales. 


Mergers and Acquisitions

In early 2019 Medtronic agreed to buy EPIX Therapeutics, which makes the DiamondTemp cardiac ablation system that has been approved in Europe. It plans to use the acquisition to build up its portfolio of devices that treat heart arrhythmias.

In late 2018 Medtronic acquired the 89% of Israel-based spinal surgery specialist Mazor Robotics it didn't already own. The $1.7 billion deal underscored the group's commitment to move towards the guided, robotic surgical market. Mazor Robotics' Mazor X robotic guidance system provides surgeons with individualized surgical plans and helps them execute procedures.

Also in 2018 Medtronic acquired Nutrino Health, a provider of nutrition-related data services, analytics, and technologies that help patients manage their diabetes through informed dietary choices.

Company Background

Medtronic got its start treating heart disease -- it was a leader in the development of pacemakers in the 1950s -- and a majority of its revenue still comes from sales of products used to treat heart or vascular conditions. However, it has expanded its reach into the rest of the human body, and the rest of the world, by offering products that treat neurological, musculoskeletal, and metabolic conditions as well.

In early 2015 Medtronic paid $43 billion for fellow medical device maker Covidien. In addition to expanding Medtronic's global footprint, the move also let Medtronic easily move its headquarters to Covidien's home in tax-friendly Ireland.

Medtronic, Inc.

Minneapolis, MN 55432-5604
Phone: 1 (763) 514-4000

Firm Stats

Employer Type: Privately Owned
Pres and Svp Spinal and Biologics: Steve L Neve
President, Minimally Invasive Therapies Group, Asia Pacific: Roy Noda
Chairman: Todd Smalley
Employees (This Location): 4,300
Employees (All Locations): 49,000

Major Office Locations

Minneapolis, MN

Other Locations

Little Rock, AR
Tempe, AZ
Emeryville, CA
Goleta, CA
Irvine, CA
Milpitas, CA
Mira Loma, CA
Newark, CA
Northridge, CA
San Diego, CA
Santa Ana, CA
Santa Rosa, CA
Boulder, CO
Parker, CO
North Haven, CT
Washington, DC
Jacksonville, FL
Atlanta, GA
Peachtree City, GA
Clive, IA
Crystal Lake, IL
Lombard, IL
Louisville, KY
Chicopee, MA
Danvers, MA
Beltsville, MD
Grand Rapids, MI
Novi, MI
Holdingford, MN
Minneapolis, MN
Plymouth, MN
Saint Paul, MN
Woodbury, MN
Hazelwood, MO
Olive Branch, MS
Charlotte, NC
Mooresville, NC
Swedesboro, NJ
Albuquerque, NM
Clarence Center, NY
Cleveland, OH
Tulsa, OK
Greenwood, SC
Timmonsville, SC
Memphis, TN
Signal Mountain, TN
Redmond, WA
Singapore, Singapore