Medtronic CEO Geoff Martha said the company plans to spin off its three main divisions this year, moving away from gas. The Dublin- and Minneapolis-based medical device company, the world’s largest revenue generating medical device company, plans to sell its dialysis business into a new company with DaVita and separate respiratory intervention and patient monitoring companies. announced plans to transform it into a connected care business. .
“That’s a lot. It’s 8% of our revenue and we have some operational issues that need to be worked out,” Martha said at the JPMorgan Health Conference on Monday. “In the short term, from a sale perspective, I don’t rely on others. [is] in progress. ”
Martha said the company plans to invest more money in segments with high-growth and high-earning opportunities. Includes structural heart, neurovascular, cardiac ablation solutions, surgical robotics, and diabetes.
“We continue to evaluate it, and we like how this portfolio has formed,” Martha said. It gives you confidence.”
Medtronic faces a warning letter related to handling recalls of MiniMed 600 series insulin pumps. Martha said the company has met all of the warning letter requirements, but he doesn’t know when the FDA will lift it to get approval for the new MiniMed 780G insulin pump.
“From a long-term perspective, I am excited about our diabetes products in the US,” said Martha, citing segment growth in Europe and market interest in automated insulin delivery.
Martha also said she is thrilled that Medtronic has launched the Hugo Robotic Assisted Surgery System.The system has his CE mark in Europe, but is still an investigational product in the United States.
“I know there is a lot of skepticism because it has taken so long to bring this product to market and other competitors have struggled to come up with competitive systems to compete with the da Vinci. “But we’ve been getting really good feedback and I think we have something to build from here.”
Most of the medical device market is back to normal, except for elective surgeries such as transcatheter aortic valve replacement, percutaneous coronary intervention and spinal cord stimulation, he said.
“Most of them haven’t changed so far, except that my coronary arteries have gotten slightly better over the last few weeks. It’s coming,’ said Martha.
The company is also eyeing China for both the rising number of COVID-19 cases and the country’s shift to a value-based procurement system. From a COVID perspective, Martha said the virus had moved through the company “incredibly fast”, but that the supply chain was still okay.
Commenting on this shift to value-based purchasing, Martha said Medtronic is going through a process with its coronary stents and spine businesses and will do so with half of the company’s revenues by the end of fiscal year 2023, increasing to 80% by fiscal year 2023. He said he expects to reach 2024: “Although our revenue base will be reduced, it will provide us with a new foundation for future growth.”
