Medtronic's
Segment |
Sales (in Millions) |
Increase (Decrease) at Constant Currencies |
---|---|---|
Cardiac rhythm disease management |
$1,243 |
2% |
Spinal |
$842 |
(1%) |
Cardiovascular |
$722 |
21% |
Neuromodulation |
$394 |
8% |
Diabetes |
$311 |
8% |
Surgical technologies |
$239 |
12% |
Physio-control |
$100 |
8% |
Source: Company press release.
Sure, it's never exciting to see the top segment growing by just 2%, but the slow growth is somewhat expected. Strong competition from Boston Scientific
The bigger problem I see involves the slight decline in Medtronic's second-largest segment, spinal products. The company is in a rebuilding phase, hoping that the pipeline can regrow its spinal business in the future. Until then, don't expect much help from this backup growth-driver.
Besides the two stalled-out segments at the top, the rest of Medtronic is looking mighty fine. I mean, who's going to complain about a 21% increase in the cardiovascular division? The segment is flying high thanks to Medtronic's Japanese launch of its drug-eluting stent, Endeavor, which helped bring its worldwide share of the stent market to 20%, from 17% a year ago. That's a nice improvement, although keep in mind that there are only four major drug-eluting stent makers -- Medtronic, Boston Scientific, Abbott Labs
With only one more quarter to go in its fiscal year, Medtronic raised the low end of its guidance, but kept the upper end intact. I bet if the company had a stronger spine, it would have upped both.
Maybe next year, Medtronic.
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