Medtronic announced on February 20,Will exit the ventilator market,And transform its remaining patient monitoring and respiratory businesses into a new division,Overturned the announcement made more than a year ago to split these businesses.Plan.

Chief Executive Officer Geoff MarthaEarnings CallMedtronic told investors that shutting down the ventilator business ultimately serves the company's best interests, and the saved funds will boost investment in new divisions, particularly in remote patient monitoring.

“Last year, the business became increasingly unprofitable."Growth is slowing further, and the dynamics in this area are changing, shifting towards ventilators with lower acuity. We expect unique and valuable contributions to be more reflected in higher acuity, hospital-based products," he said.

Martha said that this decision was "difficult", and specifically pointed out how the company "significantly" increased production during the COVID-19 pandemic, as cases continued to rise around the world, leading to a shortage of ventilators.

Despite the tough decision,Medtronic still believes that the spin-off strategy no longer benefits the company.

Medtronic announced in October 2022 that it would spin off its Patient Monitoring and Respiratory Interventions (PMRI) business. At that time,This move appears to be another healthcare company spinning off or selling.Low-growth businesses to focus on other areas deemed more profitable. According to Reuters, medical technology giants such as GE Healthcare and ICU Medical are also considered potential buyers.

On the contrary, Medtronic will now exit the ventilator market and merge the remaining PMRI business into a division named"Acute Care and Monitoring"The new department,The department will include pulse oximeters, remote patient monitoring, airway management, and respiratory monitoring products.Martha said that changes within Medtronic and in the market during the spin-off process influenced the company to change its direction.

According to a report by GlobalData, Medtronic is the market leader in ventilator devices in the United States and Europe, with market shares of 42.5% and 18.4% in these two regions, respectively.

"Our competitive position has improved, particularly in our surveillance business, which saw changes last year. As we focus on processes, we continue to operate and perform well. The competitive dynamics have shifted significantly compared to our main rival, Masimo, which is positive for us," he said. "We believe that by increasing investment, we can ensure the changes are lasting."

The CEO also emphasized the importance and value of data as part of the decision to retain the patient monitoring products.

JPMorgan Chase analysts wrote in a report to investors,They expect the new division "to achieve higher revenue growth after the ventilator business winds down, although it will remain relatively small compared to the overall company."

According to the company's earnings report, MedtronicIt is expected that,Due to this decision, the non-GAAP expenses for its fourth fiscal quarter are expected to be between $350 million and $425 million.

Medtronic did not disclose more details to explain why it is shutting down its ventilator production line, nor did it explain why its market position has become financially unsustainable. It’s no secret that sales of the company’s ventilators have slowed since demand surged during the Covid-19 pandemic.

Bob White

At the same time,Medtronic Executive Vice President and President of the Medical Surgical Portfolio Bob White to Depart Company Amid Restructuring

MedtronicForceCEO Jeff MarshaAt the end of the earnings callAt the same timeAnnouncementFinishedExecutive Vice President of the CompanyWhite to Step Down.

In a statement shared by the media spokesperson, the company listed some of the many achievements Whitaker accomplished during his 14-year tenure:

· Following the $50 billion merger in 2015, he successfully led the integration of Medtronic and Covidien in the Asia-Pacific region, uniting more than 5,000 employees into one team.

· He continued to lead the minimally invasive therapy group during the COVID-19 pandemic and has recently led the medical surgical portfolio.

Medtronic stated: "We thank Bob for his dedication to Medtronic and our mission, and look forward to seeing his continued impact on the entire industry."

Coincidentally, on January 25, 2024, Philips also issued an official announcement stating that it would adjust the product structure of its sleep and respiratory business lines in the U.S. In the announcement, Philips stated that it would cease sales of key products in its respiratory business line in the U.S., including medical ventilators and home ventilators. As many as 19 products will be discontinued starting from January 25, 2024.

The Philips respirator recall incident, which had been continuously fermenting for three and a half years, ultimately ended with the withdrawal of multiple products from the market.

丨LivaNova

On January 12, global ECMO leader LivaNova PLC announced that, in order to further concentrate resources and strengthen its core Cardiopulmonary (CP) and Neuromodulation businesses, the company has decided to orderly scale down its Advanced Circulatory Support (ACS) business unit. In the first nine months of 2023, the ACS business contributed approximately 4% of the company's net revenue. The complete shutdown of this business is expected to be finalized by the end of 2024.

丨Stryker

In August 2023, in its financial report, Stryker revealed that it is exiting the spinal business in China due to losing the bid in the spinal collection procurement. Specifically, the company failed in the volume-based procurement project for spinal products in the third quarter of 2022, leading to its withdrawal from the spinal business in China.

It was observed that in the spinal national procurement conducted in September 2022, both Jiemei and Stryker did not appear on the winning bid list. Compared to joint, trauma, and limb revenues, Stryker's spinal revenue accounts for a relatively smaller proportion. Jiemei also holds a relatively small share in China's spinal market.

丨Zimmer Biomet

In March 2023, ZimVie, the original business unit of Zimmer Biomet, announced that it plans to fully withdraw its spinal business from the Chinese market due to the impact of the national spinal procurement policy.

丨Siemens

On May 10, 2023, Siemens Healthineers announced plans to discontinue the CorPath GRX (Tuling) interventional surgical robot business in the cardiac coronary field.

Upon the release of the news, the industry was astonished. According to statistics, the vascular interventional surgical robot sector is still in its early stages of development, with Siemens Healthineers being one of the representative companies. Moreover, CorPath GRX is currently the world's only vascular interventional surgical robot system certified by both the FDA and CE, and also a leader in the commercialization within this field.

丨Johnson & Johnson

In October 2023, according to foreign media reports, during the third-quarter investor conference, Johnson & Johnson also stated that its medical technology division is restructuring the DePuy Synthes orthopedics business. This two-year restructuring plan will lead to the orthopedic division withdrawing from "lower-profit markets and product lines," aiming to streamline and focus on the orthopedic business to enhance the division’s profitability. The restructuring is expected to be completed by the end of 2025, with costs reaching $700 million to $800 million.

Medtronic, plc. as ofQuarterly Sales Were $8.1 Billion for the Quarter Ended January 26, 2024, with a profit of $1.3 billion, or 99 cents per share.Net profit increased by 8.8% and revenue grew by 4.7% compared to the third quarter of 2023.

Excluding one-time items, Medtronic's earnings per share were $1.30. This result was 4 cents higher than the Wall Street analyst consensus, which expected earnings per share of $1.26 and revenue of $7.95 billion.

Among them,Medtronic's diabetes portfolio is in a leading position, increasing by 12.3% year-over-year to reach $640 million.Nearly a year after resolving the FDA warning letter and receiving FDA approval for its MiniMed 780G insulin pump with the Guardian 4 sensor, the portfolio continues to rebound. The Cardiovascular portfolio grew by 6.4% to reach $2.9 billion; the Neuroscience portfolio increased by 4.8% to reach $2.4 billion; and the Medical Surgical portfolio rose by 3.9% to reach $2.1 billion.

The company's achievements in recent months include:

• First Commercial Use of Symplicity Spyral Renal Denervation (RDN) System for Treating Hypertension in the U.S.;

• 
  

  FDA Approves Medtronic PulseSelect Pulsed Field Ablation (PFA) System;

• Next-Generation Micra AV2 and Micra VR2 Leadless Pacemakers Receive CE Mark Approval;

• Mini Percept RC Neurostimulator Receives FDA Approval and CE Mark;

• 
  

  MiniMed 780G with Simplera Sync disposable all-in-one CGM receives CE mark, planned for a limited release in Europe in spring and a phased commercial launch across Europe in summer.

Martha also stated,Aurora EV-ICD MRI SureScan Extravascular Defibrillator Has Begun Limited Market ReleaseFDA Approved in October 2023The product.He mentioned that he expects this new device (which places leads below the sternum and outside the heart and veins) to accelerate the growth of Medtronic's ICD sales.

"We are building momentum and have steadfastly fulfilled our commitments for another quarter. As we expand the use of innovative medical technologies globally, we will continue to achieve sustainable revenue growth, with particular strengths across multiple businesses and international markets," said Martha in the press release. "Our recently approved key products — including transformative offerings in diabetes, cardiac rhythm management, neuromodulation, hypertension, and pulsed field ablation — reinforce our confidence in driving reliable growth over the next several quarters and years."