Global MedTech Q3 Financial Performance and Innovation Highlights: Johnson & Johnson, Boston Scientific, Philips Lead Growth Amid Strategic Restructuring and Product Launches

Oct 28, 2023 18:37 CST Updated 18:37

Johnson & Johnson

Medical Device R&D and Manufacturer

Danaher

Product Design and Manufacturer

Instrument Family

Pioneer in Medical Device Media Reports

Share Professional Medical Device Knowledge

Source: Medical Device Innovation Network

The year 2023 is approaching its end,Global medical device companies have also been gradually releasing their Q3 financial reports. A comprehensive review of the financial performance reports of major companies shows an overall upward trend.A batch of innovative device products continues to emerge, but with the global pandemic subsiding and the impact of geopolitical factors, some companies have seen a decline in performance and may face challenges in the future.

Abbott Medical's global medical device sales reached $4.2 billion, a year-over-year increase of 14.7%;

Johnson & Johnson's third-quarter sales were $21.351 billion, a year-on-year increase of 6.8%;

Roche Diagnostics' sales in the first nine months increased by 1%, reaching 44.1 billion Swiss francs; excluding COVID-19 business, sales grew by 9%.

Boston Scientific's net sales were $3.527 billion, representing a reported increase of 11.2% compared to the same period last year.

Edward Life Sciences Q3 Sales Increase 12% to $1.48 Billion;

Danaher Reports 11% Drop in Third-Quarter Revenue. Revenue fell to $6.87 billion in the three months ended September 30, down from $7.66 billion a year earlier.

3M Health Care's net sales in the third quarter were $8.3 billion, a decrease of 3.6% compared to the same period last year.

In the medical business field of Canon Group, sales in the European region and the Japanese market have steadily increased. This field's revenue for the quarter rose 5.0% year-on-year to 132.4 billion yen.

Philips announced its latest quarterly report, with group sales increasing by 11% year-on-year to reach 4.5 billion euros.

Medtronic Reports Q1 FY24 Earnings, Raises Full-Year OutlookMedtronic announced its first-quarter earnings for the 2024 fiscal year (FY24) ended July 28, 2023, and raised its full-year guidance. Global revenue for the first quarter of FY24 was $7.7 billion (approximately 56.19 billion RMB), representing a reported growth of 4.5%.

Johnson & Johnson

Just a week ago,Johnson & Johnson Releases Q3 2023 Earnings Report. The report shows that Johnson & Johnson's Q3 sales were $21.351 billion, a year-over-year increase of 6.8%, with a business growth rate of 9.0% excluding the COVID-19 vaccine; net earnings were $4.309 billion.Basically the same as the same period last year.

Among them, the sales of MedTech reached 7.458 billion US dollars, with a global adjusted operating sales growth of 6.0%. This was mainly driven by electrophysiology products in interventional solutions, wound closure products in general surgery, contact lenses in ophthalmology, and biosurgery products in advanced surgery. Global operational sales of MedTech increased by 10.4%, with the acquisition of Abiomed contributing 4.6%. Compared to the same period last year, interventional solutions showed significant growth, while the other three segments also experienced moderate growth.

Specifically,Interventional Solutions Q3 revenue was $1.558 billion, increasing by 47.0%, with January-September 2023 revenue at $4.681 billion; Orthopedics Q3 revenue was $2.164 billion, increasing by 3.4%, with January-September 2023 revenue at $6.674 billion; Surgery Q3 revenue was $2.479 billion, increasing by 2.3%, with January-September 2023 revenue at $7.507 billion; Ophthalmology Q3 revenue was $1.256 billion, increasing by 4.2%, with January-September 2023 revenue at $3.864 billion.

Notably, Johnson & Johnson disclosed the progress of its orthopedics restructuring. Earlier reports suggested that Johnson & Johnson might cut at least 1,000 jobs, with the layoffs focused on the company's medical technology-related departments, including at least the sports medicine and shoulder reconstruction divisions as well as the minimally invasive surgical robotics project.

Johnson & Johnson CFO Joe Wolk recently stated that Johnson & Johnson has taken steps this quarter to improve the future profitability of its Medical Technology (MedTech) sector, implementing a restructuring plan aimed at simplifying and centralizing the operations of its orthopedics business. The restructuring is expected to be completed by the end of 2025, with costs ranging from $700 million to $800 million, but it will enhance the division's ability to meet product demand.

Joe Wolk pointed out that the two-year restructuring plan will allow the company's orthopedics division to exit "lower-margin markets and product lines" to improve the division's profitability, following a 2.6% sales growth reported in the third quarter. Jessica Moore, Vice President of Investor Relations at Johnson & Johnson, stated that considering the exits from certain markets and product lines,In the next two years, DePuy Synthes' total revenue will decrease by approximately $250 million. However, we believe these measures will enhance our ability to meet demand, accelerate growth, and improve profitability. The leader of Johnson & Johnson Medical Technologies will continue to drive innovation and deepen the company’s expertise in the medical field.

Abbott

Abbott announced its financial report for the third quarter of 2023. The report showed that Abbott's global sales in the third quarter of 2023 reached 10.1 billion US dollars. Excluding the impact of COVID-19 testing products on sales, global sales in the third quarter increased by 13.8% year-on-year. All four core business segments achieved double-digit sales growth, and the adjusted diluted earnings per share was 1.14 US dollars.Based on the performance of the first three quarters, after excluding the expected impact of COVID-19 testing-related products, the company forecasts global sales to achieve double-digit growth in 2023 and raises the midpoint guidance of the earnings per share range.

In the third quarter of 2023, Abbott further expanded its commercial footprint.In September, Abbott acquired Bigfoot Biomedical, a leader in the field of intelligent insulin management systems for diabetes, further creating a closed-loop smart management system for diabetes that ranges from continuous glucose monitoring to insulin dosing support.To enable patients to access more personalized and precise diabetes care solutions. During the same period, Abbott further expanded its collaboration with global biotech leader mAbxience to advance the commercialization of certain biosimilars, aiming to broaden their application among populations in emerging markets.

In the third quarter of 2023, Abbott's global medical device sales reached $4.2 billion, a year-on-year increase of 14.7%.Among them, the sales of diabetes, electrophysiology, structural heart disease, and neuromodulation businesses all achieved double-digit growth. Notably, the global sales growth of the electrophysiology business exceeded 20%. Moreover, the global sales of Abbott's FreeStyle Libre system in the diabetes business reached $1.4 billion, representing a year-over-year increase of 28.5%.

In July this year,Aveir™ Single-Chamber Leadless Pacemaker System Receives EU CE Mark for Treating BradycardiaUnlike traditional pacemakers, the leadless cardiac pacemaker does not require a pocket to be created, leaves no incisions or scars on the chest surface, and does not involve the implantation of pacing leads, thus flexibly meeting the treatment needs of patients at different stages.

Abbott said,The revenue from the diagnostic business in the third quarter decreased by 33% year-over-year on a reported basis, due to the expected reduction in COVID-19 testing.Excluding the impact of COVID-19 testing, the company's diagnostic sales increased by 9% on a reported basis.

Roche

On October 19, 2023, Roche released its Q3 2023 performance: Sales growth was 7% at constant exchange rates (CER) in Q3 2023.Sales in the first nine months increased by 1% to 44.1 billion Swiss francs, and excluding the COVID-19 business, sales grew by 9%.

In the first nine months,Revenue in the diagnostics division fell 25% to 10.43 billion Swiss francs ($11.64 billion) from 13.85 billion Swiss francs a year earlier, representing an 18% decline at constant exchange rates.Roche's total revenue for the first nine months fell 6% from CHF 47.04 billion in the same period in 2022 to CHF 44.05 billion (approximately USD 49.15 billion). On a constant currency basis, total revenue for the period increased by 1%. Revenue from its pharmaceuticals division rose 1% from CHF 33.19 billion in the first nine months of 2022 to CHF 33.62 billion.

Within the diagnostics division, Roche's core laboratory business was flat on a reported basis compared to the same period last year, reaching 5.84 billion Swiss francs, compared to 5.83 billion Swiss francs in the same period last year.Revenue from its molecular diagnostics business dropped 40% from 2.74 billion Swiss francs to 1.65 billion Swiss francs, while revenue from pathology laboratories increased 7% from 975 million Swiss francs last year to 1.05 billion Swiss francs. Revenue from diabetes care fell 15% from 1.22 billion Swiss francs to 1.04 billion Swiss francs. Revenue from clinical point-of-care testing plummeted 72% from 3.09 billion Swiss francs to 865 million Swiss francs.

Core laboratory sales were driven by immunoassay and clinical chemistry products, while the decline in the company's molecular diagnostics business was due to an 88% drop in COVID-19-related sales. This was partially offset by a 25% increase in cervical cancer screening revenue and a 14% rise in blood screening sales.

The growth in sales of pathology laboratories was driven by the increase in advanced staining and companion diagnostics businesses, while the decline in diabetes care revenue was mainly due to a drop in traditional glucose monitoring income as more patients shifted to continuous monitoring. The decline in Roche's clinical site business was caused by an 88% decrease in immunoassays and a 42% drop in molecular sales.

The company stated that basic operations have seen a sales decline across all regions. Roche also announced that its Elecsys IL-6 immunoassay has received IVDR certification for use in diagnosing neonatal sepsis.

Roche confirmed its previous guidance for a low single-digit percentage decline in sales at constant exchange rates for the full year 2023, with Roche Group CEO Thomas Schinecker stating during a conference call following the release of the third-quarter results that the company expects to be "at the upper end of the guidance." He stated,Roche Expects 2023 COVID-19 Test Revenue to Drop by 4.5 Billion Swiss Francs, Revised from Previous Forecast of 5 Billion Swiss Francs

Edwards Lifesciences

Edward Lifesciences Q3 Sales Increase by 12% to $1.48 Billion; Fixed Exchange Rate Sales Up by 11%Earnings per share were $0.63, adjusted earnings per share were $0.59. Its first transcatheter tricuspid valve replacement system, EVOOQUE, received the CE mark. Its PASCAL Precision system received approval from Japanese regulators, while the MITRIS RESILIA surgical mitral valve obtained the CE mark, and the enrollment for the pivotal trial of its first transcatheter mitral valve replacement system, SAPIEN M3, was completed. The company reiterated its full-year 2023 financial guidance, with sales growth of 10% to 13% at constant exchange rates.

CEO Bernard Zovighian stated, "We are pleased with the strong performance in the third quarter, which includes significant achievements such as the approval of several new therapies for patient treatment worldwide and important clinical milestones, along with another quarter of double-digit sales growth. The growing demand for our advanced technologies, combined with the successful execution of our innovation strategy, gives us great confidence in the substantial opportunities to address unmet patient needs and drive differentiated long-term value."

Transcatheter Aortic Valve Replacement (TAVR) Company Reports $961 Million in TAVR Sales This Quarter, Up 11% Year-over-Year, or 10% at Constant Exchange RatesThe company's sales growth rate in the United States and overseas is similar. Globally, calculated at constant exchange rates, the company's average selling price remained stable.In the United States, Edwards Lifesciences' TAVR sales were in line with overall procedural growth, and the company successfully launched the SAPIEN 3 Ultra RESILIA valve.

Surgical Structural Heart and Critical CareThis quarter, the sales of surgical structural heart reached $247 million, increasing by 12%, or 11% at constant exchange rates. This growth was driven by the adoption of the company’s high-quality RESILIA products and overall procedural growth. The sales of critical care this quarter were $221 million, increasing by 7% year-over-year, or 6% at constant exchange rates. The strong adoption of the Smart Recovery technology portfolio and the Acumen IQ sensor equipped with the Hypotension Prediction Index algorithm contributed to the sales growth.Other Financial Performance: The adjusted gross margin for this quarter was 76.4%, compared to 81.0% in the same period last year. This year-over-year decrease was primarily due to the impact of foreign exchange, as Edwards Lifesciences' gross margin was unusually positively affected by foreign exchange last year.

Sales, general and administrative expenses for the third quarter were $440 million, or 29.7% of sales, compared to $377 million in the same period last year.This growth was driven by investments in personnel within the transcatheter product field to support the company's growth strategy and performance-based compensation. R&D expenses for the third quarter were $270 million, accounting for 18.3% of sales, compared to $234 million in the same period last year. This increase was primarily due to ongoing investments in the company’s transcatheter valve innovations, including increased clinical trial activities. Free cash flow for the third quarter was $356 million, defined as $411 million in cash flow from operating activities, less $55 million in capital expenditures.

As of September 30, 2023, the total amount of cash, cash equivalents, and short-term investments was $1.9 billion. During the third quarter, the company repurchased approximately $174 million worth of shares through a pre-established 10b5-1 plan. The total debt was approximately $600 million.

Edwards Lifesciences maintains its full-year sales guidance for the entire company and each product group. The company anticipates that total sales growth for the full year, on a constant currency basis, will be in the range of 10% to 13% for both the company overall and TAVR. Zovighian stated:"We are confident in the company's focused and differentiated strategy, as heart valve failure in patients worldwide is largely underdiagnosed and undertreated. We remain convinced that success can be driven in the future through innovation and leadership."

Boston Scientific

In the third quarter of 2023, Boston Scientific Corporation reported net sales of $3.527 billion, representing an 11.2% increase compared to the same period last year.Net Sales by Business and Region for the Third Quarter:

Completion of the first phase of registration for the ADVANTAGE Atrial Fibrillation Clinical Trial, studying the FARAPULSE PFA System for the treatment of patients with persistent atrial fibrillation (AF).And began enrolling in the extended part of the study to evaluate the safety and efficacy of the FARAPOINT PFA catheter as an adjunct for cavotricuspid isthmus (CTI) ablation, a procedure used to treat atrial flutter.

FDA Approves POLARx Cryoablation System, Including POLARx FIT Cryoablation Balloon Catheter, for Treating Patients with Paroxysmal Atrial Fibrillation.

Announcing FDA Approval of the Latest Generation WATCHMAN FLX Pro Left Atrial Appendage Closure Device (LAAC), Designed to Improve Visibility During Device PlacementReduce post-implantation device-related thrombosis and treat a broader range of patient anatomies.

Received U.S. FDA 510(k) clearance for the launch of the next-generation LUX-Dx II/II+ Insertable Cardiac Monitor (ICM) System for long-term arrhythmia monitoring.

AVVIGO Multimodal Navigation System Receives CE Mark, U.S. FDA Clearance, and Japan PMDA Approval – A Next-Generation Technology Offering High-Quality Intravascular Ultrasound (IVUS) Imaging and Physiological Assessment of Coronary Vessels and Lesions.

Obtained FDA reclassification and marketing approval in the U.S. to expand the indications for the AXIOS Stent and Electrocautery Enhanced Delivery System. The new indication allows the device to be used for endoscopic gallbladder drainage in patients with acute cholecystitis who are at high surgical risk.

Announcing FDA Approval to Expand the Use of WaveWriter Alpha Spinal Cord Stimulator (SCS) System for Treating Painful Diabetic Peripheral Neuropathy (DPN).Announcement of the Agreement to Acquire Relievant Medsystems, Inc., a Privately Held Medical Technology CompanyDeveloped and commercialized the only system for bone marrow nerve ablation approved by the U.S. FDA, used for spine-related pain and subject to conventional closure conditions.

The company estimates that the net sales growth rate for the fourth quarter of 2023 will be approximately 9% to 11% on a reported basis, and the organic growth rate will be approximately 8% to 10% compared to the same period last year. The fourth-quarter organic net sales guidance excludes the impact of foreign currency fluctuations and the net sales attributable to acquisitions and divestitures, as the comparable net sales from these acquisitions and divestitures account for less than the entire period.

Danaher

Danaher (NYSE: DHR) Releases Third Quarter Report 2023.The main financial data for this quarter are as follows: net profit of $1.1 billion, or $1.51 per diluted common share, and non-GAAP adjusted diluted net earnings per share of $2.02.Total revenue decreased 10.5% year-over-year to $6.9 billion. Non-GAAP core revenue declined 11.5%, with non-GAAP base business core revenue down 3.0%. Third-quarter operating cash flow was $1.7 billion, and non-GAAP free cash flow was $1.3 billion.

Danaher Corporation executives said on Tuesday,China’s complex macro environment and the volatility of the life sciences market impacted the company’s financial results for the third quarter and are expected to have a lasting effect for the remainder of the year.

In the life sciences business:The company's core revenue from its overall business in China saw a moderate decline in the third quarter, with a particularly significant impact in the bioprocessing field.Due to a weak funding environment and low levels of underlying activity, Danaher CEO Rainer Blair said on the company's earnings call Tuesday morning that the sector saw a 45% decline in China.

Blair stated that the revenue in the life sciences sector experienced a larger-than-expected decline, particularly throughout the quarter, as China's challenging funding environment continued to deteriorate. The foundational life sciences business decreased in the low single-digit percentage range, while the life sciences instrumentation segment dropped by a mid-single-digit percentage. The pharmaceutical and biopharmaceutical markets remained weak, although the life sciences research and applied markets stayed stable. Blair noted that high-end instruments performed better compared to less specialized solutions.

He pointed out that the life science instruments business accounts for less than 10% of Danaher's total business.

Genomic consumables core business also saw a low single-digit decline. Although the company achieved double-digit growth in areas like plasmids, proteins, gene synthesis, and gene editing, this growth was offset by declines in NGS and basic research, Blair stated. He noted that the pharmaceutical and biotechnology markets within the life sciences business "experienced some degree of downturn," particularly in the U.S. and China, as large pharmaceutical clients "tightened their belts" on capital expenditures.

Short-term negative impact, long-term optimistic opportunities: Overall,Life sciences revenue in China underperformed expectations. Blair noted that some anti-corruption measures in the country have slowed down the equipment tendering and installation process. Equipment tenders were postponed by several weeks, and the installation of large capital equipment decreased.But Danaher Corporation has seen this trend weaken in recent weeks. He stated that these anti-corruption measures will not negatively impact short-term or mid-term growth and will ultimately provide a level playing field for multinational companies in China.

The company did not see changes in the demand for China's bioprocessing market, but Blair pointed out that the business has been affected by a weaker funding environment and overcapacity in the past few quarters.

In terms of diagnostic business: Compared with bioprocessing and life sciences, the number of patients in China's diagnostic business has basically returned to normal after the pandemic. However, the volume-based procurement in China's diagnostic field will mainly affect Beckman Coulter Diagnostics. Danaher's Chief Financial Officer, Matt McGrew, stated that the company believes headaches related to VBP (volume-based procurement) will have an adverse impact of $50 million per year over the next few years, as prices are expected to drop by about 50%. He mentioned that this negative factor will be "relatively mild and controllable for a period of time."

Long-Term Optimism for the Chinese Market: Despite Danaher's weak performance across multiple sectors in China, Blair stated that he believes China is currently undergoing a post-pandemic restart and that the demand for biopharmaceuticals is "just scratching the surface." The large and growing middle class "demands access to the most advanced drugs in the world," so Danaher continues to "view China as a mid- and long-term opportunity because the fundamentals are right."

Overall, the Danaher report shows,Third-Quarter Revenue Decreased by 11% Year-over-Year. In the three months ended September 30, revenue declined from $7.66 billion a year ago to $6.87 billion but exceeded Wall Street's consensus estimate of $6.26 billion.Core revenue decreased nearly 12% year-over-year on a non-GAAP basis, including a 3% decline in the base business.

According to the company's Q3 2023 Form 10-Q filed with the U.S. Securities and Exchange Commission, revenue from life sciences decreased from $1.72 billion in the third quarter of 2022 to $1.71 billion, while life science instruments declined by a mid-single-digit percentage. The segment's core revenue fell by nearly 3%.

Danaher Diagnostics Business Revenue:In terms of diagnostics, revenue fell from $2.68 billion a year ago to $2.25 billion (approximately RMB 6.463 billion), with core revenue also dropping by 16%, although the underlying core revenue of the basic business grew within the mid-single-digit percentage range.Core revenue in clinical diagnostics grew at a mid-single-digit rate, driven by over 20% growth in Cepheid's non-respiratory testing, Radiometer’s core growth exceeding high-single digits, and Beckman Coulter Diagnostics achieving mid-single-digit core growth. Blair also noted that Cepheid’s Group A Streptococcus and sexual health tests grew by 25%.

For the fourth quarter, Danaher expects core revenue from its base business to decline in the mid-single-digit percentage range. For the full year, the company anticipates that core revenue growth from its base business will be slightly lower than last year. The company stated that the financial results for the third quarter included contributions from Veralto, but noted that guidance for the fourth quarter and full year of 2023 will not include Veralto.

Danaher expects biotechnology core revenue to decline in the high single-digit percentage range, while life sciences core revenue will remain stable throughout 2023.Diagnostic revenue is expected to decline in the mid-single digits in 2023, even as the company raised its testing revenue forecast for Cepheid from $1.2 billion to $1.6 billion.

Canon

On October 26, Canon Group released its financial report for the third quarter of 2023. According to the report,In the third quarter of 2023, Canon Group's revenue increased by 2.9% year-on-year to 1,025.247 billion yen, and its net profit growth reached 14.8%.In the printing business field, the second-quarter sales revenue increased by 2.8% year-on-year to 570.4 billion yen; in the imaging business field, the sales revenue for this quarter increased by 8.7% year-on-year to 220.7 billion yen. In the medical business field, sales in the European region and the Japanese market grew steadily. The sales revenue in this field for this quarter increased by 5.0% year-on-year to 132.4 billion yen; in the industrial equipment and other products business field, the sales revenue for this quarter decreased by 9.4% year-on-year to 78.8 billion yen.

Expected in the second half of 2023, the downside risks brought about by global geopolitical risks and persistent inflation leading to global monetary tightening still exist.But on the other hand, the unemployment rate and income situation in the United States and Japan will improve, so the overall world economy is showing a trend of recovery. In terms of medical business, although the market prospects are not clear, the market is currently expected to remain strong.

CEO Mike Romans said on this week's earnings call that while 3M does not foresee "any obstacles" to completing the spin-off of its healthcare business, there is still "a lot of work to do." According to 3M’s latest update this week, the company’s long-planned healthcare business spin-off is still expected to be completed in the near future, albeit later than initially anticipated.

Amid 3M's announcement of a decline in overall company revenue, the company released the latest updates on its spin-off plans. Net sales were $8.3 billion, a decrease of 3.6% compared to the same period last year.Despite being the best-performing segment among 3M's four core businesses, the healthcare sector still experienced a year-on-year decline. Its quarterly sales were slightly below $2.1 billion, representing a 0.2% decrease, while year-to-date sales fell by 3.5%. Sales in the first nine months of this year amounted to approximately $6.2 billion, compared to about $6.4 billion in the same period last year.

Meanwhile, this manufacturing giant has fallen into even deeper losses: the company reported a net loss of more than $2 billion this quarter and a total loss exceeding $7.9 billion so far this year. In contrast, after the first nine months of 2022, 3M reported a positive profit of $5.2 billion.

This decline was partly due to 3M recording a $4.2 billion pre-tax charge this quarter related to the settlement of a large-scale class-action lawsuit over defective earplugs allegedly sold to the U.S. military.3M Company has agreed to pay a total of more than $6 billion in cash and stock by 2029.

Philips

October 23, 2023Philips announced its latest quarterly report, with group sales increasing by 11% year-on-year to reach 4.5 billion euros.Adjusted EBITA increased to 457 million euros, representing 10.2% of sales, compared to 209 million euros, or 10.2% of sales, in the same period last year. Comparable order intake decreased by 9% compared to the third quarter of 2022.

Philips' financial report shows,Philips' Business Returns to Normal Track After Period of Recall-Impacted Operations; Comparable Sales Up 11% and Core Profit Grows.

However, Philips also reported a 9% decline in comparable orders. During a conference call with analysts to discuss the results, CEO Roy Jakobs attributed the drop to fewer orders from China, where hospitals are grappling with anti-corruption measures.

Diagnosis and Treatment:Comparable sales increased 14%, with all businesses achieving double-digit growth. The EBITA margin rose from 10.4% in Q3 2022 to 12.7%, primarily driven by the implementation of sales, pricing, and productivity measures.Growth was primarily driven by Latin America, China, the Middle East, and Turkey. Comparable order volumes declined by double digits compared to the third quarter of 2022, due to longer order delivery times and lower order volumes in China.

Connected Care: This Quarter,Connected Care's comparable sales increased by 10%, with double-digit growth in the monitoring business and mid-single-digit growth in the enterprise information business.The adjusted EBITA margin improved from -7.5% in Q3 2022 to 3.7%, primarily due to increased sales and productivity measures. Comparable orders for Connected Care declined by a mid-single-digit percentage compared to Q3 2022, as the comparison base for hospital patient monitoring related to installed base expansions and updates was higher over the past few years.

Personal Health Business:Performance improved compared to the previous quarter, with comparable sales increasing by 7%, mainly due to single-digit growth in the personal care and oral health businesses.Adjusted EBITA margin increased to 18.7%, compared to 14.1% in the third quarter of 2022, driven by increased sales, pricing, and productivity measures.

Company Innovation Highlights:

•Philips signed a 10-year, €100 million enterprise monitoring services agreement with one of the largest healthcare systems in the U.S., covering 20 hospitals and more than 3,000 beds.This agreement enables health systems to continuously access the latest technologies, including software and services, while reducing initial investment.

•Philips Launches New Image-Guided Therapy Mobile C-Arm Zenition 30.Its workflow enhancements and exceptional image quality enable surgeons to provide better care for more patients, helping to alleviate the staffing shortages faced by many hospitals.

• Philips launched its dynamic monitoring products in Japan,Combining Philips ePatch ambulatory ECG monitor with ECG analysis through artificial intelligence and advanced algorithms.This innovative approach aims to reduce the workload of clinicians and improve the patient experience.

• In recognition of its leadership in driving sustainable healthcare,Philips completes a hospital-wide joint action plan for Tampere Heart Hospital in Finland to decarbonize its clinical operations.Following similar action plans by the Vanderbilt University Medical Center and the Champalimaud Foundation, Philips co-developed a roadmap to reduce carbon emissions in patient flow, technology usage, and consumables usage.

•Philips Sonicare DiamondClean 7900 Series Electric Toothbrush Successfully Launched on Major Chinese Online Shopping Platforms Alibaba and JD.comMarket. Due to the continuous growth of customer demand, it has taken the first position in the premium toothbrush category on Alibaba's Tmall.

Philips Uses Q3 Results to Provide Update on Respiratory Business, Still Impacted by Global Recall of Millions of Sleep Apnea Devices and Ventilators. The company stated that it has completed repairs on over 99% of sleep therapy devices, a development that has enabled Philips to re-enter the market.

Overall, Philips now expects full-year 2023 comparable sales growth of 6-7%, an Adjusted EBITA margin of 10-11%, and free cash flow at the upper end of the targeted range of €700-900 million. This reinforces Philips' confidence in achieving its three-year plan to create value with sustainable impact.

Breakthrough Industry Difficulties

On August 22, 2023, Medtronic (NYSE:MDT) announced its first-quarter earnings report for the fiscal year 2024 (FY24) ended July 28, 2023, and raised its full-year guidance.

According to the report released by Medtronic,Its global revenue for the first quarter of fiscal year 2024 was $7.7 billion (approximately RMB 56.19 billion), representing a reported growth of 4.5% and organic growth of 6.0%; on a reported basis, GAAP net income for the first quarter was $791 million (approximately RMB 5.76 billion), a decrease of 15%; non-GAAP net income was $1.596 billion (approximately RMB 11.63 billion), an increase of 6%.Among them:

Cardiovascular segment Q1 revenue was $2.85 billion (approximately 20.79 billion yuan), representing a 5.5% increase as reported and a 6.2% organic growth year-over-year.

Neuroscience Portfolio Q1 Revenue $2.219 Billion (Approx. 16.17 Billion RMB), Up 4.9% Reported and 5.6% Organic Growth Year-over-Year;

Medical Surgical Group's Q1 revenue was $2.039 billion (approximately 14.86 billion RMB), representing a 5.5% growth as-reported and a 6.1% organic growth year-over-year.

Diabetes Segment Revenue in the First Quarter was $578 million (approximately 4.21 billion RMB), representing a year-over-year increase of 6.8% as-reported and 6.3% organic growth.

Medtronic is still in the process of spinning off its Patient Monitoring and Respiratory Interventions businesses, which were initially planned to be separated into an independent Connected Care company. In December last year, Bloomberg reported that these business units had attracted interest from potential buyers, including Siemens Healthineers and GE Healthcare. It is reported that Medtronic currently expects to complete the spin-off in the first half of this fiscal year. The company has been evaluating different types of transactions to maximize shareholder value.

After the U.S. Food and Drug Administration lifted the warning letter on Medtronic's diabetes business, allowing the company to introduce its MiniMed 780G pump and Guardian 4 sensor into the United States, Medtronic reported growth in pump sales and new prescriptions:The company has begun launching the MiniMed™ 780G system and Guardian™ 4 sensor in the diabetes field, as well as the Micra™ AV2 and Micra™ VR2 leadless pacemakers in the cardiovascular field in the United States;

FDA Advisory Panel to Decide This Week on Recommending Approval for Medtronic's Simplicity Spyral Renal Denervation System. At the end of last year, the company released results from a pivotal trial on the device, which were mixed.

Medtronic Chairman and CEO Geoff Martha expressed satisfaction with the financial report and affirmed the company's execution and innovation capabilities. He said:"We have kicked off the new fiscal year with strong performance. We achieved mid-single-digit revenue growth again this quarter, reflecting our broad-based strength across businesses and regions. All four of our segments reached 6% organic revenue growth. At the same time, we have made significant progress on our comprehensive transformation journey, which will drive sustained growth and create more value for shareholders."

END

Surging 60%, This Country Accelerates Medical Device Imports from China

Embarking on a Digital Journey: Leading Chinese Oral Care Platform Announces New Acquisition

Olympus, Class I Recall

Just Now, Another Acquisition by the Radiotherapy Giant

Out of the Blue, da Vinci Faces a "Formidable Rival"

Just Now! Johnson & Johnson Medical Technologies, Leadership Change

New Pattern in the Endoscope Market: China-Made Dark Horse Breaks Through Industry Development

Founder of China's Leading Imaging Company Transfers All Shares

Ophthalmic Instrument Unicorn to Be Sold

The only one in China with both proton and heavy ion systems

BusinessBusiness cooperation email: qxzj@landianyiliao.com