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Medtronic makes two key additions to its board. How activist Elliott can build shareholder value
CNBC· 2025-08-23 11:51
Company Overview - Medtronic PLC is the largest medtech company globally by revenue, with a history of innovation and market leadership since the 1940s [3] - The company's revenue segments include Cardiology (37%), Neuroscience (29%), Medical Surgical (25%), and Other (9%) [3] Stock Performance - Medtronic's stock price has appreciated only 15% over the past decade and has decreased by 8% in the last five years, indicating long-term investor frustration [4] - The company has delivered mid-single digit revenue growth for the past 10 years, which has been underwhelming compared to peers [4] Strategic Changes - Following engagement with Elliott Investment Management, Medtronic appointed John Groetelaars and Bill Jellison to its board and formed a Growth Committee and an Operating Committee [2][5] - The Growth Committee will focus on portfolio management, identifying tuck-in M&A opportunities, and reviewing existing business inefficiencies [5] - The Operating Committee aims to address margin challenges and improve gross margin expansion, which has eroded approximately 500 basis points since the Covid-19 pandemic [6] Future Growth Prospects - Medtronic plans to spin off its diabetes business within the next 15 months to concentrate on core operations [7] - Two product developments, PulseSelect and Symplicity Spyral, are expected to contribute significantly to long-term growth [7] Activist Engagement - Elliott Investment Management has successfully completed the activist phase of its engagement and is now focused on the business turnaround [8] - The addition of directors with extensive medtech experience is aimed at enhancing the company's strategic direction [8]
半年盘点|美国医疗企业财报密集公布,哪些业务最赚钱?
Di Yi Cai Jing· 2025-07-24 10:15
Core Insights - The demand for medical devices used in innovative drug development remains strong, with cardiovascular medical devices and surgical robots being key growth drivers, while the diagnostic testing market continues to show weakness [1] Group 1: Company Performance - Thermo Fisher Scientific raised its annual profit forecast, citing strong demand for drug development products, leading to a 12% increase in its stock price [3] - Danaher also raised its annual profit forecast, highlighting a stable demand from pharmaceutical clients for bioprocessing services, with monoclonal antibodies accounting for over 75% of its bioprocessing revenue [3] - Boston Scientific increased its annual profit forecast due to strong demand for cardiovascular medical devices and reduced its tariff-related cost impact from $200 million to $100 million [4] - Johnson & Johnson reported over 6% growth in medical device sales, reaching $8.54 billion, driven by strong performance in cardiovascular devices [4][5] - Intuitive Surgical reported better-than-expected profits and revenues, with a 17% year-over-year increase in global da Vinci surgical procedures [5] Group 2: Market Trends - The cardiovascular medical device market is experiencing robust growth, with companies like Boston Scientific and Johnson & Johnson leading the way [4][5] - The surgical robotics sector is becoming a critical growth engine for medical technology companies, benefiting from increased accessibility in minimally invasive therapies [5] - The diagnostic business is facing challenges, as evidenced by Abbott's downward revision of profit expectations due to declining demand [5]