In response to changing market conditions, Medtronic made a strategic decision to leave the ventilator market and reorganize its respiratory and patient monitoring businesses. The rationale behind this decision emphasizes the company’s commitment to optimizing its portfolio to align with evolving industry trends, says GlobalData, a leading data and analytics company.

Medtronic’s existing ventilator portfolio includes products like the Puritan Bennett 980 and Puritan Bennett 840, which are high-performance ventilators intended mainly for critically ill patients in high-acuity settings.

Elia Garcia, Medical Analyst at GlobalData, comments: “Once emergency ventilators were required during the COVID-19 pandemic, the ventilator market was opened up to new players by the pressing need for designs that could accommodate a wide range of patients. While it is true that the market for ventilators is moving toward lower acuity models on its own, if we consider Remote Patient Monitoring (RPM) as a whole from a design perspective, market trends suggest that in the future, there will be growth in the number of RPM products with systems integration designs.”

Medtronic’s decision to exit the ventilator market and consolidate the remaining Patient Monitoring and Respiratory Interventions (PMRI) businesses into a new unit named Acute Care and Monitoring is a response to a combination of factors; the segment’s decreasing profitability, which the company described as “unprofitable,” has been made worse by a slowdown in growth over the previous year and a few manufacturing-related recalls.

Garcia concludes: “By reallocating resources towards areas of higher growth potential, Medtronic aims to strengthen its position as a leader in healthcare technology. As the industry continues to evolve, the company’s strategic shift underscores its commitment to innovation and driving positive outcomes for patients. Medtronic looks confident in its ability to establish leadership within this newly integrated business as the company keep its efforts to investing in AI applications to create complex integrated systems.”