22 May 2020
Posted in Medical Devices
Medtronic’s gains in respiratory business not enough to prevent losses in revenues due to COVID-19
Following Medtronic Q4 financial results;
Azadeh Laffafian, PhD, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:
“Many segments of the medical devices market have been negatively impacted by the COVID-19 pandemic. The main culprit has been the deferral of elective and non-urgent procedures leading to a reduction in the purchase and use of medical devices. However, the impact has not been entirely negative, as certain devices which are used to address the COVID-19 pandemic such as ventilators have experienced a surge in demand. This mixed impact is reflected in Medtronic’s Q4 financial results.
“Overall, Medtronic’s fourth quarter revenue declined by 25%. Many of Medtronic’s business sectors such as cardiac and vascular, surgical innovations and brain therapies experienced a significant negative impact. One example area of growth, which provided some respite, was Medtronic’s respiratory business, which experienced a high demand for ventilators.
“Medtronic does have a very strong position in the medical devices market and sales are expected to mostly recover with lifting of COVID-19 related restrictions and the return of elective procedures.”