single-handedly annihilated any negative impact the two backsliding sectors may have had on overall company revenue, which
mushroomed 42. 3 percent. Likewise, the losses had no effect on
Medtronic’s FY16 net income or operating profit, which surged
32.2 percent and 40.5 percent respectively.
One of four product franchises formed from the Covidien acquisition, the Neurovascular division outshined its Group brethren
through strong sales of the Solitaire FR mechanical thrombectomy
device, Pipeline Flex (United States and Japan), and Pipeline Flex
with Shield technology (Europe). The Pipeline Flex is a flow diversion device used to treat large and giant wide-necked brain aneurysms that are attached to parent vessels measuring between 2.5
and 5 mm in diameter; the version with Shield technology includes
a surface synthetic biocompatible polymer.
Surgical Technologies also helped offset the poor performances in Spine and Neuromodulation, increasing revenue 8 percent
to $1.77 billion. Growth in this division was driven by power systems such as Aquamantys, which uses transcollation technology
to provide hemostatic healing of soft tissue and bone; and PEAK
PlasmaBlade, as well as Midas Rex products, monitoring devices,
and O-arm imaging systems.
The gains realized in Surgical Technologies and Neurovascular
revenue in fiscal 2016 not only annulled the losses in the two
contracting franchises, they also pushed Restorative Therapies
Group total sales up 7 percent to $7.2 billion. The Neurovascular
division’s birth was primarily responsible for the increase, though
an additional selling week in the first quarter of F Y 16 also helped,
according to Medtronic.
Besides breeding the Neurovascular franchise, the Covidien
purchase also sired the Aortic & Peripheral Vascular, Surgical Solutions, and Patient Monitoring & Recovery divisions, the latter
two of which are housed within the newly created Minimally Invasive Therapies Group. Its fiscal 2016 performance was practically legendary, with total Group revenue quadrupling (
skyrocketing 301 percent) to $9.56 billion.
Fostering the Minimally Invasive Therapies Group sales surge
were staggering revenue spikes from its two product divisions.
Surgical Solutions proceeds increased more than fourfold, or 307
percent, to $5.26 billion, due mainly to robust demand for the
Endo GIA Reinforced Reload device (a stapler) with Tri-Staple
technology, the LigaSure Maryland Jaw 37 cm laparoscopic sealer
and divider, and the Valleylab FT 10 energy platform—a suite
of electrosurgical tools and advanced vessel sealing products
equipped with LigaSure technology. The company’s gastrointestinal diagnostic product platform also helped drive sales growth.
The 293 percent jump in Patient Monitoring & Recovery
proceeds (to $4.3 billion) was beholden to strong U.S. sales of
respiratory and patient monitoring equipment (sensors, airway
products, acute ventilator systems); patient care and safety devices (electrodes, compression, SharpSafety, dialysis products);
and nursing care goods (incontinence, enteral feeding, wound
The newborn Aortic & Peripheral Vascular division posted an
equally impressive showing in fiscal 2016, bolstering revenue 52
percent to $1.63 billion on strong sales of the IN.PACT Admiral
drug-coated balloon, Valiant Captiva TAA stent graft, Aptus Heli-
FX endoanchor, and Endurant IIs Abdominal Aortic Aneurysm
three-piece system, an endograft ideal for patients with challeng-
ing distal aortic and iliac anatomy.
Like its siblings, the Aortic & Peripheral Vascular division’s extraordinary earnings rubbed off on its parental unit, leading to a
9 percent sales hike (to $10.1 billion) in the Cardiac and Vascular Group. Small but nonetheless solid gains in Cardiac Rhythm
& Heart Failure and Coronary & Structural Heart revenue also
helped boost proceeds, as the two divisions improved sales 4 percent and 2 percent respectively.
Cardiac Rhythm & Heart Failure achieved growth ($5.46 billion in total sales) from strong sales of the Arctic Front Advance
Cardiac CryoAblation Catheter system, Reveal LINQ insertable
cardiac monitor and Evera MRI SureScan ICD (implantable cardioverter defibrillator). Launched in the second quarter of FY16,
the Evera SureScan defibrillator allows ICD patients to undergo
full-body magnetic resonance imaging (MRI) scans in any position. The device is paired with the Sprint Quattro Secure MRI
SureScan DR4 leads, which is proven safe for MRI use.
Coronary & Structural Heart revenue ($3.1 billion total) received a lift from the CoreValve Evolut R recapturable system’s
U.S. and Japanese performance, the Resolute Onyx drug-eluting
stent’s European acclaim, U.S. demand for the Resolute Integrity
drug-eluting stent, and the debuts of the Non-Compliant Eu-
phora and Semi-Compliant Euphora balloon dilatation catheters.
Medtronic experienced a bit of déjà vu in its Diabetes Group,
where net sales increases and growth drivers mimicked the previ-
ous fiscal year. Proceeds, for example, swelled 6 percent—as they
did in FY15—to $1.86 billion, riding the coattails (once again) of
the MiniMed 530G System with Enlite sensor, and the MiniMed
640G System with the Enhanced Enlite sensor. The company,
however, made a significant effort in FY16 to break the monotony
for 2017 by fortifying its bid to become a more comprehensive
diabetes solutions provider.
Medtronic’s anti-boredom measures included new partner-
ships with electronics giant Samsung, analytics startup Glooko,
and fellow medtech behemoth Becton, Dickinson and Company
(BD). The alliances are intended to improve access to diabetes
technology, as well as provide diabetics and their caregivers with
secure, seamless, and timely access to integrated diabetes data.
Medtronic and Samsung agreed to co-develop Android smartphone apps that pull data from Medtronic’s insulin pumps and
continuous glucose monitoring devices. The apps provide diabetics with convenient access to their blood glucose data through
Samsung mobile phones and wearable devices.
The Android apps are designed to work with Medtronic’s
pocket-sized MiniMed Connect device, which transmits data
from the MiniMed 530G and Revel insulin pumps to a corresponding smartphone app for the patient, and to a remote web
display for providers. Medtronic claims that MiniMed allows pa-