[Original image from Unsplash]
It’s been four months since Geoff Martha took over the corner office at Medtronic (NYSE:MDT), and it’s becoming clear that he has ambitious plans for the world’s largest medical device company.
During the company’s Q1 earnings call on Aug. 25, Martha said management in coming weeks plans to outline plans for a “new Medtronic” that is more nimble and competitive. He touted the pipeline of products the company has built, saying that it was time to play offense and expand market share now that the pipeline is kicking in.
“We’re determined to make this pipeline count, not just for patients, our customers but for shareholders,” Martha said. He later added: “Over time, longer-term, we want to put the tech in medtech. And we want to shift, we want to pool in some of these digital technologies to change our offerings.”
Raj Denhoy and other Jefferies analysts in a research note described the strategy as “turning the battleship.”
Denhoy and his colleagues said: “It is certain to remain a debate: Can MDT, which has been struggling to consistently achieve even 5% growth the past several years, hope to sustainably grow faster? How will that be married against profitability? The pipeline is full and recent acquisitions set MDT on the right footing, making execution the linchpin.”
Martha outlined a host of technologies that could be key to Medtronic’s growth. Here are seven of them: