Medtronic Launches New Product

Medtronic, Inc. (MDT - Analyst Report) recently launched the KYPHON Cement Delivery System (CDS) in the U.S. on a full-scale basis. The new product is an addition to the company’s extensive KYPHON Balloon Kyphoplasty product portfolio used for the treatment of vertebral compression fractures (VCFs). 

The KYPHON Cement Delivery System enables physicians to maintain a safer and longer distance from the radiation source during the cement delivery phase compared to the company’s traditional delivery system. It decreases the radiation exposure exponentially. The new product launch is a shot in the arm for Medtronic as it will increase sales in the Spinal and Biologics segment and strengthen the company’s leadership position in this market. Spinal is Medtronic’s second-largest revenue generating segment, representing roughly 23% of total revenues. 

The company has widely used its balloon kyphoplasty products with an estimated over 700,000 fractures treated globally till date. Medtronic is one of the world’s leading medical technology companies, specializing in implantable and interventional therapy devices and products. The company’s main competitors include St. Jude Medical (STJ - Analyst Report) and Boston Scientific Corporation (BSX - Analyst Report).



Medtronic’s management has a typical ‘ONE Medtronic’ approach that encompasses the following goals: drive sustainable long-term growth of 9%-11% through innovation; focus on operating margins -- increase by 300 to 400 basis points; EPS growth of 11%-14% and return a minimum of 40%-50% of free cash flow to shareholders annually; and align the organization for consistent execution. Medtronic’s first quarter of fiscal 2010 results indicate that the company is well on track in achieving these goals.

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