Medtronic 2009 Annual Report Download - page 32

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28 Medtronic, Inc.
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
(continued)
and in the first quarter of fiscal year 2008 we completed the
divestiture of our Gastroenterology and Neurological diagnostics
product lines. The loss of these product lines had a negative net
sales growth impact of 4 percent for fiscal year 2008.
Net sales for fiscal year 2008 from Pain Management and
Movement Disorders products were $1.069 billion, an increase
of 11 percent over the prior period. The growth was driven by
key products in Pain Management including RestoreULTRA,
RestoreADVANCED and PrimeADVANCED neurostimulation
systems for pain management, our SynchroMed II drug delivery
pump and our surgical lead for spinal cord stimulation, the Specify
5-6-5. Movement Disorder revenue was driven by growth in
worldwide net sales of Activa DBS Therapy.
Net sales of Gastroenterology and Urology products increased
10 percent over fiscal year 2007 to $242 million. The growth in
Gastroenterology and Urology was led by net sales of our InterStim
II product, which experienced its first full fiscal year on the market,
and was partially offset by the impact of the divestitures of the
Gastroenterology and Urology diagnostic product lines.
Looking ahead, we expect our Neuromodulation operating
segment should be impacted by the following:
• Continued acceptance of RestoreULTRA, our most advanced
rechargeable neurostimulator. RestoreULTRA also offers an
innovative patient programmer that gives patients the ability
to customize their pain control.
• Continued acceptance of our Activa DBS Therapy for the
treatment of common movement disorders. We continue to
educate neurologists and the patient population on the
benefits that our Activa DBS Therapy offers them. Additionally,
Activa PC and RC, our next generation neurostimulators,
received FDA approval in April 2009; we look forward to the
anticipated launch in the U.S. in the first quarter of fiscal year
2010. Activa PC and RC were launched in Europe in January
2009. Activa PC is a primary cell device and Activa RC is the
therapy’s first rechargeable device.
• Continued acceptance of InterStim Therapy for the treatment
of overactive bladder and urinary incontinence.
• Continued acceptance of InterStim Therapy for the treatment
of fecal incontinence outside the U.S., and future launch and
acceptance within the U.S. We have submitted a pre-market
approval for InterStim Therapy for the treatment of fecal
incontinence and expect approval in the first half of fiscal
year 2010.
Diabetes Diabetes products consist of external insulin pumps and
related consumables (together referred to as Durable Pump
Systems), and subcutaneous continuous glucose monitoring
systems. Diabetes net sales for fiscal year 2009 were $1.114 billion,
an increase of 9 percent when compared to the prior fiscal year.
Foreign currency translation had an unfavorable impact on net
sales of approximately $13 million when compared to the prior
fiscal year.
Durable Pump Systems net sales for fiscal year 2009 were $983
million, an increase of 5 percent when compared to the prior
fiscal year. The increase in net sales resulted from demand for the
MiniMed Paradigm REAL-Time System that integrates continuous
glucose monitoring and insulin pump functionality and related
consumables. Net sales of Continuous Glucose Monitoring systems
(CGM) and other accessories were $131 million, an increase of 56
percent when compared to the prior fiscal year. Growth was
driven by strong acceptance of CGM in the U.S. and an increase
in U.S. sales of glucose test strips.
Diabetes net sales in fiscal year 2008 increased 18 percent over
the prior fiscal year to $1.019 billion. Foreign currency translation
had a favorable impact of $29 million on net sales when compared
to the prior fiscal year.
Durable Pump Systems net sales for fiscal year 2008 were $935
million, representing growth of 15 percent over the prior fiscal
year. The increase in net sales resulted from strong worldwide
market acceptance of the MiniMed Paradigm REAL-Time System
and related consumables. The sales increase of 35 percent outside
the U.S. was especially strong, driven by growth in the markets in
which the MiniMed Paradigm REAL-Time System was launched.
The strong growth outside the U.S. was offset by slowed growth
in the U.S., as we experienced a modest slowdown in replacement
business given the timing of upgrades to our latest technology.
Net sales of CGM and other accessories were $84 million, an
increase of 75 percent when compared to the prior fiscal year.
Growth was driven by strong acceptance of CGM in the U.S.
Looking ahead, we expect our Diabetes operating segment
should be impacted by the following:
• Continued acceptance from both physicians and patients of
the MiniMed Paradigm REAL-Time System.
• Continued acceptance and improved U.S. reimbursement of
the iPro CGM, a professional CGM recorder that provides
physicians valuable insight into their patients’ glucose levels.
The iPro CGM was launched in the U.S. in July 2008.