Medtronic 2013 Annual Report Download - page 7

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75732me_editorial.indd 3 7/1/13 6:13 PM
This improves response rates to the therapy, resulting in improved
device longevity and a reduction in heart failure hospitalizations.
In addition, hospitals are investing in our navigation, imaging, and
power capital equipment for spine surgery, as they see clear value
from improved surgical precision and more ecient procedures.
Our work in blood conservation is an early example of how we
can take a specic product and wrap it with a service to realize
even greater economic value. Blood management in hospitals
represents a signicant cost to the healthcare system, and is an area
where technology combined with process improvement can lead
to signicant savings. By leveraging our cardiac surgery products
and our Lean Sigma process expertise, we have been able to
demonstrate to hospitals lower overall blood costs and improved
operations, which has resulted in annual savings of hundreds of
thousands of dollars per hospital.
Globalization is our third imperative, where we seek to develop
tailored approaches and therapies to expand patient access,
improve clinical outcomes, and reduce costs in healthcare systems
around the world – at all levels of the economic pyramid.
Our revenue in international (non-U.S.) markets grew 7% on a
constant currency basis (2% as reported) in FY13, with revenue in
emerging markets growing 17% on a constant currency basis (14%
as reported). In the fourth quarter of FY13, emerging markets
represented 12% of revenue, and we expect these markets will play
an increasingly important role in Medtronic’s long-term growth.
We are pleased with this performance, but we believe we can
further our growth rates over the long term. Our key strategies are
aimed at tailoring our market development activities, customizing
our oerings to meet local demands, creating and enhancing
our relationships and partnerships with key local and regional
stakeholders, and adapting our distribution models to deliver our
products more eciently.
Our primary, near-term focus is to capitalize on the enormous
opportunity in the global premium segment, which we have
identied as a $5 billion annual opportunity. We will continue to
pursue this opportunity by driving penetration of our existing
and new therapies, raising patient and physician awareness of our
oerings, and supporting the development of infrastructure and
training of physicians where necessary.
| 3
Advanced Energy Products Deliver
Strong Growth and Patient Benets
In 2011, Medtronic acquired two surgical device companies
– Salient Surgical Technologies and PEAK Surgical – that
developed innovative products designed to improve patient
outcomes and reduce hospital costs. These two companies
were combined to form Advanced Energy, a new, high-
growth area within the Surgical Technologies business.
Advanced Energy contains two main product lines, each
oering unique clinical benets and economic value for
hospitals. The Aquamantys System uses Transcollation
technology, a combination of RF energy and saline, to reduce
blood loss during surgery. This technology has been shown
to reduce blood transfusions.1 Aquamantys products are
used across a wide range of specialties, including spine
surgery, orthopedic reconstruction, orthopedic trauma
and surgical oncology.
The PEAK PlasmaBlade works similarly to a traditional
surgical scalpel but uses pulsed plasma technology through
an insulated device tip. The result is very precise cutting
capability through any type of soft tissue. Using pulsed
plasma allows the device to operate at lower temperatures
than traditional electrosurgery, resulting in less thermal
damage.2 The PEAK PlasmaBlade is used regularly in breast
reconstruction, pacemaker and ICD replacement, and ENT
procedures. It has been shown to reduce operating room
time by 12 percent.3
1 Marulanda GA, Ulrich SD, Seyler TM et al. Reductions in blood loss with a bipolar
sealer in total hip arthroplasty. Expert Rev Med Devices 2008; 5(2):125-131.
2 Ruidiaz ME, Messmer D, Huang EJ et al. Comparative healing of human cutaneous
surgical incisions created by the PEAK PlasmaBlade, conventional electrosurgery,
and a standard scalpel. Plas Reconstr Surg 2011; 128(1):10 4-111.
3 Data on le. VR-00083.
Aquamantys 6.0
Bipolar Sealer
PEAK PlasmaBlade
3.0S