Medtronic 2016 Annual Report Download - page 46

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Vascular Group's net sales for fiscal year 2016 were $10.2 billion, an increase of 9 percent compared to the prior fiscal year.
Currency translation had an unfavorable impact on net sales of $572 million as a result of the change in exchange rates from the
prior year. The Cardiac and Vascular Group’s performance was favorably impacted by an additional selling week during the first
quarter of fiscal year 2016. The Cardiac and Vascular Group’s performance for fiscal year 2016 also benefited from the addition
of the Covidien Peripheral business into the Aortic & Peripheral Vascular division and strong net sales across all three divisions.
See the more detailed discussion of each division's performance below.
Cardiac Rhythm & Heart Failure net sales for fiscal year 2016 were $5.5 billion, an increase of 4 percent compared to the prior
fiscal year. The increase in Cardiac Rhythm & Heart Failure net sales was driven by strong growth in AF Solutions, with the
continued global acceptance of our Arctic Front Advance Cardiac CryoAblation Catheter (Arctic Front) system. Additionally, net
sales were driven by the continued adoption of the Reveal LINQ insertable cardiac monitor, and the launch of the Evera MRI
SureScan ICD in the U.S. during the second quarter of fiscal year 2016, with continued strong adoption through the fourth quarter
fiscal year 2016. Net sales for the Cardiac Rhythm & Heart Failure division were also affected by continued pricing pressures.
Coronary & Structural Heart net sales for fiscal year 2016 were $3.1 billion, an increase of 2 percent compared to the prior fiscal
year. Nets sales were driven by the CoreValve Evolut R recapturable system in the U.S., which was launched late in the first quarter
of fiscal year 2016, and a strong CoreValve launch in Japan in the fourth quarter of fiscal year 2016. In addition, net sales of
Coronary & Structural Heart division were driven by drug-eluting stents, including the Resolute Onyx drug-eluting stent in Europe
and the Resolute Integrity drug-eluting stent in the U.S., and the recent launches of the NC Euphora and SC Euphora balloon
dilatation catheters. Net sales were partially offset by continued pricing pressures in our Coronary business.
Aortic & Peripheral Vascular net sales for fiscal year 2016 were $1.6 billion, an increase of 52 percent compared to the prior fiscal
year. The Aortic & Peripheral Vascular division net sales performance benefited from the addition of the Covidien Peripheral
business. The increase in Aortic & Peripheral Vascular net sales was driven by strong growth of the IN.PACT Admiral drug-coated
balloon in the U.S. and globally, continued strength in Valiant Captiva TAA stent graft sales, continued solid adoption of our Aptus
Heli-FX endoanchor, and continued adoption of the Endurant IIs Abdominal Aortic Aneurysm (AAA) 3-piece system in the U.S.
Net sales for the Aortic & Peripheral Vascular division were affected by increased competition in international markets and
reimbursement cuts in Japan.
The Cardiac and Vascular Group's net sales for fiscal year 2015 were $9.4 billion, an increase of 6 percent compared to the prior
fiscal year. The Cardiac and Vascular Group’s performance was primarily a result of strong net sales in Cardiac Rhythm & Heart
Failure and Aortic & Peripheral Vascular and solid growth in Coronary & Structural Heart.
Cardiac Rhythm & Heart Failure net sales for fiscal year 2015 were $5.2 billion, an increase of 5 percent compared to the prior
fiscal year. The increase in Cardiac Rhythm & Heart Failure net sales was driven by the ongoing acceptance of the Reveal LINQ
insertable cardiac monitor and the launches of the Viva XT CRT-D with Attain Performa quadripolar CRT-D lead system in the
U.S. in September 2014 and Evera MRI SureScan ICD in Japan in November 2014. Net sales of the Cardiac Rhythm & Heart
failure division were also driven by the continued global acceptance of the Arctic Front Advance Cardiac CryoAblation Catheter
(Arctic Front) system, net sales from Cardiocom and our CLMS business, which includes the August 2014 acquisition of NGC
Medical S.p.A. (NGC).
Coronary & Structural Heart net sales for fiscal year 2015 were $3.0 billion, an increase of 3 percent compared to the prior fiscal
year. The increase in Coronary & Structural Heart net sales was driven by ongoing success of the CoreValve transcatheter aortic
heart valve in the U.S., the launch of the CoreValve Evolute R recapturable system in international markets, and the international
launch of the Resolute Onyx drug-eluting stent in November 2014. Net sales were partially offset by continued pricing pressures
in the U.S., Western Europe, Japan, and India in our Coronary business.
Aortic & Peripheral Vascular net sales for fiscal year 2015 were $1.1 billion, an increase of 20 percent compared to the prior fiscal
year. The Aortic & Peripheral Vascular division includes a portion of the Covidien Peripheral business, which contributed strong
performance during the fourth quarter of fiscal year 2015 on the strength of its chronic venous insufficiency products. The increase
in Aortic & Peripheral Vascular net sales was driven by IN.PACT Admiral drug-coated balloons in the U.S. and international
markets. Aortic & Peripheral Vascular net sales were also driven by strong sales of our Valiant Captivia Thoracic Stent Graft
System, and growth from the Endurant 2S Abdominal Aortic Aneurysm (AAA) Stent Graft System in the U.S. and Western Europe.
Net sales for the Aortic & Peripheral Vascular division were impacted by increased competitive and pricing pressures in the U.S.,
Western Europe, and Japan.
Looking ahead, we expect our Cardiac and Vascular Group could be affected by the following:
• Increasing competition, fluctuations in currency exchange rates, and continued pricing pressures.
• Continued acceptance and future growth of the Amplia/Compia/Claria family of MRI Quad CRT-D SureScan
systems. The Amplia and Compia MRI Quad CRT-D SureScan systems received U.S. FDA approval in February