Medtronic 2015 Annual Report Download - page 60

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MRI system. We received U.S. FDA approval for our conditionally safe SureScan MRI system earlier than anticipated and
transitioned manufacturing in the first quarter of fiscal year 2014 to the SureScan MRI system, resulting in supply constraints
which continued through early in the second fiscal quarter of 2014. Growth in sales of our InterStim Therapy for overactive
bladder, urinary retention, and bowel incontinence continued during fiscal year 2014, although at a slower rate compared to the
prior fiscal year as a result of increased competition from non-device therapies.
Surgical Technologies net sales for fiscal year 2014 were $1.562 billion, an increase of 10 percent over the prior fiscal year. The
increase in net sales was driven by continued worldwide net sales growth across the portfolio of ENT, Neurosurgery, and
Advanced Energy, partially offset by unfavorable foreign currency translation. Growth was driven by strong sales of navigation,
power systems, monitoring, Aquamantys Transcollation, PEAK PlasmaBlade technologies, and Strata adjustable valves.
Additionally, net sales growth was positively impacted by the late fiscal year 2013 launches of the Trivantage EMG tube in the
U.S. and Indigo high-speed otologic drill internationally.
Looking ahead, we expect our Restorative Therapies Group could be affected by the following:
•Changes in procedural volumes, competitive and pricing pressure, reimbursement challenges, impacts from
changes in the mix of our product offerings, the timing of product registration approvals, and fluctuations in
foreign currency.
•Integration of the Neurovascular division into the Restorative Therapies Group. Neurovascular was formerly part
of Covidien and develops, manufactures, and markets products and therapies to treat diseases of the vasculature
in and around the brain.
•Market acceptance and continued adoption of innovative new products, such as our recent Cervical product
introductions, our OLIF procedural solutions, and other biologics products, including MAGNIFUSE and
GRAFTON products, and POWEREASE, a powered instrument solution for Solera.
•Market acceptance of BKP. We remain focused on communicating the clinical and economic benefits for BKP.
We will continue to tailor this product offering to meet market needs and respond to competitive challenges. We
anticipate additional continued pricing pressures and competitive alternatives in the U.S. and European markets.
Additionally, opportunities for growth may exist in vertebroplasty and other vertebral compression fractures
(VCF) treatments. We continue to evaluate global markets and specific therapies for ways to treat more patients
with VCF.
•Acceptance of Kanghui’s broad portfolio of trauma, spine, and large-joint reconstruction products focused on the
growing global value segment.
•Adoption rates of stimulators and leads approved for full-body MRI scans to treat chronic pain in major markets
around the world.
•Continued acceptance of the pain stimulators to treat chronic pain, including RestoreSensor, which is currently
available in the U.S. and certain international markets. RestoreSensor is a neurostimulator for chronic pain that
automatically adjusts to the patients’ position changes.
•Continued and future acceptance of our current indications for Medtronic DBS Therapy for the treatment of
movement disorders, epilepsy (approved in Europe), and OCD. The DBS Therapy portfolio includes Activa PC,
our small and advanced primary cell battery, and Activa RC, a rechargeable DBS device.
•Continued acceptance of InterStim Therapy for the treatment of the symptoms of overactive bladder, urinary
retention, and bowel incontinence.
•Continued growth from Advanced Energy products and strategies to focus on its four core markets of orthopedic,
spine, breast surgery, and CRDM replacements.
•Continued acceptance of the Surgical Technologies StealthStation S7 and O-Arm Imaging Systems.
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