GlobalData: Medtronic’s MI Business to Exhibit Slow Growth

Following Medtronic’s announcement on the impact of COVID-19 on its business; Aliyah Farouk, Medical Device Analyst at GlobalData, a data and analytics company, offers her view:
 
“GlobalData expects Medtronic’s minimally invasive business to exhibit slow growth despite the high demand for certain product lines such as ventilators. Medtronic has increased its production for these devices and plans to further ramp up production up to five times more than pre-pandemic levels. However, GlobalData expects that there will not be a drastic upsurge in revenue as the products in high demand generally carry a lower margin. Additionally, the company has committed to not raise ventilator prices as result of COVID-19.”
 
Medtronic’s US weekly revenue drastically fell by 60% with revenue from other regions also negatively affected due to COVID-19. Furthermore, the company’s job postings decreased by 35% between March and April 2020, according to GlobalData’s Job Analytics Tool. Major disruptions have also been reported across the supply chain due to factory shutdowns in China with Medtronic especially impacted by the suspension of operations at its manufacturing facilities in China.
 
For many companies around the world, the pandemic has exposed the risky dependence on global supply chains. It is therefore no surprise that limitations in supply has inadvertently led to revenue loss for Medtronic.”