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DEVICES
&
IMPLANTS
Medtronic Sells Medical Products Business for $6.1B
— 6 Takeaways
By Adam Schrag
M
edtronic sold various monitoring and
recovery products to Cardinal Health
to promote better company portfolio
management, according to the Star Tribune.
Here are six things to know:
1. e transaction will close in the second
quarter of fiscal year 2018.
2. e entities Medtronic is selling gener-
ated roughly $2.4 billion in revenue over
Medtronic's last four quarters.
3. Medtronic has sought to divest lower-tech
medical technology products acquired in
its January 2015 merger with Dublin, Ire-
land-based Covidien over the last few
months.
4. e transaction includes 17 manufactur-
ing facilities and analysts expect it to net
Medtronic $6.1 billion before taxes.
5. Divested product lines include dental/ani-
mal health, chart paper, wound care, inconti-
nence, electrodes and more.
6. Medtronic reportedly plans to use $1 bil-
lion of the transaction's proceeds to repur-
chase shares in FY 2018 and reduce its debt.
Medtronic CEO Omar Ishrak said to the Star
Tribune, "ese products — while truly
meaningful to patients in need — are best
suited under ownership that can provide the
investment and focus that these businesses
require… At the same time, we can put these
proceeds to work, investing over the long-
term in higher returning internal and exter-
nal opportunities." n
DePuy Synthes Acquires
3-D Technology From Tissue
Regeneration System — 5
Takeaways
By Adam Schrag
O
rthopedic device company DePuy Synthes ac-
quired Tissue Regeneration System's 3-D technology
to boost its trauma platform and better treat bone
defects.
Here's what you need to know:
1. TRS' 3-D printing methods will improve DePuy Synthes'
ability to create patient-specific bioresorbable implants with
a unique mineral coating.
2. The implants support bone healing in patients with ortho-
pedic and craniomaxillofacial deformities and injuries.
3. The acquisition is expected to help DePuy's trauma plat-
form thrive.
4. Johnson & Johnson, DePuy Synthes' parent company,
hopes to develop more patient-specific healthcare solutions
with 3-D printing technology.
5. DePuy and TRS began collaborating in 2014 through John-
son & Johnson Innovation.
Johnson & Johnson Global Head Robert G. Urban, PhD, said,
"The acquisition of the TRS technology by DePuy Synthes is
testament to our ability to identify and work collaboratively
with promising early-stage companies and entrepreneurs to
accelerate bringing innovative new products to market." n
Slight Drop in Q1 Johnson &
Johnson Orthopedic Sales,
Hitting $2.3B: 5 Key Notes
By Laura Dyrda
J
ohnson & Johnson reported orthopedic sales
dropped slightly in the first quarter of 2017.
Here are five things to know:
1. Orthopedics sales dropped 0.7 percent in the first
quarter, hitting $2.3 billion. U.S. sales were $1.2 billion,
a nearly 1 percent decline, while international sales
were only down 0.3 percent to $948 million.
2. The company's hip sales hit $352 million in the first
quarter, up 2.9 percent over the same period last year.
The U.S. sales were up 3 percent to $209 million; inter-
national hip sales were $143 million.
3. Knee sales in the United States were up 0.8 percent
to $246 million, and there was a 4.8 percent growth in
international knee sales, which hit $152 million. Over-
all, knee sales were up 2.3 percent to $398 million.
4. Spine sales dropped 3.6 percent to $933 million in
the first quarter, driven by a 5.5 percent decline in U.S.
spine sales. International spine sales dropped 1 per-
cent.
5. Trauma sales were flat at $642 million in the first
quarter. The company reported 2.6 percent growth in
U.S. sales, which was offset by a 3.8 percent decrease
in international trauma sales. n
