Medtronic posts modest Q1 growth, bolstered by coronary, endo sales

Medtronic has reported single-digit growth in its first quarter of fiscal year 2013, which ended July 27 of this calendar year.

The Minneapolis-based company reported worldwide first quarter revenue of $4.01 billion, an increase of 2 percent. As reported, first quarter net earnings were $864 million, an increase of 8 percent over the same period in the prior year. 

First quarter international revenue of $1.78 billion declined 1 percent over the previous year’s first quarter. International sales accounted for 44 percent of Medtronic's worldwide revenue in the quarter. The emerging market revenue was $438 million, representing 11 percent of company’s revenue.

Cardiac and vascular group
The cardiac and vascular group includes the cardiac rhythm disease management (CRDM), coronary, structural heart and endovascular businesses. The group had worldwide sales in the quarter of $2.12 billion, representing an increase of 1 percent. The cardiac and vascular group international sales of $1.17 billion declined 2 percent.

CRDM revenue of $1.19 billion declined 5 percent. First quarter revenue from implantable cardioverter-defibrillators (ICDs) was $675 million, a decline of $22 million from last year’s first quarter, while pacing revenue was $463 million, a decline of $45 million. Continued growth of the atrial fibrillation products unit partially offset weaker pacing sales, according to the company, adding it experienced “stabilization” in the U.S. ICD market.

Coronary revenue of $433 million grew 11 percent. “Sales of drug-eluting stents increased 36 percent on a constant currency basis, driven by significant share gains of the Resolute Integrity drug-eluting stent in the U.S. market,” Medtronic said.

Structural heart revenue of $280 million grew 2 percent, which the company said was driven by “strong sales” of the CoreValve transcatheter aortic heart valves in international markets.

Endovascular revenue of $209 million grew 12 percent. 

Restorative therapies group
The restorative therapies group, which includes the spine, neuromodulation, diabetes and surgical technologies businesses, had worldwide sales in the quarter of $1.89 billion, representing an increase of 3 percent. The group international sales of $616 million increased 1 percent.

Diabetes revenue of $364 million grew 3 percent. Growth in the quarter was driven by “strong sales” of continuous glucose monitoring (CGM) products, including the Veo insulin pump and the Enlite CGM sensor, which had “solid growth” in international markets, the company said.

Surgical technologies revenue of $324 million grew 22 percent. Medtronic said its revenue growth after adjusting for the acquisitions of Peak Surgical and Salient Surgical Technologies was 9 percent.