Medtronic CEO: We’re not for sale
Medtronic Inc. CEO Art Collins assured shareholders that the medical device firm is not for sale, despite rumors that Johnson & Johnson is planning a bid.
Collins also explained why Medtronic’s stock-price slump in recent weeks, from $60 in January to the mid $40. For one, the company suffered the recall of thousands of implantable cardioverter defibrillators (ICD) by Guidant Corp., now owned by Boston Scientific Corp. For another, the Centers for Medicare and Medicaid Services proposed to cut reimbursements on medical devices to hospitals.
Although the proposal was not approved, it caused uncertainty among investors.
Medtronic is a big maker of ICDs. ICD sales, which make up less than 25 percent of Medtronic’s revenue, have also been sliding lately. Medtronic plans to spend between $70 million and $100 million on sales and marketing for an awareness campaign about sudden cardiac arrest.
The company also is planning growth in a variety of its other products, such as diabetes and neurological devices.
