Medtronic Braces for COVID-19 Financial Impact

Like many of its peers, including Boston Scientific and Johnson & Johnson, Medtronic’s business has been impacted by procedure deferrals as healthcare systems around the world have deferred most elective procedures to focus on COVID-19.

While certain Medtronic products are in high demand due to COVID-19, an update from the company shows that the vast majority of its businesses have experienced declines during the global pandemic.

Medtronic said it expects COVID-19 to negatively affect its fiscal fourth quarter financial results, which ends Friday. Given the progression of COVID-19 around the world and the timing of the company’s fiscal quarter, Medtronic’s fourth quarter includes an additional month of impact compared to companies that operate on a calendar-based fiscal year.

Like many of its peers, including Boston Scientific and Johnson & Johnson, Medtronic’s business has been impacted by procedure deferrals as healthcare systems around the world have deferred most elective procedures to focus on COVID-19. The Dublin, Ireland-based company said capital equipment purchases, outside of ventilators and patient monitoring equipment, are also being deffered by hospitals during the pandemic.

Medtronic also noted that it expects an incremental negative impact to revenue from a decline in large customer orders that the company typically receives at the end of its fiscal year because customers are prioritizing cash and cutting back on spending, especially for products used in elective procedures.

Medtronic products that are in high demand as a result of COVID-19 include extracorporeal life support products such as extracorporeal membrane oxygenation machines and disposables, ventilators, pulse oximetry devices, capnography products, advanced parameter monitoring products, and diabetes supplies. Together, these product lines represented roughly 10% of Medtronic’s pre-COVID-19 global revenue, the company said.

By Amanda Pedersen | MD+DI

Image Credit: Medtronic


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Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.

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