Medtronic sees single-digit gains in Q3

Medtronic has reported a small jump in revenue and net earnings in its financial results for its third quarter of fiscal year 2013, which ended Jan. 25.

The company reported worldwide third quarter revenue of $4.03 billion, an increase of 3 percent. The Minneapolis-based company reported third quarter net earnings were $988 million, an increase of 6 percent over the same period in the prior year.

Third quarter international revenue of $1.86 billion increased 5 percent. International sales accounted for 46 percent of Medtronic’s worldwide revenue in the quarter. Emerging market revenue of $475 million increased 20 percent and represented 12 percent of company revenue.

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 $2.1 billion, representing an increase of 3 percent. Medtronic said the group revenue performance was driven by growth on a constant currency basis in coronary, endovascular, structural heart and atrial fibrillation (AF) solutions, partially offset by declines in implantable cardioverter-defibrillators (ICDs). Group international sales of $1.2 billion increased 4 percent.

The CRDM revenue of $1.17 billion declined 2 percent. Third quarter revenue from ICDs was $654 million, a decline from $674 million in the previous year's third quarter, while pacing revenue was $459 million, a decline from $467 million in the 2012 third quarter. The company said that AF solutions had strong revenue growth driven by continued global acceptance of the Arctic Front Advance balloon with EvenCool Cryo Technology. 

Coronary revenue of $445 million grew 16 percent. The device maker reported that sales of drug-eluting stents increased, driven by "continued significant share gains" of the Resolute Integrity drug-eluting stent in Japan and strong performances in the U.S. and other global markets.

Structural heart revenue of $272 million grew 3 percent. Growth was driven in part by sales of the CoreValve transcatheter aortic heart valve, Medtronic said.

Endovascular revenue of $212 million grew 12 percent. Medtronic said that growth was driven by the Valiant Captivia thoracic stent graft in several geographies, the Endurant aortic stent graft in Japan, and the peripheral stent portfolio, including the Complete SE vascular stent, globally.

The Restorative Therapies Group includes the Spine, Neuromodulation, Diabetes, and Surgical Technologies businesses. The Group had worldwide sales in the quarter of $1.93 billion, representing an increase of 2 percent. Group revenue was driven by growth in Surgical Technologies, Neuromodulation, and Diabetes, partially offset by declines in bone morphogenetic protein and balloon kyphoplasty.

The diabetes revenue of $377 million grew 3 percent. Growth in the quarter was driven by "strong sales" of continuous glucose monitoring products, according to the company. Insulin pump system growth slowed in the quarter, as the Company is awaiting approval of its new products, the MiniMed 530G in the U.S. and MiniMed 640G in Europe.