MD+DI Online is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

2014 Medtech Company of the Year Finalists: Medtronic



Medtronic CEO Omar Ishrak has defended the company's decision to merge with Covidien despite criticism of the inversion deal by lawmakers.

The world’s fourth-largest medical device company by revenue rocked the industry this year with its June announcement of a $42.9-billion merger with Ireland-based Covidien, the world’s eighth-largest device maker by revenue.

The move will significantly expand Minnesota-based Medtronic’s global footprint and free up $10 billion to fund R&D over the next decade. As part of the deal, Medtronic will also relocate its headquarters overseas, saving up to $4.2 billion in taxes, according to the Minneapolis StarTribune.

The inversion deal has drawn the ire of President Obama and Democratic lawmakers, and helped spur new federal regulations to make similar deals more difficult in the future. But analysts speculate that it may also set off a rash of medtech megamergers as Medtronic’s competitors scramble to build scale.


[image courtesy of MEDTRONIC]

TAGS: News
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.