Medtronic topped estimates in its latest earnings, fueled by sales from valves and diabetes products. For the Dublin-based company’s 4Q18 earnings it brought in about $8.14 billion, a 6.5 percent increase.
The firm’s Cardiac and Vascular group (CVG) earned $3.1 billion and grew by 10.1 percent. Within CVG group, the Coronary & Structural Heart businesses had the best showing.
“Coronary & Structural Heart delivered impressive 12.8% growth, driven by the rollout of our Resolute Onyx, drug-eluting stent in the U.S. and Japan as well as, low 20s growth in the transcatheter aortic valves,” said Omar Ishrak, president and CEO of Medtronic, according to a Seeking Alpha Transcript. “This was driven by continued strong global demand for our Evolut PRO valve and expanded indications in the U.S., which has resulted in above market levels of growth for the past five quarters.”
Ishrak said that another key accomplishment in the quarter was approval for a global pivotal trial of Symplicity Spyral, a new therapy for treatment-resistant hypertension.
There have been some key changes in Medtronic’s diabetes unit, which had sales that rose 26% to $645 million. A game changer for the unit was FDA approval of the 670 G insulin pump system, the world's first hybrid, closed-loop artificial pancreas. And last year Johnson & Johnson shut down Animas Corp., and the nearly 90,000 patients using its insulin pumps had the option to transfer to Medtronic pumps.
“We have seen continued strong performance out of the 670G in the U.S. and this is really encouraging, because in many ways, we are just getting started here,” said Hooman Hakami, president of the diabetes group for Medtronic said, according to a Transcript from Seeking Alpha. “So, you look at those dynamics, all of those things led to six points of share gains for us across both consumable and durable pumps this past quarter which we are obviously really excited about.”