On June 15, Medtronic announced its intention to acquire Covidien for $43 billion, which represents a 30% premium to Covidien’s stock price before the announcement. Medtronic was already the largest independent medical devices maker, with a market cap of $64 billion and a global manufacturing and distribution base, but with Medtronic’s pending acquisition of Covidien, we … Read more
The New York Times recently published an article highlighting a medical journal that took the unusual move of devoting an entire issue to dissecting the controversy over Infuse, a genetically engineered protein made by Medtronic, and widely used in spinal surgeries. The Spine Journal reviewed 13 studies previously published elsewhere and discovered that side effects … Read more
Medtronic’s business focuses on medical devices that treat heart rhythm, spinal, CNS, diabetic, and surgical and sleep apnea problems. The company’s publicly traded stock represents excellent value with a trailing P/E multiple of 11.8 and a dividend yield of 2.7%. The company’s 2010 results reversed a two-year slide in earnings and revenue growth. As we … Read more
Medtronic is one of the largest medical device companies in the world. The company develops and manufactures therapeutic medical devices for chronic diseases. Medtronic’s portfolio of products include implantable pacemakers, defibrillators, heart valves, stents, insulin pumps, and artificial spinal discs. However, year-to-date the company’s stock is down almost 22% versus a 7% gain in the … Read more
Medtronic’s performance year-to-date has been nothing short of awful. Last week the company reported a disappointing first fiscal quarter, with declines in key businesses segments that were worse than expectations. Although we believe the net impact at most warrants a slight reduction in our estimate of intrinsic value, the market saw fit to clip 11% … Read more