Medtronic

Medtronic plc
Company type	Public
Industry	Medical devices
Founded	1949 in Minneapolis, Minnesota, United States
Founder	Earl Bakken, Palmer Hermundslie
Headquarters	Dublin, Ireland
Area served	Worldwide (over 150 countries)
Key people	Geoff Martha (CEO)
Products	Medical devices including pacemakers, implantable cardioverter defibrillators, remote patient monitoring systems, spinal cord stimulators
Number of employees	90,000+
Website	www.medtronic.com

Medtronic plc is a medical device corporation with dual American and Irish roots, maintaining its legal and executive headquarters in Ireland while its operational base is located in Minneapolis, Minnesota. The company shifted its legal domicile to Ireland following the 2015 acquisition of the Irish firm Covidien, a strategic decision aimed at capitalizing on more favorable corporate tax rates. Although its primary market remains the United States, Medtronic operates globally across more than 150 nations and employs upwards of 90,000 individuals.

Specializing in the development and production of sophisticated healthcare technologies and therapeutic solutions, Medtronic ranks as the largest medical device manufacturer worldwide by revenue. Its business strategy centers on innovation, exemplified by groundbreaking products such as wearable and implantable pacemakers, implantable cardioverter defibrillators, and remote patient monitoring systems. The company also leads in creating miniaturized devices, including the smallest pacemaker and spinal cord stimulator available globally.

Medtronic’s strong market presence is supported by a broad product range and key acquisitions like Covidien, which have consistently fueled growth and reinforced its competitive positioning within the medical technology sector.

History

Established in 1949 in Minneapolis by entrepreneur Earl Bakken and his brother-in-law Palmer Hermundslie, Medtronic began as a medical equipment repair business. Bakken went on to invent numerous medical devices that remain widely used today.

Bakken’s repair services brought him into contact with heart surgeon C. Walton Lillehei at the University of Minnesota Medical School. Following a 1957 blackout on Halloween that resulted in the death of a patient dependent on a pacemaker, Lillehei partnered with Bakken to create the first battery-powered external pacemaker—a portable device affixed to the chest that transmitted electrical impulses to regulate the heart.

Throughout the 1950s, Medtronic grew by distributing third-party equipment and designing custom devices. By 1960, it had developed the first implantable pacemaker and established its headquarters in St. Anthony, Minnesota, later relocating to Fridley during the 1970s. Medtronic’s main competitors in cardiac rhythm management include Boston Scientific and St. Jude Medical.

In 1997, Medtronic inaugurated a manufacturing plant in Tolochenaz, Switzerland, which produces one out of every five pacemakers implanted worldwide and serves as a European training hub for healthcare professionals.

Significant acquisitions include Physio-Control for $538 million in 1998; Bellco from private equity firm Charme Capital Partners in 2016; HeartWare International for $1.1 billion also in 2016; Crospon for $45 million in 2017; and Mazor Robotics for $1.64 billion in 2018. Additionally, Medtronic expanded into nutrition analytics by purchasing Nutrino Health Ltd at the end of 2018.

In recent years, Medtronic has strategically acquired companies such as Titan Spine (2019), Stimgenics (2020), Medicrea (2020), Companion Medical (2020), and Avenu Medical (2020). These acquisitions underscore a focus on advancing innovation across areas like spinal implants, neuromodulation therapies, intelligent insulin delivery systems, and vascular access technologies.

Omar Ishrak stepped down as CEO in April 2020, with Geoff Martha taking over leadership amid ongoing expansion and organizational transformation.

In 2021, Medtronic issued a recall for its HeartWare Ventricular Assist Device due to safety issues and halted sales following FDA advisories.

The company continued its growth trajectory by acquiring Affera, Inc. in January 2022 and forming strategic alliances such as one with Vizient to incorporate AI-driven surgical video analytics through the Touch Surgery Enterprise platform. In May 2022, Medtronic partnered with DaVita Inc. to establish an independent medical device company focused on kidney care that integrates Medtronic’s Renal Care Solutions.

Collaborations with GE Healthcare aim to meet increasing outpatient service needs at Ambulatory Surgery Centers (April 2022), while a partnership with coronary artery disease technology developer CathWorks includes an option for potential future acquisition (July 2022).

In October 2022, Medtronic revealed plans to spin off its Patient Monitoring and Respiratory Interventions divisions from its Medical Surgical Portfolio but reversed this decision by February 2024. Instead, these divisions were merged into a newly formed Acute Care & Monitoring business unit; simultaneously, the company discontinued its unprofitable ventilator product line.

History of Acquisitions

Medtronic
- Medtronic plc
  - Medtronic Inc. (Established 1949)
    - Ardian Inc (Acquired 2010)
    - Osteotech Inc (Acquired 2010)
    - ATS Medical (Acquired 2010)
    - Krauth Cardiovascular (Acquired 2010)
    - Fogazzi (Acquired 2010)
    - Invatec (Acquired 2010)
    - PEAK Surgical, Inc (Acquired 2011)
    - Salient Surgical Technologies Inc (Acquired 2011)
    - China Kanghui Holdings (Acquired 2012)
    - NGC Medical (Acquired 2014)
    - Sapiens Steering Brain Stimulation (Acquired 2014)
    - TYRX Inc (Acquired 2014)
  - Covidien (Created 2007 following Tyco International healthcare spin-off)
    - Sapheon Inc (Acquired 2014)
    - Reverse Medical Corporation (Acquired 2014)
    - Given Imaging (Acquired 2014)
    - Aspect Medical Systems (Acquired 2009)
    - Somanetics Corp (Acquired 2010)
    - ev3 Inc (Acquired 2010)
    - CV Ingenuity (Acquired 2012)
    - BÂRRX (Acquired 2012)
    - Newport Medical Instruments (Acquired 2012)
    - superDimension (Acquired 2012)
    - Oridion Systems (Acquired 2012)
    - VNUS Medical Technologies
    - Zephyr Technology (Acquired 2014)
- Advanced Uro-Solutions (Acquired 2015)
- Diabeter (Acquired 2015)
- CardioInsight Technologies (Acquired 2015)
- Aptus Endosystems (Acquired 2015)
- RF Surgical Systems (Acquired 2015)
- Medina Medical (Acquired 2015)
- Lazarus Effect (Acquired 2015)
- Bellco (Acquired 2016)
- HeartWare International Inc (Acquired 2016)
- Crospon (Acquired 2017)
- Mazor Robotics (Acquired 2018)
- Nutrino Health Ltd (Acquired 2018)
- Titan Spine (Acquired 2019)
- Klue (Acquired 2019)
- Stimgenics, LLC (Acquired 2020)
- Medicrea (Acquired 2020)
- Companion Medical (Acquired 2020)
- Avenu Medical (Acquired 2020)
- Intersect ENT (Acquired 2022)
- Digital Surgery (Acquired 2020)
- Affera, Inc. (Acquired 2022)

Worldwide Rankings

As of May 2018, Medtronic held the position as the largest medical device manufacturer globally by revenue in the year 2017 (refer to the table below).

In March of 2017, Bloomberg identified Medtronic alongside Wright Medical Group as the only U.S.-based medical device firms to have completed tax inversions, with Medtronic's strategic move in 2015 relocating to Ireland valued at over $100 billion. The Wall Street Journal reported in February 2018 that Medtronic's inversion was the most substantial corporate tax inversion among U.S. companies between the years of 2013 and 2016. By May of that year, it was acknowledged as the largest corporate tax inversion on record.

Top Global Medical Device Companies (Ranked by Revenue in 2017)
Position	Company	Revenue in 2017 ($ million)	Registered Legal Headquarters (Tax Jurisdiction)	Operational Headquarters (If Different)	Parent Organization (If Applicable)
1	Medtronic	29,710	Dublin, Ireland	Fridley, Minnesota, U.S.	–
2	DePuy Synthes	26,592	Raynham, Massachusetts, U.S.	–	Johnson & Johnson
3	Fresenius Medical Care	20,900	Bad Homburg, Germany	–	Fresenius SE
4	Philips Healthcare	20,896	Amsterdam, Netherlands	–	Philips
5	GE Healthcare	19,116	Chicago, Illinois, U.S.	–	General Electric
6	Siemens Healthineers	16,206	Erlangen, Germany	–	Siemens
7	Cardinal Health	13,524	Dublin, Ohio, U.S.	–	–
8	Stryker	12,444	Kalamazoo, Michigan, U.S.	–	–
9	Becton Dickinson	12,093	Franklin Lakes, New Jersey, U.S.	–	–
10	Baxter International	10,561	Deerfield, Illinois, U.S.	–	–

In November of 2021, Medtronic earned inclusion in the Dow Jones Sustainability World Index, underscoring its dedication to environmentally responsible business operations.

Business divisions and affiliates

Medtronic is organized into four main business divisions: the Minimally Invasive Therapies Group, Diabetes Group, Restorative Therapies Group, and Cardiac and Vascular Group. The company designs and manufactures treatments and devices for more than 30 chronic conditions, including heart failure, Parkinson’s disease, urinary incontinence, obesity, chronic pain, spinal disorders, and diabetes.

Acute Care & Monitoring

Located in Lafayette, Colorado, the Acute Care & Monitoring (ACM) division specializes in producing non-invasive monitoring devices for both hospital environments and home use. This segment incorporates product lines from acquisitions such as Covidien, Nellcor, Somanetics, Aspect Medical Systems, Oridion Medical, and Zephyr Technology. ACM’s product range includes pulse oximetry, capnography, bispectral index sensors, patient monitoring systems, remote monitoring software solutions, and tools facilitating electronic medical record integration.

CRDM

The Cardiac Rhythm Disease Management (CRDM) division is Medtronic’s longest-standing and largest segment. Its origins trace back to 1957 when founder Earl Bakken created the first wearable pacemaker. CRDM centers on electrical stimulation therapies for managing cardiac rhythm disorders while embedding diagnostic and monitoring capabilities within its devices. This division also encompasses Vitatron, a Dutch pacemaker manufacturer acquired in 1986 that now operates as a European subsidiary.

Programming of Medtronic and Vitatron pacemakers is carried out using the Medtronic Carelink Model 2090 Programmer via specialized interfaces.

In 2007, Medtronic issued a recall of the Sprint Fidelis leads—wires that connect defibrillators to the heart—due to a high incidence of failure leading to inappropriate or absent shocks. Research into failure rates and associated liabilities has continued but has been constrained by legal decisions. This recall significantly affected Medtronic’s reputation and highlighted the complexities and risks involved in manufacturing cardiac devices.

Spinal and biologics

As Medtronic’s second-largest business unit, Spinal and Biologics leads the global market in spinal and musculoskeletal treatment solutions. The company expanded this segment in 2007 by acquiring Kyphon, a major producer of spinal implants utilized in procedures such as kyphoplasty.

In May 2008, Medtronic Spine agreed to a $75 million settlement with the U.S. government following allegations of Medicare fraud related to billing practices for kyphoplasty procedures.

A 2012 Time magazine article emphasized Medtronic’s strong financial results in this area, reporting an average profit margin of 75.1% on spine-related products and therapies based on the company’s SEC disclosures.

Cardiovascular

Medtronic’s cardiovascular division addresses interventional cardiology, cardiac surgery, and vascular surgery with a focus on coronary artery disease, aortic conditions, and structural heart diseases. As of August 2024, this division’s portfolio consists of four principal product categories: cardiac rhythm management, heart failure therapies, structural heart and aortic devices, as well as coronary and peripheral vascular products.

Neuromodulation

Ranking as Medtronic’s third-largest segment, Neuromodulation delivers neurostimulation systems along with implantable drug delivery devices designed to treat chronic pain, movement disorders, and urologic or gastrointestinal ailments. In 2014, this business unit generated $1.9 billion in revenue, accounting for approximately 11% of Medtronic’s overall revenue.

Diabetes

Medtronic’s diabetes care division is located near California State University, Northridge. This segment traces its roots back to MiniMed Technologies, established in 1983 by entrepreneur Alfred E. Mann, initially spun off from Pacesetter Systems with the goal of creating insulin pumps. One of MiniMed’s pioneering products, the MiniMed 502, was among the earliest compact insulin pumps that contributed to broader market acceptance.

A major redesign in 1992 introduced the MiniMed 506, which resulted in a remarkable 357% increase in sales, illustrating how innovation can drive significant business expansion. Medtronic acquired MiniMed in 2001, leading to the creation of Medtronic MiniMed and broadening its range of diabetes-related products.

In 2009, Medtronic chose San Antonio, Texas, as the site for a new Diabetes Therapy Management and Education Center. This facility, spanning 150,000 square feet, was projected to generate around 1,400 new jobs to support the company’s growing operations.

The company further consolidated its leadership in the diabetes market with the 2017 introduction of the MiniMed 670G, recognized as the first FDA-approved Hybrid Closed Loop system for managing type 1 diabetes. Equipped with SmartGuard technology and the Guardian™ Sensor 3, this insulin pump automated basal insulin delivery by utilizing advanced algorithms for improved glucose control and patient outcomes.

Surgical technologies

The surgical technologies division focused on developing diagnostic and therapeutic devices for ear, nose, and throat (ENT) disorders as well as cranial, spinal, and neurological conditions. It encompassed the surgical navigation segment responsible for producing "StealthStation" systems—software and instruments designed for computer-assisted surgery (CAS)—alongside the O-arm Imaging System, a specialized intraoperative 3D fluoroscopy X-ray tool. These innovations primarily facilitated minimally invasive surgical procedures. In 2016, this division was dissolved and its functions were absorbed into newly formed business units.

Renal Care Solutions

This segment concentrated on products aimed at diagnosing and treating kidney-related diseases. In 2023, it was separated from Medtronic to become an independent entity known as Mozarc Medical.

Technology safety

In 2011, security expert Jay Radcliffe revealed a vulnerability in a Medtronic insulin pump that could potentially allow unauthorized remote control. Following this disclosure, Medtronic reassured users regarding the safety of their devices.

Prior to this, in 2008, researchers demonstrated that a Medtronic cardiac implant’s defibrillator function could be remotely accessed and patient data retrieved using laboratory equipment.

In February 2020, Medtronic issued a recall for approximately 322,000 MiniMed insulin pumps due to defective pump retainer rings linked to one fatality and nearly 2,000 injuries.

Portable ventilators

On March 30, 2020, amid the COVID-19 crisis, Medtronic publicly shared its portable ventilator design specifications to expedite global manufacturing efforts and address urgent demand.

Vitatron

Vitatron is a Medtronic subsidiary based in the Netherlands that specializes in developing and manufacturing cardiac pacing technologies. Acquired in 1986, it was originally an independent Dutch medical firm. Vitatron pacemakers are programmed through the Medtronic Carelink Model 2090 Programmer utilizing a dedicated interface.

Vitatron Historical Timeline

1956: Company established
1962: Introduction of first implantable pacemakers
1981: Launch of microprocessor-controlled pacemaker (DPG1)
1982: Development of rate-responsive pacemaker (TX1)
1984: Release of Quintech DDD featuring automatic upper rate adjustment ("mode switch")
1988: Implementation of Daily Learn algorithm (Rhythmyx)
1997: Introduction of upgradeable pacemaker system with atrial fibrillation diagnostics and treatment capabilities
2003: Debut of the world’s first fully digital pacemaker, the Vitatron C-Series
2004: Rollout of second-generation C-Series and T-Series digital pacemakers
2005: Launch of advanced C-Series A3 models designed for patients with bradycardia

Advocacy Efforts

Medtronic collaborates as a corporate sponsor with the Human Rights Campaign, a leading organization advocating for LGBT rights.

Concerns Regarding Animal Welfare

From 2005 to 2010, PETA actively urged Medtronic to enhance its standards for animal welfare in testing procedures. Criticism centered on certain experiments considered inhumane and the outsourcing of testing to countries with minimal regulatory oversight, such as China. Medtronic responded by conducting feasibility assessments and maintained that eliminating live animal testing was not feasible as of 2015, though it pledged to explore alternative methods. Following discussions with Medtronic leadership, PETA withdrew its shareholder proposals. Current details on Medtronic’s animal testing policies require updating.

Tax Inversion Strategy Relocating to Ireland

In June 2014, Medtronic completed a tax inversion through the acquisition of Irish-based Covidien for $42.9 billion in cash and stock. This transaction relocated Medtronic’s legal domicile to Ireland while its operational headquarters and executive management remained in the United States. The maneuver allowed Medtronic to avoid U.S. taxes on more than $14 billion held abroad and take advantage of Ireland’s lower corporate tax rates. This inversion stands as the largest ever, particularly after U.S. tax reforms in 2016 limited similar transactions. CEO Omar Ishrak highlighted the strategic benefits of the acquisition beyond tax considerations.

Ireland contributes less than 0.1% to Medtronic’s sales; most revenue and profits originate from the U.S. healthcare sector, which offers superior margins. Despite the inversion, Medtronic continues securing federal contracts within the U.S. and participates actively in American trade initiatives, preserving strong connections to its domestic operations.

By November 2018, Medtronic’s market value surpassed €115 billion, exceeding the entire Irish stock market capitalization of €104 billion (excluding Medtronic). The acquisition of Covidien elevated Medtronic to become the largest global medical device company by revenue.

Reaction to Russia-Ukraine Conflict in 2022

During the 2022 Russian invasion of Ukraine, Medtronic initially chose not to withdraw from the Russian market, resulting in Yale University assigning it the lowest "Digging In" ("F") rating for resisting calls to scale back operations. By June 2025, Medtronic adjusted its position slightly to the "Buying Time" ("D") category, indicating a temporary halt on new investments and product development while continuing existing business engagements.

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