Following Medtronic’s announcement on the impact of COVID-19 on its business;
Aliyah Farouk, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:
“GlobalData expects Medtronic’s minimally invasive business to exhibit slow growth despite the high demand for certain product lines such as ventilators. Medtronic has increased its production for these devices and plans to further ramp up production up to five times more than pre-pandemic levels. However, GlobalData expects that there will not be a drastic upsurge in revenue as the products in high demand generally carry a lower margin. Additionally, the company has committed to not raise ventilator prices as result of COVID-19.
“Medtronic’s US weekly revenue drastically fell by 60% with revenue from other regions also negatively affected due to COVID-19. Furthermore, the company’s job postings decreased by 35% between March and April 2020, according to GlobalData’s Job Analytics Tool. Major disruptions have also been reported across the supply chain due to factory shutdowns in China with Medtronic especially impacted by the suspension of operations at its manufacturing facilities in China.
“For many companies around the world, the pandemic has exposed the risky dependence on global supply chains. It is therefore no surprise that limitations in supply has inadvertently led to revenue loss for Medtronic.”
For more information
To gain access to our latest press releases: GlobalData Media Centre
Analysts available for comment. Please contact the GlobalData Press Office:
EMEA & Americas: +44 (0)207 936 6400
Asia-Pacific: +91 40 6616 6809
To gain access to our latest press releases and expert analysis on developments in your industry, please connect with us on:
About GlobalData 4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.