Medtronic surgical robot deployment hits supply chain speed bumps
Medtronic’s first international deployment of its Hugo surgical robot is proceeding slower than expected, due to crimps in the global supply chain and initial manufacturing issues, according to the chairman and CEO of the medical technology giant, Geoff Martha.
In a quarterly earnings call with investors, Martha described the launch as being currently in a “limited release phase” after Hugo obtained a CE mark granting European approval in October and added that Medtronic is targeting a much stronger rise from mid-2022. .
“It’s certainly not a demand issue,” he said, of the delays, which the company says could end up pushing Hugo’s total sales for the year to below average. Medtronic’s previous goal of $ 50-100 million. “Our demand remains high, higher than we can meet at this stage. “
Martha said that although the pace of the business is slower than initially expected, Medtronic still expects Hugo to show sales in the double-digit millions. “We are out of schedule, but we are not late,” he added, pointing to surgeons who are currently using the system to perform urological and gynecological surgeries, and said the first case of Hugo’s general surgery is scheduled “overnight”.
At the same time, Medtronic plans to continue regulatory filings around the world and aims to begin submitting Hugo for FDA review “very soon.”
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Meanwhile, the still lingering effects of the COVID-19 pandemic – combined with staffing shortages among healthcare systems that have impacted device procedural volumes – had a larger impact on Medtronic’s revenue in the past. second quarter than the company expected, Martha said.
For this reason, the company lowered its financial guidance for the remaining half of its 2022 fiscal year to organic growth of between 7% and 8% from previous estimates of around 9%.
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In August, September and October, Medtronic total quarterly revenue $ 7.85 billion was a 3% increase from the same three months in 2020 and similar growth from the same period in 2019 before the pandemic.
The company’s larger medico-surgical portfolio posted revenue of $ 2.3 billion, a gain of 1%, mainly from sales of instruments such as surgical staplers and other medical devices. wounds, which increased by 7%, compared to its respiratory, gastrointestinal and renal divisions, which decreased by about 10%.
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Meanwhile, Medtronic’s neuroscience and diabetes arms saw gains of 4% and 2%, respectively, with the former supported by growth in products for stroke, neuromodulation and deep brain stimulation.
Sales of durable insulin pumps increased in the 1920s, the company said, following the launches of the MiniMed 770G in the United States and the 780G system abroad. However, sales of diabetes-related consumables declined by a few numbers.