In Q2, Medtronic sales dropped 4%, which the company says is due to the impact of Hurricane Maria on its operations in Puerto Rico, on top of the divestiture of a trio of businesses to Cardinal Health.
“Excluding the approximate $55 million to $65 million impact of Hurricane Maria to the company’s revenue, which was split across the company’s Minimally Invasive Therapies Group and Restorative Therapies Group, second-quarter revenue growth would have been 4% on a comparable, constant currency basis,” the company reported in a statement.
The full-year guidance for both the Minimally Invasive and Restorative Therapies groups have been revised because of the hurricane, but the former’s growth will increase in the second half, with “many product launches” in fiscal 2018, stated Omar Ishrak on the second-quarter earnings call.
In diabetes, growth declined 2%, affected by limitations on the supply of continuous glucose monitoring sensors, but the company is working on growing its sensor capacity, which is planned to be finished in the fourth quarter.
Medtronic was awarded FDA approval for its “artificial pancreas,” the MiniMed 670G hybrid closed loop system, last fall and launched the device in a Priority Access program. It started shipping systems and patients in June. The company anticipates growth to “significantly improve” in Q3 as it has completed shipping pumps for the program, Ishrak added.
On top of that, Johnson & Johnson is exiting the insulin pump market within the United States and Canada, Medtronic now has access to the 90,000 patients who use Animas insulin pumps. When Animas reported it would stop the manufacture and sale of its pumps, it partnered with Medtronic to provide its customers the opportunity to transfer to a new device.