Medtronic Inc.
(MDT) recently launched a new vertebral body replacement device, T2 SCEPTOR Distractible End Cleats System, for the replacement of a collapsed, damaged or unstable vertebra.

The product is used in the thoracic and lumbar spine region (T1-L5) of the body in combination with PYRAMESH C Surgical Titanium centerpieces and additional anterior and/or posterior spinal instrumentation to augment stability.

Approval of the new device should strengthen Medtronic’s position in the spine market. The company is a global leader in medical technology, specializing in implantable and interventional therapy devices and products. It is a market leader in cardiology and spine devices that benefit from scale, resources and incremental sales synergies within the medical devices industry.

Medtronic has a deep product pipeline and a strong R&D program that positions it for long-term organic growth, not relying purely upon acquisitions. Its main competitors include St. Jude Medical (STJ) and Boston Scientific Corp. (BSX).

Medtronic’s management has a typical ‘ONE Medtronic’ approach that seeks to achieve the following goals: driving sustainable long-term growth of 9%-11% through innovation, increasing operating margins by 300 to 400 basis points, ensuring EPS growth of 11%-14% and returning a minimum of 40%-50% of free cash flow to shareholders annually and aligning the organization for consistent execution. Based on the company’s results, we believe that the company is well on track for achieving these goals.

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