
Missed, misunderstood, and deadly: A Cape Town family's heartbreak with hepatitis B
Little did he know that he would soon die of liver cancer caused by undetected hepatitis B.
Spotlight spent time with his family and spoke to experts to uncover how this overlooked virus continues to claim lives.
Desmond Pedro was getting ready to attend a course at a college in Bellville in Cape Town when he noticed a hardness under his ribcage. The 30-year-old unemployed father of two small children hoped to learn skills on the government-sponsored boiler-making course.
The strange condition worried him. When Desmond first went to a clinic, nurses said it wasn't serious and gave him laxatives for constipation. He returned three times and got the same response.
On his fourth visit, Desmond's wife went with him, and she insisted on a scan. Two weeks later, while on his way to college, he returned to receive the results.
His older brother, Mario tells the story: 'When he arrived, the clinic staff wouldn't let him leave. An ambulance took him to Tygerberg Hospital. We visited him that night but were told nothing. We felt helpless.'
About a week later, Desmond asked Mario to meet him at Tygerberg's oncology unit, where a doctor delivered the news of his diagnosis.
'When I arrived, he was in agony and couldn't stand up straight. This had all happened within two to three weeks. A porter brought a wheelchair, and we went into the doctor's office where the doctor told us hepatitis B had brought on Desmond's liver cancer.'
Hepatitis means that the liver is swollen or irritated. This can happen for many reasons, such as infections from viruses or bacteria, parasites, injuries, or when the body's immune system mistakenly attacks the liver.
Viral hepatitis is a type of liver inflammation caused by a virus.
There are five main types: A, B, C, D and E. As Spotlight previously reported, new, highly effective cures for hepatitis C are slowly becoming more widely available in South Africa.
Where did it come from?
Until Desmond's cancer diagnosis, he had no idea that he was carrying the hepatitis B virus in his body, nor where he contracted it.
The virus is transmitted from person to person through blood, semen or other body fluids.
It can, for instance, be passed from pregnant women infected with the hepatitis B virus to their babies during childbirth, through sexual contact with an infected person, sharing of needles carrying traces of infected blood, and accidental needlestick injuries in health workers working with people who have the virus.
After Desmond's diagnosis, his entire family were tested.
Mario said:
Both myself and my youngest brother, Johan tested positive for hepatitis B. To this day, we don't know where we got it or if we ever had the vaccine.
'At the time, I was 33. My mother was negative, as were our wives and all the children. For Desmond, it was too late.'
Once infected, some people have strong enough immune systems to fight off the infection and usually clear it within six months. This is called acute or short-term infection. People who get infected as adults normally have acute infections.
In long-term or chronic cases, it lasts more than six months and can lead to liver failure, liver cancer or cirrhosis - a condition where scar tissue has replaced healthy tissue to such an extent that the liver can no longer function.
The younger a person is when they contract the virus, the higher their risk of the condition becoming chronic, particularly in the case of newborn babies or children under five.
In most cases, people with chronic infection show no symptoms for years until they become seriously ill from liver disease.
A silent killer
One of the reasons that viral hepatitis can go undetected, as it did for Desmond, is that it is often asymptomatic.
Symptoms, for those who do get them, can start as soon as two weeks after infection and include stomach pain, joint pain, fever, extreme fatigue, dark urine and jaundice - a yellowing of the skin and whites of the eyes.
Professor Mark Sonderup, Associate Professor in the Department of Medicine and Division of Hepatology at the University of Cape Town, explains that with chronic inflammation in the liver, the body's attempt to heal the inflammation drives scarring, or fibrosis, of the liver.
Over 10, 20 or 30 years, he says, there's a serious risk of cirrhosis.
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'The other risk of hepatitis B, which increases dramatically as the scarring worsens, is that because the virus is a DNA virus and inserts itself into the DNA of the liver cell, it dramatically increases the risk of liver cancer which is why hepatitis B accounts for most liver cancer in the world.'
Sonderup says hepatitis B is endemic in South Africa and the region. He cites figures pegging the country's chronic infection rate at just below 5%, which suggests there are in the region of three million people living with the infection in South Africa.
Most cases can be treated
Chronic infection can usually be treated successfully with antiviral medicines if diagnosed in time. These medicines have to be taken for life since they suppress, but do not eliminate the virus.
For acute infection there are much fewer treatment options. Those with serious liver damage often need a liver transplant.
Since their diagnosis, Mario and Johan have been going to the Groote Schuur Liver Clinic where he says they are in good hands.
'They've been there for us from the start,' says Mario.
The brothers are both on tenofovir, an anti-retroviral used to treat chronic hepatitis B infection.
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'We take one tiny tablet a day, which suppresses our viral load and has no side effects. I take my tablet religiously at the same time every night.'
Tenofovir is also part of standard HIV treatment in South Africa. As such, it is taken by more than five million people in the country, some of whom will happen to have undiagnosed hepatitis B infection.
Sadly, Desmond's diagnosis came too late for antiviral treatment to save him.
Mario recalls:
I'll never forget the look on Desmond's face when the doctor said there was nothing they could do.
'The liver cancer was aggressive. He died at home about four weeks later. The time between getting his results and passing away was about two months.'
It is for this reason that Mario has become such a passionate advocate for hepatitis B testing.
'All it takes is a simple blood test, and if it's caught in time, you take one small tablet daily. There are no side effects and you're good to go,' he says.
Mario reckons nurses testing for HIV should be testing for hepatitis B at the same time.
A highly effective vaccine
One piece of good news is that many people in South Africa, especially those younger than 30 years of age, would have been vaccinated against the hepatitis B virus as babies.
The South African government began rolling out the vaccine in 1995, starting with a three-dose schedule for babies, administered at 6, 10, and 14 weeks.
'It took a while to reach full coverage across the entire country. To date, our numbers lag a little behind, in that full three dose coverage is somewhere in the mid 80 percent in South Africa,' says Sonderup.
'This is pretty decent, except that we do have babies born to women who are inadvertently chronically infected, and there's a full six-week period before the first dose of vaccine is given.'
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In other words, there's a six-week gap before babies receive their first hepatitis B vaccine, leaving them unprotected during that time.
This is why Sonderup recommends giving a vaccine birth dose within the first 24 hours after birth alongside the standard polio and BCG vaccines all newborns receive.
'This would be followed by the second, third and fourth doses at 6,10 and 14 weeks. This has been shown to completely shut down that potential six-week period where a baby may be exposed,' he says.
A phased approach
Dr Kgomotso Vilakazi-Nhlapo, the top hepatitis official in the National Department of Health, agrees that a birth dose is important.
However, she says that due to resource challenges, the department has opted for a phased approach.
'Instead of starting with the implementation of the universal hepatitis B birth dose vaccination, we test all pregnant women for the hepatitis B virus, treat those who are hepatitis B positive (and HIV negative) and offer the hepatitis B birth dose vaccine to newborn babies of pregnant women who tested positive for hepatitis B,' she says.
According to Vilakazi-Nhlapo, this approach was implemented in April 2023 in all public health facilities but by the end of December 2024, they were only testing about 50% of pregnant women.
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'This meant that women among the 50 percent who were not tested could be positive for hepatitis B and be transmitting the infection to their babies,' she says.
'Of course, it would be preferable to give a universal birth dose to all newborns, but, unfortunately, the budget and human resources remains an issue.'
Vilakazi-Nhlapo estimates that with around a million births per year and hepatitis B prevalence of around 5%, every year in the region of 50 000 women living with the virus are giving birth in South Africa.
What to do
Sonderup says the solutions to South Africa's hepatitis B problem are neither complex nor overly expensive.
'Firstly,' he says, 'we need to fully implement the universal birth dose vaccination; secondly, we need to ensure children complete their vaccine schedule in total, thirdly we need to screen pregnant woman and link them to additional care.'
He also says that in a country where almost 5% of people are living with the virus, everyone should be screened for hepatitis B at least once as we do with regular HIV testing.
'This can be done through a simple finger prick test and it's not expensive. People should at least know their status,' Sonderup says.
South Africa's key hepatitis B policy document is the viral hepatitis treatment guidelines published in 2019. Sonderup, who was involved in the development of the guidelines, is concerned about its implementation.
He blames 'policy inertia' and competition for limited resources for the country not having made greater progress against hepatitis B.
'But we can actually do a great deal with not very much, with significant impact, to eliminate a virus that continues to cause significant havoc,' he says.
'A shortage of resources, staff, and skills'
For her part, Vilakazi-Nhlapo blames a lack of 'resources, staff, and skills' for there not being more progress.
She says there is only one other person working with her on hepatitis at the national level, and no dedicated staff at provincial health departments.
'We work mainly with NGOs and civil society. Provincial physicians have helped us greatly to do our work but it's not enough,' Vilakazi-Nhlapo says.
'There is still insufficient knowledge both among healthcare workers and within communities about hepatitis B. For now, patients with hepatitis B are referred to hospitals … but the reality is that, if primary healthcare staff are managing HIV patients, they can manage hepatitis B patients,' she says.
She adds that they are trying to integrate hepatitis into other health programmes, such as those for maternal and child health.
'Everyone should know their status'
Back in Cape Town, Mario, now 45, says he feels healthy apart from the normal aches and pains associated with his age.
He has become an advocate for more awareness about hepatitis B.
'We'd never have known we had it if this hadn't happened to my brother. It's a silent killer. Someone could be dying of it right now without knowing. Everyone should know their status,' he says.
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Medtronic reports first quarter fiscal 2026 financial results
11th quarter in a row of mid-single digit organic revenue growth;Poised to accelerate growth GALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025. Key Highlights Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% as reported and 4.8% organic GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 increased 2% Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth guidance Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in the US, on strength of pulsed field ablation (PFA) products U.S. Centers for Medicare & Medicaid Services (CMS) posted proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system for hypertension; final NCD expected on or before October 8, 2025 Received CE Mark for LigaSure™ RAS vessel-sealing technology on Hugo™ robotic-assisted surgery (RAS) system "We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing," said Geoff Martha, Medtronic chairman and chief executive officer. "We're confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers." Financial ResultsMedtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes: Other revenue of $72 million in the current year and -$52 million in the prior year; and Foreign currency benefit of $159 million on the remaining segments. Q1 revenue by segment included: Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as reported and 7.0% organic, with a high-single digit increase in Cardiac Rhythm & Heart Failure, mid-single digit increase in Structural Heart & Aortic, and low-single digit increase in Coronary & Peripheral Vascular, all on an organic basis; Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported and 3.1% organic, with a high-single digit increase in Neuromodulation and mid-single digit increase in Cranial & Spinal Technologies, offset by a low-single digit decrease in Specialty Therapies, all on an organic basis; Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as reported and 2.4% organic, with low-single digit organic growth in both Surgical & Endoscopy and Acute Care & Monitoring; and Diabetes business revenue of $721 million increased 11.5% as reported and 7.9% organic. Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively. Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation. GuidanceThe company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance. The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%. Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60. "As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance," said Thierry Piéton, Medtronic chief financial officer. "Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value." Video Webcast InformationMedtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at and this earnings release will be archived at Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at Financial Schedules and Earnings PresentationThe first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here. About MedtronicBold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit and follow on LinkedIn. FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances. NON-GAAP FINANCIAL MEASURESThis press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis. Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release. Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. Contacts:Erika WinkelsPublic Relations+1-763-526-8478 Ryan WeispfenningInvestor Relations+1-763-505-4626 MEDTRONIC PLC WORLD WIDE REVENUE(1) (Unaudited) FIRST QUARTERREPORTEDORGANIC (in millions) FY26FY25GrowthCurrency Impact(4)FY26(5)FY25(5)Growth Cardiovascular $ 3,285$ 3,0079.3 %$ 68$ 3,217$ 3,0077.0 % Cardiac Rhythm & Heart Failure 1,7121,53511.5371,6761,5359.1 Structural Heart & Aortic 9308568.7229088566.1 Coronary & Peripheral Vascular 6436164.5106336162.9 Neuroscience 2,4162,3174.3272,3892,3173.1 Cranial & Spinal Technologies 1,2111,1475.5121,1991,1474.5 Specialty Therapies 702713(1.5)9694713(2.7) Neuromodulation 50445710.274964578.6 Medical Surgical 2,0831,9964.4402,0441,9962.4 Surgical & Endoscopy 1,6121,5444.4321,5801,5442.3 Acute Care & Monitoring 4714524.384644522.6 Diabetes 72164711.5236986477.9 Total Reportable Segments 8,5067,9676.81598,3477,9674.8 Other(2) 72(52)NM(3)3——— TOTAL $ 8,578$ 7,9158.4 %$ 162$ 8,347$ 7,9674.8 % (1) The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. (2) Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. (3) Not meaningful (NM) (4) The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. (5) The three months ended July 25, 2025 includes $231 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $52 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $38 million of inorganic revenue related to the transition activity noted in (2). MEDTRONIC PLC U.S. REVENUE(1)(2) (Unaudited) FIRST QUARTERREPORTEDORGANIC (in millions) FY26FY25GrowthFY26FY25Growth Cardiovascular $ 1,479$ 1,4035.5 %$ 1,479$ 1,4035.5 % Cardiac Rhythm & Heart Failure 8347668.98347668.9 Structural Heart & Aortic 3713680.83713680.8 Coronary & Peripheral Vascular 2742682.12742682.1 Neuroscience 1,6241,5653.81,6241,5653.8 Cranial & Spinal Technologies 8908554.18908554.1 Specialty Therapies 393398(1.3)393398(1.3) Neuromodulation 3413129.43413129.4 Medical Surgical 8848810.48848810.4 Surgical & Endoscopy 622630(1.3)622630(1.3) Acute Care & Monitoring 2632514.52632514.5 Diabetes 2172150.92172150.9 Total Reportable Segments 4,2054,0643.54,2054,0643.5 Other(3) 20186.4——— TOTAL $ 4,224$ 4,0823.5 %$ 4,205$ 4,0643.5 % (1) U.S. includes the United States and U.S. territories. (2) The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. (3) Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested. MEDTRONIC PLC INTERNATIONAL REVENUE(1) (Unaudited) FIRST QUARTERREPORTEDORGANIC (in millions) FY26FY25GrowthCurrency Impact(4)FY26(5)FY25(5)Growth Cardiovascular $ 1,806$ 1,60412.6 %$ 68$ 1,737$ 1,6048.3 % Cardiac Rhythm & Heart Failure 87876914.2378427699.4 Structural Heart & Aortic 55848714.62253648710.1 Coronary & Peripheral Vascular 3693476.3103593473.4 Neuroscience 7927525.4277657521.7 Cranial & Spinal Technologies 3202929.7123092925.7 Specialty Therapies 309314(1.7)9301314(4.4) Neuromodulation 16314611.971561466.9 Medical Surgical 1,1991,1157.5401,1591,1154.0 Surgical & Endoscopy 9909158.3329589154.8 Acute Care & Monitoring 2092004.182012000.2 Diabetes 50443216.72348143211.4 Total Reportable Segments 4,3013,90310.21594,1423,9036.1 Other(2) 53(70)NM(3)3——— TOTAL $ 4,354$ 3,83213.6 %$ 162$ 4,142$ 3,9036.1 % (1) The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. (2) Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. (3) Not meaningful (NM) (4) The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. (5) The three months ended July 25, 2025 includes $212 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $70 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $19 million of inorganic revenue related to the transition activity noted in (2). MEDTRONIC PLC CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended (in millions, except per share data) July 25, 2025July 26, 2024 Net sales $ 8,578$ 7,915 Costs and expenses:Cost of products sold, excluding amortization of intangible assets 3,0012,761 Research and development expense 726676 Selling, general, and administrative expense 2,8062,655 Amortization of intangible assets 459414 Restructuring charges, net 4547 Certain litigation charges, net 2781 Other operating expense, net 701 Operating profit 1,4451,278 Other non-operating income, net (33)(157) Interest expense, net 176167 Income before income taxes 1,3021,268 Income tax provision 255220 Net income 1,0471,049 Net income attributable to noncontrolling interests (7)(6) Net income attributable to Medtronic $ 1,040$ 1,042 Basic earnings per share $ 0.81$ 0.81 Diluted earnings per share $ 0.81$ 0.80 Basic weighted average shares outstanding 1,281.61,293.3 Diluted weighted average shares outstanding 1,287.11,296.5The data in the schedule above has been intentionally rounded to the nearest million. MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) Three months ended July 25, 2025 (in millions, except per share data) Net SalesCost of Products SoldGross Margin PercentOperating ProfitOperating Profit PercentIncome Before Income TaxesNet Income attributable to MedtronicDiluted EPSEffective Tax Rate GAAP $ 8,578$ 3,00165.0 %$ 1,44516.8 %$ 1,302$ 1,040$ 0.8119.6 % Non-GAAP Adjustments:Amortization of intangible assets(2) ———4595.54593740.2918.5 Restructuring and associated costs(3) —(16)0.1670.867510.0422.4 Acquisition and divestiture-related items(4) —(7)—580.758480.0417.2 Certain litigation charges, net ———270.327210.0222.2 (Gain)/loss on minority investments(5) —————1131070.086.2 Other(6) (39)—(0.2)(39)(0.5)(39)(30)(0.02)20.5 Certain tax adjustments, net ——————160.01— Non-GAAP $ 8,539$ 2,97965.1 %$ 2,01623.6 %$ 1,987$ 1,626$ 1.2617.8 % Currency impact (159)(46)(0.1)(10)0.3— Currency Adjusted $ 8,380$ 2,93365.0 %$ 2,00623.9 %$ 1.26 Three months ended July 26, 2024 (in millions, except per share data) Net SalesCost of Products SoldGross Margin PercentOperating ProfitOperating Profit PercentIncome Before Income TaxesNet Income attributable to MedtronicDiluted EPSEffective Tax Rate GAAP $ 7,915$ 2,76165.1 %$ 1,27816.1 %$ 1,268$ 1,042$ 0.8017.4 % Non-GAAP Adjustments:Amortization of intangible assets ———4145.14143400.2618.1 Restructuring and associated costs(3) —(9)0.1620.862510.0419.4 Acquisition and divestiture-related items(4) —(10)0.1120.112110.018.3 Certain litigation charges, net ———811.081680.0516.0 (Gain)/loss on minority investments(5) —————(17)(17)(0.01)— Medical device regulations(7) —(11)0.1140.214110.0121.4 Other(6) 90—0.6901.190700.0522.2 Certain tax adjustments, net ——————170.01— Non-GAAP $ 8,004$ 2,73065.9 %$ 1,95324.4 %$ 1,925$ 1,592$ 1.2317.0 % See description of non-GAAP financial measures contained in the press release dated August 19, 2025. (1) The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum. (2) The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio. (3) The charges primarily relate to employee termination benefits and facility related and contract termination costs. (4) The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. For the three months ended July 25, 2025, exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System. (5) We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. (6) Reflects adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. (7) The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs. MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) Three months ended July 25, 2025 (in millions) Net SalesSG&A ExpenseSG&A Expense as a % of Net SalesR&D ExpenseR&D Expense as a % of Net SalesOther Operating (Income) Expense, netOther Operating (Inc.)/Exp., net as a % of Net SalesOther Non-Operating Income, net GAAP $ 8,578$ 2,80632.7 %$ 7268.5 %$ 700.8 %$ (33) Non-GAAP Adjustments:Restructuring and associated costs(2) —(5)—————— Acquisition and divestiture-related items(3) —(26)(0.2)——(25)(0.3)— Other(4) (39)——————— (Gain)/loss on minority investments(5) ———————(113) Non-GAAP $ 8,539$ 2,77532.5 %$ 7258.5 %$ 440.5 %$ (146) See description of non-GAAP financial measures contained in the press release dated August 19, 2025. (1) The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. (2) The charges primarily relate to employee termination benefits and facility related and contract termination costs. (3) The charges primarily include changes in fair value of contingent consideration and exit of business-related charges, which primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System. (4) Reflects adjustments to the Company's Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. (5) We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited) Three months ended (in millions) July 25, 2025July 26, 2024 Net cash provided by operating activities $ 1,088$ 986 Additions to property, plant, and equipment (504)(520) Free Cash Flow(2) $ 584$ 466 See description of non-GAAP financial measures contained in the press release dated August 19, 2025. (1) The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. (2) Free cash flow represents operating cash flows less property, plant, and equipment additions. MEDTRONIC PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended (in millions) July 25, 2025July 26, 2024 Operating Activities:Net income $ 1,047$ 1,049 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 748662 Provision for credit losses 2818 Deferred income taxes 16788 Stock-based compensation 8683 Other, net 159(9) Change in operating assets and liabilities, net of acquisitions and divestitures: Accounts receivable, net 288110 Inventories (373)(217) Accounts payable and accrued liabilities (598)(604) Other operating assets and liabilities (464)(194) Net cash provided by operating activities 1,088986 Investing Activities:Additions to property, plant, and equipment (504)(520) Purchases of investments (2,100)(1,879) Sales and maturities of investments 2,0102,157 Other investing activities, net (125)(17) Net cash used in investing activities (719)(259) Financing Activities:Change in current debt obligations, net 649(624) Issuance of long-term debt —3,209 Payments on long-term debt (1,162)— Dividends to shareholders (910)(898) Issuance of ordinary shares 9589 Repurchase of ordinary shares (123)(2,492) Other financing activities, net 70(15) Net cash used in financing activities (1,381)(731) Effect of exchange rate changes on cash and cash equivalents 6731 Net change in cash and cash equivalents (945)27 Cash and cash equivalents at beginning of period 2,2181,284 Cash and cash equivalents at end of period $ 1,273$ 1,311 Supplemental Cash Flow InformationCash paid for: Income taxes $ 402$ 394 Interest 81119The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. 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Associated Press
33 minutes ago
- Associated Press
STELLUS CAPITAL MANAGEMENT, LLC PROVIDES UNITRANCHE FINANCING IN SUPPORT OF RALLYDAY PARTNERS' INVESTMENT IN ELDER CARE HOMECARE
HOUSTON, Aug. 19, 2025 /PRNewswire/ -- Stellus Capital Management, LLC ('Stellus') announced today that its affiliates provided senior debt financing and an equity co-investment in support of Rallyday Partners' ('Rallyday') investment in Elder Care Homecare ('Elder Care'), a premium senior home care agency serving New York, New Jersey, Connecticut, and Massachusetts. Established in 2008, Elder Care provides a suite of offerings, including personal care, companionship, skilled nursing, memory care, and rehabilitation, helping seniors thrive at home. Elder Care leverages highly trained caregivers, robust clinical oversight, and a personalized approach to deliver best-in-class solutions for every family it serves. Frank A. Corvino, Managing Partner at Rallyday, said, 'We are thrilled to partner with Elder Care, a team driven by deep empathy and operational excellence at every level. Their devotion to supporting seniors and their families distinguishes them as true leaders in the home care sector', adding 'We are grateful for the partnership with Stellus on this exciting opportunity and look forward to their continued support as Elder Care continues to grow its footprint. The Stellus team was thoughtful and efficient throughout the entire financing process.' John Sievers, Managing Director at Stellus, added, 'Elder Care has established a reputation as a premiere home care agency in the Northeast given its commitment to helping seniors and their families navigate the aging journey with the highest quality of care. We are excited to partner with Rallyday and the Elder Care management team on their ongoing success and believe Elder Care's best-in-class service offering is well positioned to meet increased demand from seniors and their preference to receive superior care in the comfort of their own home.' View original content to download multimedia: SOURCE Stellus Capital Management, LLC


Bloomberg
33 minutes ago
- Bloomberg
A $50 Billion Slush Fund Won't Save Rural Hospitals
Republicans' 'Big, Beautiful Bill' might not have passed absent an 11th-hour provision. Worried that cutting almost $1 trillion from Medicaid might hurt rural hospitals, some lawmakers demanded a special subsidy to keep them afloat. What resulted was something of a slush fund. The 'rural hospital transformation program' allocates $50 billion toward state grants. Its requirements to participate are broad, to say the least. Half the funds will be given to states that submit a plan to 'transform' rural health care. The rest will be disbursed at the administration's discretion. Perplexingly, there's no requirement that grants actually go to rural hospitals.