Latest news with #medtechgiant
Yahoo
a day ago
- Business
- Yahoo
Medtronic lifts FY26 outlook amid 50% growth in cardiac ablation
Medtronic has raised its fiscal year 2026 (FY26) profit outlook to 4.5%, up from a previous target of 4%, amid strong growth in its cardiovascular portfolio due to the ongoing adoption of its pulsed-field ablation (PFA) systems and lower than expect tariff impacts. The Ireland-headquartered medtech giant's total sales reached $8.57bn in Q1 FY26, corresponding to an 8.4% rise on Q1 of FY25, which came in at $7.9bn. Medtronic now expects adjusted profits for FY26 to fall between $5.60 and $5.66 per share, up from $5.50 to $5.60 previously. Barring speciality therapies within its neuroscience portfolio, Medtronic achieved single-digit growth across all of its product lines. Cardiovascular was the company's strongest performing segment in FY26, with worldwide profits of $3.28bn, reflecting growth of 9.3% from around $3bn compared to the same period in the previous fiscal year. Cardiac Rhythm & Heart Failure witnessed the highest growth within Medtronic's cardiovascular portfolio, climbing to around $1.7bn, denoting an 11.5% rise on $1.53bn in Q1 of FY25. The uplift reflects the ongoing adoption of Medtronic's Affera mapping and ablation system featuring the Sphere-9 Catheter, and PulseSelect PFA for the treatment of atrial fibrillation (AFib). The systems gained US Food and Drug Administration (FDA) clearance in December 2023 and October 2024, respectively. Medtronic CEO Jeff Martha revealed in a post-earnings conference call that in Q1 of FY26, the company reached nearly 50% growth in cardiac ablation solutions on the rollout of its PFA systems. 'This performance is reflective of our execution capabilities, and we're excited that our growth momentum in this pivotal area is only just beginning,' Martha said. 'Looking this past quarter, I've witnessed Fara [Boston Scientific's Farapulse PFA system] and our competitors in action in several ablation cases, and I can tell you firsthand that the advantages that we're bringing to the market in terms of procedure time and ease of use are truly differentiated.' Martha added that physician feedback and utilisation levels of Medtronic's PFA equipment had been 'phenomenal', stating that the company now has 'more conviction than ever' that it has the right technology and product pipeline in place to progress towards a leadership position in cardiac ablation. In July, Boston Scientific's Q2 2025 financials revealed even stronger performance in its cardiovascular unit, with profits of $3.34bn, representing a 26.8% increase on the unit's Q2 2024 performance at $2.63bn. According to GlobalData analysis, months after separate approvals for Farapulse and PulseSelect, physicians in the US had already started displaying a much stronger preference for Boston's product over Medtronic's. Johnson and Johnson (J&J) received FDA approval for its Varipulse PFA system in 2024. In its Q2 2025 financials, J&J reported a 7.3% rise in its Medtech unit in Q2 2024 to around $8.54bn. Medtronic also lifted its FY2026 outlook due to a lower-than-expected impact from US President Donald Trump's tariffs. The company has revised the assumed impact of tariffs to $185m for the fiscal year, down from $200m to $350m previously. The move aligns with other recent tariff impacted revenue trims by companies including Zimmer Biomet and Philips. "Medtronic lifts FY26 outlook amid 50% growth in cardiac ablation" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
3 days ago
- Business
- Yahoo
Philips sharpens AI ultrasound push with $150m manufacturing investment
Philips is investing $150m into expanding a pair of US facilities that manufacture its AI-based ultrasound systems and software. Complementing its existing annual $900m US R&D spend, the medtech giant said the funds' allocation towards expanding its Pennsylvania facility that produces ultrasound systems would support its ongoing growth in the US. According to the company, the site currently manufactures transducers but will also work on the configuration of software used in Philips' ultrasound systems in areas such as cardiovascular and maternal care once the expansion is complete. Philips is also allocating a portion of the funds towards expanding its image-guided therapy facility in Minnesota. The Pennsylvania site expansion is expected to add 24,000ft² of manufacturing space and 40,000ft² of storage. The Minnesota site expansion primarily includes the addition of a new medtech training centre, for which the dimensions were unspecified. According to a GlobalData market model, Philips held a 17% share in the US ultrasound systems market in 2024. The figure puts the company in third place, behind rivals GE Healthcare in poll position and Siemens in second place, with US market share of 34% and 29.4%, respectively. Stating that the manufacturing facility expansions reflect Philips' 'deep commitment' to the US, Philips North America chief region leader Jeff DiLullo said: 'Increasing our manufacturing and R&D capabilities will create jobs and accelerate our ability to deliver better care for more people with innovative AI-enabled solutions.' The facility expansions likely also reflect Philips' efforts to future-proof and insulate its operations from the unpredictable nature of US President Donald Trump's tariffs. In particular, his imposition of tariffs on China has fluctuated dramatically throughout the year. Philips has a number of manufacturing sites in the nation, including R&D innovation centres in Shanghai, Suzhou, and Shenzhen. The Dutch business is not the only medtech company to bolster US manufacturing amid tariffs – Thermo Fisher outlaid $2bn worth of investment in April 2025. In an earnings call with investors following the release of its Q2 2025 financials in July, Philips revealed it was revising its expected China-related tariff impacts for 2025 to between €150m-€200m ($175.2m-$233.6m), down from €250m-€300m ($292.1m-$350.5m) previously. Philips CFO Charlotte Hanneman said work on its planned tariff mitigation actions was 'well underway' and on track: 'We've made solid progress on midterm initiatives, including supplier network and manufacturing location optimisation.' According to GlobalData analysis, the use of AI across healthcare is rapidly advancing, with the market projected to reach a $19bn valuation by 2027. Radiology, including ultrasound, has emerged as one of AI's key application areas – chiefly as a way to drive efficiencies and glean insights that human image evaluation could miss. "Philips sharpens AI ultrasound push with $150m manufacturing investment" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
