Reza Zahiri, PhD, MBA

𝐅𝐚𝐬𝐭𝐞𝐬𝐭 𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐌𝐞𝐝𝐢𝐜𝐚𝐥 𝐃𝐞𝐯𝐢𝐜𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬!

I previously wrote about the revenue of some of the top #medicaldevice companies over the past 15 years. On average the #revenue growth of these companies has been roughly 60% (compound annual growth rate of 4%). But the revenue #growth has not been the same for all these companies.

The following are some of the fastest-growing medical device companies by revenue

1.     Stryker
2.     BD
3.     Medtronic
4.     Fresenius Medical Care
5.     Siemens Healthineers
6.     Boston Scientific
 
Time will tell if these companies can maintain their #momentum.
 
𝐋𝐢𝐦𝐢𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐠𝐫𝐨𝐰𝐭𝐡 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬

Top-line growth is one of the key factors when it comes to the evaluation of the financial strength of a business, but it also has its own limitations. Revenue growth alone does not fully represent the company's performance, as it benefits from #acquisitions and suffers from #divestitures.

For the companies that are listed here, in some cases, the revenue growth has been organic while in other cases it has been achieved through major acquisitions. Acquisitions of #Varian by Siemens Healthineers for $16B, #Covidien by Medtronic for $43B, #Bard by BD for $24B, and #Sage, #WrightMedical, and #Vocera by Stryker for a total of $10B are all good examples of this. Additionally, some of these companies have strategically divested some of their businesses. GE Healthcare selling its #BioPharma to Danaher for $21B, and Philips divesting its Lighting and most of its #ConsumerLifestyle are all good examples of this.

To gain a deeper understanding of each of these companies, one must dive into their strategy, business model, product portfolio, global operations, and overall financial and economics.

Sources: MacroTrends, Google Finance, individual company financials

* For European companies like Philips and Siemens I used their revenue growth in Euros and avoided conversion to USD.

* For Philips I excluded the revenue from their lighting division and only included the revenue from Healthcare & Consumer Lifestyle. Philips divested 80% of its Consumer Lifestyle over the years.

* Views and ideas are my own. The content that I provide here is intended to be educational only and is not financial advice. I have personal investments in several public and private tech and medtech companies, but always encourage the readers to do their research.

𝐋𝐞𝐚𝐝𝐞𝐫𝐬 𝐰𝐡𝐨 𝐛𝐮𝐢𝐥𝐝 Medtronic

From 1949 when it was founded by Earl Bakken and his brother-in-law Palmer Hermundslie in a garage in Minneapolis as a medical equipment repair shop, to today, where it is the world’s largest medical device company with close to 100,000 employees in more than 150 countries, and valuation of over $100B, here is a look at CEOs of Medtronic from its inception to the present day:

1. 𝐄𝐚𝐫𝐥 𝐁𝐚𝐤𝐤𝐞𝐧 (1949-1985)

Earl Bakken was the co-founder and first CEO of Medtronic. He was a pioneer in medical technology. He transformed Medtronic from a repair shop to a billion-dollar business and set the foundation for Medtronic’s future in medical devices.

2. 𝐖𝐢𝐧𝐬𝐭𝐨𝐧 (𝐖𝐢𝐧) 𝐖𝐚𝐥𝐥𝐢𝐧 (1985-1991)

Win Wallin became CEO in 1991, after serving as president and COO. He continued the strategy of growth and strengthened the company's global presence, increasing the company's scale and reach in the medical technology market. Win turned Medtronic into a multi-billion-dollar business.

3. Bill George (1991-2002)

Bill George succeeded Winston Wallin as CEO in 1991. He led the company through a period of rapid growth and accelerated innovation, expanding into new markets. During his time Medtronic turned into a truly global organization with a valuation of over $60B. Bill retired as CEO in 2002. He is currently a professor at Harvard Business School where he talks about #business and #leadership.

4. 𝐀𝐫𝐭𝐡𝐮𝐫 (𝐀𝐫𝐭) 𝐂𝐨𝐥𝐥𝐢𝐧𝐬 (2002-2007)

Art Collins became CEO in 2002, after serving as president and COO. He led the company through a challenging period. He also continued the strategy of growth and diversification, acquiring several companies.

5. William A. Hawkins (2008-2011)

Bill Hawkins took over as CEO in 2008. He focused on enhancing the company's core businesses. Hawkins focused on integrating and streamlining operations following several large acquisitions.

6. Omar Ishrak (2011-2020)

Omar Ishrak became CEO in 2011, after serving as the president and CEO of GE Healthcare Systems. Omar Ishrak is credited with transforming Medtronic into a truly global corporation, focusing on expanding access to healthcare across new geographic regions and emphasizing value-based healthcare solutions. He also led the largest #acquisition in #medtech history, namely Covidien. During his time Medtronic reached a valuation of $150B. Omar retired as CEO in 2020. He also served as the chairman of Intel Corporation from 2020 to 2023.

7. Geoff Martha (2020-present)

Taking the helm during a global pandemic, Geoff Martha has continued to lead Medtronic towards a future centred on patient access and sustainability.

𝐒𝐨 𝐰𝐡𝐨 𝐛𝐮𝐢𝐥𝐝 𝐌𝐞𝐝𝐭𝐫𝐨𝐧𝐢𝐜?

As Omar Ishrak once said “The success of Medtronic was driven by its wonderful, passionate, and committed global team. The one thing we all shared was our common desire and commitment to make a difference.”

#medtronic #valuecreation #marketcap #growth