MDT
Medtronic Inc.
Healthcare
06/27/2014
Presented
| Date | 06/24/2014 |
| Price | $64.07 |
| Market Cap | $63.80B |
| Ent Value | $61.48B |
| P/E Ratio | 25.2x |
| Book Value | $20.50 |
| Div Yield | 1.6% |
| Shares O/S | 995.76M |
| Ave Daily Vol | 6,560,000 |
| Short Int | 1.06% |
Current
| Price | $89.84 |
| Market Cap | $115.22B |
| Medtronic, Inc. manufactures and sells device-based medical therapies worldwide. It operates through three segments: Cardiac and Vascular Group, Restorative Therapies Group, and Diabetes Group. The Cardiac and Vascular Group’s products include pacemakers; insertable cardiac monitors; implantable defibrillators; leads and delivery systems; ablation products; electrophysiology catheters; products for the treatment of atrial fibrillation; information systems for the management of patients with cardiac rhythm disease management devices; products to reduce surgical site infections; coronary and peripheral stents and related delivery systems; therapies for uncontrolled hypertension; endovascular stent graft systems; heart valve replacement technologies; cardiac tissue ablation systems; and open heart and coronary bypass grafting surgical products. The Restorative Therapies Group offers products for various areas of the spine; bone graft substitutes; biologic products; trauma, implantable neurostimulation therapies, and drug delivery systems for the treatment of chronic pain, movement disorders, obsessive-compulsive disorder, overactive bladder, urinary retention, fecal incontinence, and gastroparesis; products to treat conditions of the ear, nose, and throat; and systems that incorporate advanced energy surgical instruments. It also manufactures and sells image-guided surgery and intra-operative imaging systems. The Diabetes Group’s products include insulin pumps; continuous glucose monitoring systems; insulin pump consumables; and Web-based therapy management software solutions. The company serves hospitals, physicians, clinicians, and patients in approximately 140 countries. Medtronic, Inc. was founded in 1949 and is headquartered in Minneapolis, Minnesota. |
Publicly traded companies mentioned herein: Medtronic, Inc. (MDT), Covidien plc (COV), Stryker (SYK), Zimmer (ZBH)
Highlights
The presenter is long shares of Medtronic (MDT) and anticipates that the deal with Covidien (COV) will likely close by year’s end. While there are no guarantees there won’t be delays and it’s possible the deal could fall through, the presenter sees these as lower probability outcomes. He also noted that the deal is interesting not because of the marginally lower tax rate MDT will end up with (which has been a main driver/ benefit of most of the spec pharma inversions to-date), but rather because they are the most diversified medical technology/ device company in the world and this deal opens the door for them to deploy 100% of their capital worldwide. He sees this as “wave two of the inversion story.”
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.