Health Care Reform,Part 2:Medtronic Reacts

Under the new health care reform law,Medtronic will have to pay an excise tax of 150-200 million dollars a year,according to CEO Bill Hawkins.They will slow down expense growth to accomodate it.Although there are some good things in the bill,such as the expansion of coverage to more citizens,it will have an impact on research and development-particularly on the smaller companies.It will even impact Medtronic's R&D.It's hard to measure just how much that impact will be,Mr.Hawkins said.
Mr.Hawkins mentioned a recent Medtronic innovation that will improve outcomes and lower costs.It is a replacement heart valve inside of a stent.The device is inserted on a catheter and pushed through the leg to where the old valve is.It is now available outside the U.S.Medtronic hopes to begin U.S. studies on it in the second half of 2010.
Based in Minneapolis,Minnesota,Medtronic operates exclusively in the medical appliances and equipment industry.The NYSE-listed firm employs 37,665 and is active in more than 120 countries.In recent years,it has aggressively sought out acquisitions to augment its product portfolio.Shares of Medtronic were up this morning in early European trading.

Health Uncle:Medtronic Manages Diabetes

Medtronic is deriving a good part of its growth from insulin pumps and blood glucose monitors,says CEO Bill Hawkins.It gets 10% of its topline growth from diabetes products.Ever more sophisticated devices are being developed to combat the chronic disease.Medtronic has been increasing its spending on research and development by over 70% for the past three years.In consequence,they're on the path of closing the loop with diabetes,Mr.Hawkins believes.
Bill Hawkins described a number of the company's diabetes products,such as a sensor you put on your skin for several days that continuously monitors your condition.They're making continuous insulin pumps,and also a sensor that turns the pump off if blood sugar gets too low.Medtronic is working on a pump patch for the abdomen that communicates to a handheld device.They are working toward an artificial pancreas,Mr.Hawkins revealed.Groups of pancreatic cells,the islets of Langerhans,named for 19th century German histologist Paul Langerhans,produce the hormone insulin,which regulates the body's use of carbohydrates.Diabetes is a disruption of this insulin production in the pancreas.