In GM’s earnings video, he makes EM sound friendly and benevolent. What is Elliot Management actually thinking about Medtronic and changes that need to be made?
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@er unfortunately the “put patients first” has become a catchy marketing slogan but quality issues persist, so it seems superficial
Synchromed is an interesting product. I think the only reason they keep it is to compliment SCS in the interventional pain tool box. 30 years and only 3 approved dr-gs...probably time to unload to a Pharma company that sees the value in bypassing the blood-brain barrier like Biogen.
Renal denervation was lucky to even get FDA approval. The medical advisory board ruled against it. It's never been proven effective in patients with treatment-resistant hypertension. Ultrasound sound ablation seems to be more effective based on pivotal clinical trial data. I think RDN could be useful in a small subset of patients but is unlikely to be a huge money maker...but CMS will weigh in soon.
Adding to this. Really focus on patient first and invest in quality.
Flush the tu-ds as quickly as possible. Then hire a master plumber to rebuild the sewer pipes.
1) Assess profitability and growth in every category
2) Clump together low profit and get rid of it. Everything is for Sale. surgical heart valves, peripheral, implanted infusion pump
3) Ki-l the projects. Probably the robot and every subscription service Medtronic tries
4) Stop trying to "Walmart" supply chain. That hasn't worked for 15 years
5) Truly fund only some R&D and acquisition integration.
Please pay me $9000 for those suggestions.
Watch the video again and pay attention to Geoff's micro reactions. He obviously is not enthused about the situation.
Robotics could be scraped .... IMHO .... Let see tho.
Bet they keep the cash cows and dump the products not really producing proof. Surgical comes to my mind quickly, IDK
Elliott takes a different approach for each company they go after, but the general theme is getting companies to streamline their business and focus on core competencies. So, they probably like the general direction but think mgmt should tighten things up around the products that make money today or have proven growth potential.
Accountability is coming!
Look at what Elliott did with Southwest Airlines to understand what happens with Medtronic….GM is on thin ice.
They think Medtronic could achieve more with better leadership, thats the bottom line, so they are coming in to lead Geoff around by the nose to get better results. They aren't here for the mission or because they like MN summers.