Jan 12 (Reuters) - Medtronic has "significant firepower" to pursue acquisitions as the medical device maker evaluates opportunities to expand its portfolio, executives said at a major industry conference that kicked off on Monday in San Francisco.
The medical device maker has been eyeing tuck-in deals as it seeks to diversify its portfolio, particularly in cardiology and neuroscience, with CEO Geoff Martha in November saying that they would prefer companies in "early stage or close to market."
The company's balance sheet gives it flexibility to execute a "meaningful number" of transactions without financial strain, Chief Financial Officer Thierry Piéton said at the J.P. Morgan healthcare conference on Monday.
"What's changing versus the last few years is coming back to doing more M&A," he said, adding that Medtronic's dividend policy remains unchanged.
Medtronic, which makes devices ranging from pacemakers to insulin pumps, reported a 3.7% rise in revenue to $33.6 billion in fiscal 2025.
The company is targeting deals in the low- to mid-single-digit billions of dollars, choosing targets that will supplement its internal R&D efforts, Martha said on Monday. The company has set up a new committee at the board level to move faster on deals, he added.
The executives said Medtronic is focused on two themes, expanding in areas where it already competes and acquiring enabling technologies for procedures such as cardiac ablation and surgical robotics.
The company has spent recent years improving operations by divesting non-core units and plans to spin off its diabetes business as MiniMed Group through a U.S. initial public offering following its struggles over the last few years.
It also added two new directors to its board last year after activist investor Elliott Investment Management emerged as one of its largest shareholders.
Medtronic now sees itself positioned to pursue strategic opportunities.
"We've earned the right to do these acquisition, and we've got the capacity, so we're going to step up," Piéton said.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Alan Barona and Leroy Leo)
latest_posts
- 1
German Cabinet advances bill to cut greenhouse emissions from fuels - 2Can scientists detect life without knowing what it looks like? Research using machine learning offers a new way
- 3EU states agree first step for Ukraine reparations fund
- 4Nick Reiner's defense attorney asks to be replaced, again delaying arraignment in connection with the stabbing deaths of his parents, Rob Reiner and Michele Singer Reiner
- 5FDA updates risk classification for voluntary shredded cheese recall
- What's changing about healthcare in 2026 — Medicare, Medicaid, ACA, premiums, and enrollment deadlines
- 'We were genuinely astonished': This moss survived 9 months outside the International Space Station and could still grow on Earth
- Astronomers detect black hole blasting winds at incredible speeds
- An 'explosion' of solo-agers are struggling with rising costs and little support: 'I'm flying without a net'
- Taste the World: Five Food sources That Have Dazzled Worldwide Palates
- My Enterprising Excursion: Building a Startup
- The capacity to understand people on a profound level: Exploring Life's Intricacies
- Strengthening through Wellness: Individual Preparation Achievement
- 2026 Golden Globes: How to watch, start time, TV channel, full nominee list and more
