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Medtronic en route to recovery

Medical devices constitute a large and competitive market, but the Dublin-headquartered group arguably has the scale and investment power to fight its corner
Medtronic en route to recovery
  • The New York-quoted company specialises in medical devices across a range of areas, from cardiac health to diabetes
  • Under new management, it has restructured with a greater focus on innovation and R&D
Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
  • Encouraging growth targets
  • Diversified across multiple specialisms and regions
  • Demand buoyed by ageing populations
  • Fund managers' favourite
Bear points
  • Remains vulnerable to pandemic-induced disruption
  • Significant competition in medical devices and robotic surgery

As Covid-19 swept across the globe during spring last year, hospitals were forced to redirect their resources towards the front line of the pandemic. The upshot was that many non-urgent treatments were postponed or cancelled – creating enormous waiting lists. In England alone, 5.1m people were waiting to start treatment at the end of April 2021 – something the British Medical Association called the "strongest indicator yet that the immense backlog of care is dangerously close to crippling our health service”.

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