Omar Ishrak Striving to Restore Growth at Medtronic (written by Lauren Uzdienski @ HealthPointCapital)
On Medtronic's earnings call, new CEO Omar Ishrak announced that his top priority was restoring growth to the company, which he said was achievable by improving execution, optimizing innovation and accelerating globalization.
Addressing each initiative individually, Mr. Ishrak said he would pursue "operating rigor" by increasing accountability and follow-through at all levels, which will produce operating efficiencies. The company is also working to optimize their R&D program by better selecting and prioritizing investments as well as addressing customer economies in marketing. The company says they will use data to demonstrate to customers how new technology will improve overall profitability, a key benefit as hospitals face pressure to cut costs. Finally, the company will grow sales of existing therapies by expanding their global footprint. China is clearly a top priority, as Medtronic announced plans earlier this month to double their Chinese workforce by 2016.
Mr. Ishrak inherited a number of issues from the prior management, including flagging sales an...
