Medtronic indicates it’s considering selling its spine unit (OrthoSpineNews)
Another quarter of weak sales in Medtronic's division for spine devices stirred talk Tuesday about whether the Fridley-based manufacturer eventually might sell the business unit.
For months, stock analysts have questioned whether Medtronic should divest itself of the Memphis-based division for spine surgery devices, which generates about 20 percent of the company's revenue.
Revenue from that unit has fallen in recent quarters due to increased competition, insurance company limits on spine surgeries and questions about the safety and effectiveness of a key Medtronic product called Infuse.
During a conference call Tuesday morning to discuss third-quarter financial results, Medtronic chief executive Omar Ishrak signaled that a dramatic change of some sort is needed in the spine business.
"While we continue to believe in the potential of this market, we urgently need to see meaningful signs of improvement from our current initiatives," said Ishrak, who became Medtronic's chief executive last year. "If we do not, we will need to reassess our strategy and approach for this business."
Such a reassessment could l...
