Export Medronic Catheter

Introduction

Medtronic, Inc, remains the world leader in medical technology and it continues to provide lifelong solutions for people with chronic disease. Medtronic is consistent with the diversification objective of the SMIP portfolio since it currently is one out of two stocks owned by the portfolio that are part of the healthcare industry, but belongs to a different sector than its similar stock, Caremark. Medtronic remains a good investment for the portfolio because of various reasons. The company has been increasing its dividend payments since the portfolio purchased the stock in 2001. Moreover, as the aging boomers' need for healthcare services and medical technology demand increases, Medtronic should experience a higher demand for its products, especially in the United States. Furthermore, the US Medicare Center recently proposed expanding their coverage of carotid artery stenting procedures to prevent strokes, which will benefit Medtronic because more of the company's products will be available to low-income families in the United States.

Analysis

Products

Medtronic is the global leader in medical technology, alleviating pain, restoring health and extending life for millions of people around the world. Every year, Medtronic provides medical professionals with products and therapies to help improve the lives of nearly 6 million patients. Primary products include those for heart and vascular disease, neurological disorders, chronic pain, spinal disorders, diabetes, urologic and digestive system disorders, and ear, nose and throat disorders. Medtronic serves physicians, clinicians and patients in more than 120 countries. The company has research, manufacturing, education and sales facilities around the world and it employs 36,000 people worldwide.

Operating Segments

Medtronic currently maintains seven operating segments. Each of the company's operating segments has similar economic characteristics, technology, manufacturing process, customers, distribution and marketing strategies, regulatory environments, and shared infrastructure. Revenues are estimated to be sustainable since they are generated by the core business of the company, medical technology. They are sustainable because they are not generated by an event that is not probable to occur again in the future. The reasoning is that people will continue to age and as medical technology advances, this aging population will need such medical developments to improve their way of living. The company's cardiac rhythm disease segment continues to be the division that generates most of the revenues, which as the company states in the 2006 annual report the segments will continue to grow and play an important role in the research and development department of the company.

Distribution and Selling

The main sources of cash for Medtronic, Inc is the distribution and selling of its medical technologies inventories. As a medical technology company that is dedicated solely to the supply of medical personal devices to improve health, Medtronic, Inc is obtaining cash mainly through its distribution and selling of its medical technologies inventories to more than 120 countries around the world. In the 2006 fiscal year, the main usage of cash was from the investing activities of the company. The company's purchase of marketable securities increased considerably form the previous year, from ...