Medtronic CFO: CRM market has a new baseline

March 15, 2013 by Brian Johnson

Medtronic CFO Gary Ellis tells investors that the CRM market has stabilized, but the industry faces a new baseline of flat to low single-digit growth in established markets.


The U.S. market for pacemakers and implantable cardioverter-defibrillators remains tepid and unlikely to return to previous levels of growth, according to Medtronic (NYSE:MDT) CFO Gary Ellis.

Ellis, speaking at the Barclays Global Healthcare Conference, told investors that he expects the CRM industry to see single-digit growth across all markets, driven mostly by business outside the U.S.

"The U.S. and some of the developed markets will kind of be in flat to maybe just up a few dips in general," he said. "But the emerging markets will then kind of continue to drive a couple of percentage points of growth in general," he said.

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Ellis called the current market conditions for CRM a "big improvement" over the performance of the industry over the past 2 years, when stagnant to declining markets weighed down many of the largest medical device makers, including Medtronic arch-rivals St. Jude Medical (NYSE:STJ) and Boston Scientific (NYSE:BSX).