Medtronic's maneuvers may signal long-term struggles for industry
Wall Street analysts warn that Medtronic's moves into disease management signal "challenging times ahead for device manufacturers."
When Medtronic (NYSE:MDT) announced that it paid $200 million in cash for chronic disease management firm Cardiocom the medical device giant said the acquisition was indicative of a broader vision for the company's future, but Wall Street analysts are warning that it may also suggest "challenging times ahead" for the device industry.
In a company statement and in a conference call earlier this month Medtronic CEO Omar Ishrak said the company could reach a much larger swath of patients by widening its scope to include more healthcare services and solutions, starting with heart failure patients. Ishrak also acknowledged that Medtronic needs some new moves to keep up with new trends in healthcare in the U.S. and abroad.