uploads/2018/06/Diabetes.png

MDT’s Diabetes Business Could Significantly Boost Its Revenue

By

Updated

Diabetes segment’s revenue trends

In fiscal Q4 2018, Medtronic’s (MDT) Diabetes segment generated revenue of $645 million compared to $512 million in fiscal 2017, which reflected a ~26% rise YoY (year-over-year).

The segment reported net revenue of $2.1 billion in fiscal 2018 compared to $1.9 billion in fiscal 2017, an ~11% YoY rise.

The solid demand for the MiniMed 670G hybrid closed-loop insulin primarily propelled the revenue rise of Medtronic’s Diabetes segment’s revenue. Presently, Medtronic estimates that there are more than 70,000 trained active 670G users.

Medtronic has also expanded the MiniMed 670G in Japan and is focused on its international expansion.

Regional revenue trends

In fiscal Q4 2018 in US markets and non-US developed and emerging markets, Medtronic’s Diabetes segment generated revenues of $370 million, $218 million, and $57 million, respectively, compared to $303 million, $168 million, and $41 million, respectively, in fiscal Q4 2017—rises of ~22%, ~30%, and ~39%, respectively, YoY.

In fiscal 2018, in US markets and non-US developed and emerging markets, Medtronic’s Diabetes segment generated revenues of $1.2 billion, $739 million, and $175 million, respectively, compared to $1.1 billion, $625 million, and $154 million, respectively, in fiscal 2017.

Recent developments

In June, Medtronic announced that it had made available its updated iPro2 myLog app with its FoodPrint report. This app delivers a simple way for clinics to import patients’ logged data during their iPro2 continuous glucose monitoring.

The updated iPro2 app is now powered with Nutrino, an AI-powered personalized nutrition analysis platform utilized in iPro2 continuous glucose-monitoring evaluation.

Medtronic’s glucose monitoring systems peers Dexcom (DXCM), Insulet Corporation (PODD), and Johnson & Johnson (JNJ) reported revenues of $184 million, $123 million, and $20 billion, respectively, in Q1 2018.

More From Market Realist