Wednesday, January 11, 2012 12:28 PM
Ishrak Looking ‘Out’ for Medtronic
Medtronic Inc. is looking for acquisitions abroad with about $2 billion to spend.
With about $2 billion to spend, world’s med-tech leader Medtronic Inc. is looking for acquisitions abroad. This was one of the announcements made by Omar Ishrak, CEO, at the J.P.Morgan Healthcare Conference held in San Francisco earlier this week.
“Medtronic generates about $4 billion annually in free cash, and uses about half of it for dividends and to buy back shares…The remaining money is available for acquisitions,” Ishrak said.
The CEO felt the company needed to have a far more disciplined approach to acquisitions and is targeting purchases in emerging markets in which Medtronic can aim for a leadership position.
Friday, January 13, 2012 by
Once again, Medtronic is wasting its cash on over-priced, over-promising, and under-delivering technologies, and wasting its human capital through layoffs to pay for them, rather than investing in much, much lower cost, internal R&D braintrust. It's amazing how in less than a year, the new CEO threw out the "disciplined approach" he touted. So much for the "savior" of the medical device industry.
Paul Stein
Post your comments about this article or questions for the author here