Medtronic (Minneapolis, MN) in undergoing significant restructuring in its spinal business. As revenues at the company continue to falter, Medtronic will cut 230 jobs. In other unwelcome news, FDA regulators issued Class I recall status for the company’s deep-brain electrical stimulation systems.
Medtronic is shedding jobs in response to a downward trend in its spinal business. In its last quarter, the company’s spinal division dropped four percent to $753 million. In part, this decrease was due to lower balloon kyphoplasty and bone morphogenetic protein sales. As of now, 60 of the 230 job cuts took place at the company’s spinal headquarters in Memphis, TN. The rest of the cuts took place overseas.
The company is also facing difficulties with its deep-brain stimulators. In February of tihs year, Medtronic warned that leads for the company's deep-brain stimulators could be damaged by the included cap during use. The FDA issued a Class I recall status for the deep-brain stimulators, stating that patients may not receive intended therapy because of the damaged leads. The company is currently pursuing manufacturing changes to correct the problem.
Medtronic’s neurostimulation business is faring better than its spinal business. The company’s neurostimulation division increased seven percent to $447 million for the latest quarter. In part, this increase was driven by sales of InterStim, an incontinence device, and Activate, a deep-brain stimulator.
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