Medtronic: A Timeline of Events
1949:
* Earl Bakken and Palmer Hermundslie found Medtronic in a Minneapolis garage as a medical equipment repair service, initially focused on electrocardiogram machines and lab instruments.
Early 1950s:
* Medtronic operates on tight margins, with one month reportedly earning only $8 in revenue.
* The "garage gang" perseveres, driven by a passion to help others.
* Bakken improvises and crafts over 100 custom devices for medical researchers, often using surplus parts. These include primitive defibrillators and cardiac monitors.
1957:
* A power blackout in Minneapolis on Halloween night causes pacemakers in a hospital to fail, tragically resulting in the death of one infant recovering from heart surgery.
* The following day, Dr. C. Walton Lillehei challenges Earl Bakken to create a battery-powered pacemaker.
* Bakken, inspired by a Popular Electronics article, develops a small, battery-operated, wearable pacemaker within a few weeks.
* Dr. Lillehei immediately uses Bakken's prototype on a child, successfully keeping their heart in rhythm. This marks the beginning of mobile cardiac pacing.
1958:
* News of the wearable pacemaker spreads rapidly, and hospitals begin placing orders.
* Medtronic, in partnership with Dr. William Chardack and engineer Wilson Greatbatch, introduces the first implantable pacemaker.
1960:
* Medtronic secures exclusive rights to manufacture the Chardack-Greatbatch implantable pacemaker, shifting its focus to developing and selling its own life-sustaining devices.
* Orders for implantable pacemakers pour in.
* Medtronic moves out of the garage into its first proper headquarters.
* A small sales force is hired to cover the United States and Canada.
* Faced with financial strain due to heavy R&D spending, Earl Bakken drafts the Medtronic Mission Statement, with the core tenet: "To contribute to human welfare by application of biomedical engineering to alleviate pain, restore health, and extend life."
* Bakken starts the annual Medtronic holiday party featuring patient testimonials.
Early 1960s:
* Medtronic expands its product line to include heart monitors, defibrillators, and other cardiac support devices.
* Annual sales climb to over $500,000 by 1962.
Late 1960s:
* Medtronic becomes the leader in cardiac rhythm management, refining pacemakers with improved battery life and reliability.
* The company begins exploring applications of electrical stimulation for other medical problems, prototyping early neuromodulators for pain management.
1970s:
* Medtronic experiences significant expansion, commanding around 35% of the global pacemaker market by the mid-70s.
* Annual sales surpass $100 million in 1975 and $200 million by 1979.
* In 1977, Medtronic is listed on the New York Stock Exchange.
* The company diversifies into diabetes care, neurosurgery, and orthopaedic/spinal therapy.
* Medtronic introduces the Medtronic-Hall mechanical heart valve (1977) and steroid-eluting cardiac leads.
* Acquisitions include Medical Data Systems (nuclear imaging equipment, 1978) and Energy Technology (lithium batteries, later Promeon).
* Earl Bakken steps down as president in 1974, becoming chairman of the board. He is succeeded by Thomas Holloran and then Dale Olseth as CEO.
* The Medtronic Foundation is established in 1979.
* The Bakken Society is founded in 1979 to recognise top scientists and engineers.
1980s:
* Medtronic continues to refine cardiac rhythm management with programmable pacemakers (Spectrax, 1981) and rate-responsive pacemakers (Activitrax, 1985).
* Acquisitions include Biotech (Italy) and Vitatron (Netherlands) in 1986, strengthening its position in rate-responsive pacing and Europe.
* Regional headquarters are established in Europe and Latin America, and manufacturing plants open internationally.
* Medtronic develops an implantable neurostimulator for chronic pain and collaborates on the world's first deep brain stimulation (DBS) system for movement disorders (1987).
* By the end of the decade, Medtronic has six primary business areas beyond pacemakers.
1985:
* Winston "Win" Wallin is hired as CEO.
1989:
* Earl Bakken retires as chairman of the board.
Early 1990s:
* Under Win Wallin's leadership (1985-1991), Medtronic's sales more than triple, exceeding $1 billion by 1991.
* Medtronic introduces its first implantable cardioverter-defibrillator (ICD) in 1993.
1991:
* William W. "Bill" George succeeds Win Wallin as CEO.
1990s:
* Under Bill George's leadership (1991-2001), Medtronic aggressively expands into new therapies through R&D and acquisitions.
* The company cultivates a highly engaged workforce and becomes Minnesota's most valuable company.
* Medtronic launches the Activa DBS device.
* The Spinal Modulation business is boosted by the acquisition of Sofamor Danek.
Early 2000s:
* Arthur "Art" Collins takes over from Bill George as CEO in 2001.
* Medtronic acquires MiniMed in 2001, entering the diabetes management field with insulin pumps.
* Revenues surge past $10 billion under Collins (2001-2007), fueled by major acquisitions like Sofamor Danek and MiniMed.
* Medtronic launches the industry’s first remote device monitoring system in 2002.
2007:
* Bill Hawkins assumes the CEO role (2007-2011).
* Medtronic faces a high-profile recall of its Sprint Fidelis heart device leads.
* Hawkins advances innovations like the first transcatheter heart valves.
2011:
* Omar Ishrak is appointed CEO – the first person of colour and first external hire to lead the company.
2010s:
* Under Omar Ishrak (2011-2020), Medtronic focuses on global expansion and efficiency.
* In 2015, Medtronic acquires Covidien for $42.9 billion, nearly doubling its size and broadening its offerings. The legal headquarters move to Ireland in a tax inversion.
* Medtronic introduces the Micra leadless pacemaker (2016) and the MiniMed 670G automated insulin dosing system (2016).
* The Infuse bone graft controversy leads to investigations and settlements.
* Acquisition of Mazor Robotics (spine surgery robotics, 2018).
* Medtronic becomes the market leader in TAVR (transcatheter aortic valve replacement) by 2019.
2020:
* Geoff Martha becomes CEO after Ishrak's retirement.
* Medtronic recalls around 322,000 MiniMed insulin pumps due to a safety issue.
* During the COVID-19 pandemic, Medtronic open-sources a ventilator design and significantly increases its own ventilator production.
* Launch of the MiniMed 780G system in Europe.
Early 2020s:
* Medtronic's Hugo™ Robotic Assisted Surgery (RAS) system performs its first patient procedures in Europe (2021).
* Acquisition of Intersect ENT (sinus implants, 2022).
* Medtronic faces global supply chain disruptions and inflationary pressures.
* The company undertakes cost-cutting and efficiency programs.
* Spinoff of the Renal Care Solutions business into Mozarc Medical (2023) and plans to separate the Patient Monitoring and Respiratory Interventions businesses.
* Medtronic reports its products touch over 74 million patients annually by 2023.
Future Outlook:
* Focus on integrating artificial intelligence and data science into products and services.
* Continued expansion of access to therapies in developing markets through frugal innovation.
* More collaboration and open innovation initiatives.
* Strategic investments in high-growth areas like cardiac ablation, structural heart, neuromodulation, and surgical robotics.
* Maintaining a culture of innovation and agility while upholding the core mission.
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