Medtronic, Inc. F1Q09 (Qtr End 07/25/08) Earnings Call Transcript

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2008-08-19 10:15:25.0

Tags: Medtronic Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Tao Levy – Deutsche Bank.

Tao Levy – Deutsche Bank

If you could first touch on the US ICD market what’s the latest that you’re seeing are we behind any issues with Fidelus and do you expect going forward that the US portion to improve in growth. My second question is on the pacemaker on the MRI safe product, I think there’s some data that’s going to be coming out later on this month any expectation on what that data is going to show?

Bill Hawkins

Let me just make a couple comments about the ICD market. As I said in my remarks we see the market growing in the mid to high single digits as we had discussed at the June analyst meeting and with the US being at the low single digits and OUS being in the low double digits. In terms of our position, we’re pleased with the progress that we’re making; as I said we didn’t have the Vision 3D and we did launch the Attain StarFix which we think is making some good traction.

We will be launching the Vision 3D platform this quarter. We feel very confident about our position in the ICD market. We think the market is stable and growing in the range that we indicated before.

On the Pacemaker side, we will be presenting some data at the ESC on the SureScan MRI technology. We’re excited about this; we think that this will really differentiate our pacemakers in the marketplace when we launch it outside the US by the end of the calendar year and as I said 2010 here in the US.

Tao Levy – Deutsche Bank

The single Quattro, did that get approved or is that still?

Bill Hawkins

No, we’re still going through qualifications on that and we’ll launch that when we’re ready to launch it when it meets our internal standards.

Operator

Your next question comes from Matthew Dodds – Citigroup.

Matthew Dodds – Citigroup

On the gross margin you said Kyphon was 50 basis points year over year increase but if you look at the last couple quarters you’ve steadily marched up there as well. Can you tell us a little more detail how much of that’s foreign exchange versus everything else? For the Resolute when can we see the start of the US trial?

Gary Ellis

As I indicated in my comments, there are a lot of factors driving the gross margin improvement that we’ve seen not only versus the prior year obviously but even as you indicated over the last few quarters. You’re right; the benefit of Kyphon has been in there the last few quarters. Obviously it wasn’t in there in the prior year and that’s why we mention it versus the prior year. It has been in the last few quarters.

 

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