Medtronic 2015 Annual Report Download - page 55

Coronary & Structural Heart net sales for fiscal year 2015 were $3.038 billion, an increase of 3 percent compared to the prior
fiscal year. The increase in Coronary & Structural Heart net sales was driven by ongoing success of the CoreValve transcatheter
aortic heart valve in the U.S., the launch of the CoreValve Evolute R recapturable system in international markets, and the
international launch of the Resolute Onyx drug-eluting stent in November 2014. Net sales were partially offset by unfavorable
foreign currency translation and continued pricing pressures in the U.S., Western Europe, Japan, and India in our Coronary
business.
Aortic & Peripheral Vascular net sales for fiscal year 2015 were $1.078 billion, an increase of 20 percent compared to the prior
fiscal year. The Aortic & Peripheral Vascular division includes a portion of the Covidien Peripheral business, which contributed
strong performance during the fourth quarter of fiscal year 2015 on the strength of its chronic venous insufficiency products.
The increase in Aortic & Peripheral Vascular net sales was driven by IN.PACT Admiral drug-coated balloons in the U.S. and
international markets. Aortic & Peripheral Vascular net sales were also driven by strong sales of our Valiant Captivia Thoracic
Stent Graft System, and growth from the Endurant 2S Abdominal Aortic Aneurysm (AAA) Stent Graft System in the U.S. and
Western Europe. Net sales for the Aortic & Peripheral Vascular division were impacted by unfavorable foreign currency
translation and increased competitive and pricing pressures in the U.S., Western Europe, and Japan.
The Cardiac and Vascular Group’s net sales for fiscal year 2014 were $8.847 billion, an increase of 2 percent compared to the
prior fiscal year. Foreign currency translation had an unfavorable impact on net sales of $118 million compared to the prior
fiscal year. The Cardiac and Vascular Group’s performance was primarily a result of solid growth in Aortic & Peripheral
Vascular and growth in Cardiac Rhythm & Heart Failure and Coronary & Structural Heart. Additionally, the Cardiac and
Vascular Group’s performance was favorably affected by new products and the August 2013 acquisition of Cardiocom and
January 2014 acquisition of TYRX. See the more detailed discussion of each business’s performance below.
Cardiac Rhythm & Heart Failure net sales for fiscal year 2014 were $4.996 billion, an increase of 2 percent compared to the
prior fiscal year. The increase in Cardiac Rhythm & Heart Failure net sales were driven by continued global acceptance of the
Arctic Front system and the launches of our Advisa DR MRI SureScan in the U.S. and Japan in the fourth and second quarters
of fiscal year 2013, respectively. Net sales of Cardiac Rhythm & Heart Failure were also impacted by the continued acceptance
of our shock reduction and lead integrity alert technologies, and our Viva/Brava family of CRT-D devices and Evera family of
ICDs. A strong launch of Reveal LINQ in Western Europe and the U.S. in the second half of fiscal year 2014 and net sales from
the acquisition of Cardiocom and CLMS also contributed to the increase in net sales. Net sales for the Cardiac Rhythm & Heart
Failure were partially offset by unfavorable foreign currency translation, declines in the U.S. High Power and Low Power
markets, and pricing pressures in certain international markets.
Coronary & Structural Heart net sales for fiscal year 2014 were $2.956 billion, an increase of 2 percent compared to the prior
fiscal year. The increase in Coronary & Structural Heart net sales were driven by strong sales of the CoreValve transcatheter
aortic heart valves in Western Europe and of our perfusion system and blood management products in emerging markets.
Growth was also driven by a strong initial U.S. launch of CoreValve transcatheter aortic heart valves for extreme risk patients in
the fourth quarter of fiscal year 2014. The increase in net sales was also due to worldwide share gains in drug-eluting stents,
driven by the continued strength of our Resolute Integrity drug-eluting coronary stent. Growth was partially offset by
unfavorable foreign currency translation, pricing pressures, and declines in our cardiopulmonary product lines driven principally
by a competitor’s full reentry into the market following a supply disruption and by unfavorable foreign currency translation.
Aortic & Peripheral Vascular net sales for fiscal year 2014 were $895 million, an increase of 3 percent compared to the prior
fiscal year. The increase in Aortic & Peripheral Vascular net sales was driven by strong sales of our Valiant Captivia Thoracic
Stent Graft System, as well as the launch of the Endurant II AAA Stent Graft System in Japan in the first quarter of fiscal year
2014. Growth was partially offset by the divestiture of a reentry catheter product line in the second quarter of fiscal year 2014,
the removal of a peripheral below-the-knee product from the market, unfavorable foreign currency translation, and increased
competitive and pricing pressures in the U.S., Western Europe, and Japan.
Looking ahead, we expect our Cardiac and Vascular Group could be impacted by the following:
•Increasing competition, fluctuations in foreign currency, and continued pricing pressures.
•Continued future growth from Reveal LINQ, our next-generation insertable cardiac monitor launched in
international and U.S. markets in the third and fourth quarters of fiscal year 2014, respectively.
•Continued acceptance and future growth from the Viva/Brava family of CRT-D devices and the Attain
Performa portfolio of quadripolar leads. The Viva/Brava family of CRT-D devices utilizes a new algorithm,
called AdaptivCRT, which improves patients’ response rates to CRT-D therapy by preserving the patients’
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