Medtronic 2016 Annual Report Download - page 9

Table of Contents
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The following are the principal products offered by our Diabetes divisions:
Integrated Diabetes Management Solutions We have an integrated insulin pump and CGM system currently available on the
market. In the U.S., we offer the MiniMed 530G System featuring SmartGuard technology, which automatically suspends insulin
delivery when glucose levels reach a pre-determined threshold, and newest CGM sensor, Enlite, a sensor that can be worn for 6-
days and is more comfortable, more accurate, and smaller than our previous generation sensor. Outside the U.S., we offer our
MiniMed 640G System, an integrated system with the Enhanced Enlite CGM sensor that features SmartGuard technology, which
automatically suspends insulin delivery when sensor glucose levels are predicted to approach a low limit and then resumes insulin
delivery once levels recover.
Professional CGM In addition to our Personal CGM (Enlite), we offer physicians a Professional CGM product called the iPro2/
iPro Professional CGM System. Patients wear the iPro2/iPro recorder to capture glucose data that is later uploaded in a physician’s
office to reveal glucose patterns and potential problems, including hyperglycemic and hypoglycemic episodes. The data leads to
more informed treatment decisions.
Connected Care We continue to innovate and offer new connected care solutions, including the MiniMed Connect, which is the
only system providing remote access to pump and sensor data on the user's smartphone.
CareLink Therapy Management Software Our web-based therapy management software solutions, including CareLink Personal
software for patients and CareLink Pro software for healthcare professionals, to help patients and their health care providers control
their diabetes.
CUSTOMERS AND COMPETITORS
Cardiac and Vascular Group The primary medical specialists who use our Cardiac and Vascular products include
electrophysiologists, implanting cardiologists, heart failure specialists, cardiovascular, cardiothorasic, and vascular surgeons and
interventional cardiologists and radiologists. Our primary competitors are St. Jude Medical, Inc. (St. Jude), Boston Scientific
Corporation (Boston Scientific), Sorin Group (Sorin), Edwards Lifesciences Corporation (Edwards), C.R. Bard Inc. (Bard), and
Abbott Laboratories (Abbott).
Minimally Invasive Therapies Group The products and therapies of this group are used primarily by hospitals, physicians' offices,
and ambulatory care centers, other alternate site healthcare providers and less frequently in home settings. Our primary competitors
are Johnson & Johnson, Boston Scientific, Baxter International Inc., and Bard.
Restorative Therapies Group The primary medical specialists who use the products of this group include spinal surgeons,
neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, interventional
radiologists, and ear, nose, and throat specialists. Our primary competitors include Johnson & Johnson, Boston Scientific, St. Jude,
Stryker Corporation (Stryker), NuVasive, Inc., and Zimmer Holdings, Inc. (Zimmer).
Diabetes Group The primary medical specialists who use and/or prescribe our Diabetes products are endocrinologists,
diabetologists, and internists. Our primary competitors are Johnson & Johnson, DexCom, Inc., Tandem Diabetes Care Inc., Insulet
Corporation, and F. Hoffmann-La Roche Ltd.
OTHER FACTORS IMPACTING OUR OPERATIONS
Research and Development
The markets in which we participate can be subject to rapid technological advances. Constant improvement of products and
introduction of new products is necessary to maintain market leadership. Our research and development (R&D) efforts are directed
toward maintaining or achieving technological leadership in each of the markets we serve in order to help ensure that patients
using our devices and therapies receive the most advanced and effective treatment possible. We remain committed to developing
technological enhancements and new indications for existing products, and less invasive and new technologies for new and
emerging markets to address unmet patient needs. That commitment leads to our initiation and participation in many clinical trials
each fiscal year as the demand for clinical and economic evidence remains high. Furthermore, our development activities are
intended to help reduce patient care costs and the length of hospital stays in the future. We have not engaged in significant customer
or government-sponsored research.
During fiscal years 2016, 2015, and 2014, we spent $2.2 billion (7.7 percent of net sales), $1.6 billion (8.1 percent of net sales),
and $1.5 billion (8.7 percent of net sales) on R&D, respectively. Our R&D activities include improving existing products and