Medtronic said it has decided to exit its ventilator product line, and retain and combine its remaining Patient Monitoring and Respiratory Interventions (PMRI) businesses into one business unit called Acute Care and Monitoring (ACM).
"Exiting the increasingly unprofitable ventilator product line and combining the remaining businesses allows for increased investment in ACM with a focus on profitable growth," the company said. "Given this increased investment along with an improved competitive landscape, the company has strong conviction in driving durable category leadership in this newly combined business."
The company said it will continue to honor existing ventilator contracts to serve the needs of its customers and their patients, and expects that existing manufacturers, who today account for the majority of the market, can meet customer demand for new ventilators moving forward.
The announcement comes as something of a reversal of Medtronic's plans from about one year ago. In October 2022, the company said it intended to pursue a separation of the its combined PMRI businesses.
Medtronic's change of heart comes as the company reported third-quarter revenue of nearly $8.1 billion, an increase 4.7% year over year. The company attributed the increase to strong growth in Diabetes, Core Spine, Cardiac Surgery, Structural Heart, and Cardiac Pacing, as well as strength in international markets.
