Memorandum

Medtronic 2020 Investor and Analyst Day – MiniMed 780G launched in Europe; enthusiasm for Companion/InPen acquisition; revamped company-wide operating model to bring “faster, more nimble” Medtronic under new leadership – October 14, 2020

Executive Highlights

  • In AID, the biggest update was a subtle mention that MiniMed 780G has “launched in Europe.” This is in line with Medtronic’s recent estimates that the system would launch in Europe “this fall.” We look very forward to getting dQ&A data from multiple EU countries. On the US end, there were no substantial updates for MiniMed 780G or 770G – 770G was approved by the FDA in September.

  • In CGM news, Diabetes VP of R&D Ali Dianaty suggested that the “Zeus” CGM has still not been submitted to the FDA. We confirmed later today that Medtronic is now aiming for “before the end of the year.” Presumably, they mean calendar year, which represents a ~three-month delay from previous expectations to submit by “end of summer,” following conclusion of the pivotal trial back in May. According to the Farmer’s Almanac, the last day of summer this season was September 22, so this is about three week’s late at present, and if they finish in January 2021 (further slippage is possible), then this would be about a four month delay, which isn’t much in the Pandemic though every quarter counts. There is also some question around whether Zeus will require fingerstick calibrations, but the device is still expected to utilize the same form factor as Guardian Sensor 3 with a reusable transmitter and seven-day sensor wear.

  • In a more positive surprise, Mr. Salmon commented during a Q&A session that Medtronic completed its Synergy CGM pivotal trial enrollment “yesterday.” We don’t have a detailed sense of how the trial has progressed from our last update in August when we were told the pivotal was “under way,” but it’s good to know enrollment has finished. As a reminder, this CGM will be fully-disposable and 50% smaller than Zeus.

  • Medtronic’s acquisition of Companion Medical was a major highlight during Diabetes Group head Sean Salmon’s short ten-minute presentation. Early on, Mr. Salmon emphasized the importance of the acquisition, saying it moves Medtronic Diabetes from a “tethered pump” business to an “insulin delivery” company. Additionally, Mr. Salmon estimated that Companion InPen’s total addressable market (TAM) of MDI users was “nearly 12 times larger than the current segment of mostly type 1 patients [Medtronic] serves today.” Notably, Medtronic alluded to plans to launch an “insulin dose capture” device by April 2020 at its Analyst Meeting two years ago. As Medtronic continues to integrate Companion into its ecosystem, we could see Medtronic utilize its acquisition of Nutrino and Klue to bring in “advanced food logging” and ultimately integrate InPen with the Sugar.IQ app. We also heard multiple times references to more funding that would be possible in diabetes in particular, for strategic acquisitions or partnerships.

  • It was the first-ever Investor and Analyst Meeting for both Medtronic CEO Geoff Martha (took over in April 2020) and Diabetes Group head Sean Salmon (took over in October 2019). Evercore analyst Vijay Kumar (and many others) called out a clear change in tone and energy to this Analyst Day during Q&A, noting a “new, confident, aggressive Medtronic.” We caught the differences, too, from the driving percussive transition beats to the format of the meeting itself. This year’s presentations were shorter and more granular; rather than having the four Group heads give presentations on their respective groups, this year’s event included fifteen presentations from subgroups featuring 26 presenters. While in past years, Medtronic has been very clear about the growth expectations that it assumes for the following year or two, they have had less of that in recent years, and no specific forecasts were included today.

  • Mr. Martha highlighted during his opening that Medtronic has revamped its operating model, focusing on “competitiveness and speed.” As part of this revamping, Medtronic has “empowered” 20 individual operating units within its four “Groups” structure (see picture below). Diabetes, by far the smallest Group, contains only one “Diabetes” operating unit. Leadership compensation structure has also been modified to focus on growth, in a continued effort towards Mr. Martha’s vision for Medtronic as “not just leading med tech,” but “leading med tech forward.”

Medtronic held its biennial 2020 Investor and Analyst Meeting today, following meetings in 2018, 2016, 2014, and 2012. It was the first Analyst Meeting for new CEO Geoff Martha and new Diabetes Group head Sean Salmon and we were impressed by the event’s pace and energy. See the Diabetes Group’s slides here and read our highlights below.

Pipeline Highlights

1. Pipeline Updates Summary Table: AID/Pumps, CGM, MDI Support, and Other Projects; comparison to 2018 Analyst Meeting expectations

Below, we summarize Medtronic’s publicly disclosed pipeline as of its last Analyst Day in 2018 and note timing updates and changes since 2018. Specifically, we summarize Medtronic’s AID/pump pipeline, plans for CGM, digital health and decision support projects (no updates here), advances in MDI support, and infusion set work. Those projects which were discussed in today’s 2020 Analyst Day are highlighted in yellow. These include MiniMed 780G, MiniMed 770G, Guardian Sensor 4/Zeus CGM, Synergy CGM, the Companion Medical acquisition (and InPen specifically), and the 7-day Extended-Wear Infusion Set. As we noted below (see Business highlights), under new leadership, this year’s Analyst Meeting took a significantly different format than previous meetings. Part of the changes included in a more streamlined and focused approach to pipeline presentations. Finally, the following tables are unlikely to be perfect – Medtronic’s changing product names, fiscal year timing, and other factors make it difficult to keep track of the pipeline.

AID/Pumps

Product

Features

Timing

MiniMed 780G (Advanced Hybrid Closed Loop)

  • Auto correction boluses

  • Two glucose setpoints (100 and 120 mg/dl)

  • Fewer alarms

  • Bluetooth for software updating, data uploading, and secondary display on mobile app

 

MiniMed 770G (Bluetooth enabled 670G)

  • Bluetooth connectivity with MiniMed smartphone app for secondary display, remote monitoring, and data uploading

  • Can automatically upgrade to 780G when that becomes available in the US

  • Available for patients down to 2 years old

Personalized Closed Loop

  • 100% Auto Mode capable: meal and activity prediction

  • Smartphone control

  • >85% Time in Range goal

Tidepool Loop

  • Medtronic to develop an interoperable ACE pump compatible with Tidepool Loop

  • Not part of pipeline as of 2018 Analyst Day

  • Announced at ADA 2019

  • No mention since announcement

CGM Hardware

Product

Features

Timing

Guardian Connect

  • Guardian Sensor 3 CGM (2 cal/day, adjunctive)

  • 7-day wear, reusable transmitter

  • Apple iOS and Android compatibility (no reader)

Guardian Sensor 4/”Zeus”

  • Called Guardian Sensor 4 and Zeus CGM, and previously referred to as Project Harmony

  • Non-adjunctive indication

  • Calibrations unclear: “substantial reduction or elimination” of fingersticks (per today’s comments), but “zero calibrations” at EASD 2020

  • 7-day wear, reusable transmitter form factor

  • Per 2020 Analyst Day, “expected to exceed iCGM standards for hypoglycemic performance and showed improved accuracy”

  • Behind schedule from 2018 Analyst Day expectations

  • Expected to be available “very, very shortly” as of  EASD 2020; however, as of 2020 Analyst Day, yet to be submitted to the FDA

  • Pivotal trial for Zeus completed in May, currently looking for venue to read out

“Synergy”

  • Previously referred to as Project Unity

  • 50% volume reduction compared to Zeus and fully-disposable design (sensor+transmitter)

  • Seven-day wear expected

  • Day 1 only or no calibrations

  • Easy 3 step insertion, no over tape

  • On track with 2018 Analyst Day expectations

  • Target wear-length seems to have decreased from 10-14 days to 7 days

  • FDA submission anticipated for 2H21

  • US pivotal “complete” as of October 2020 (per today’s comments)

Envision Pro

 

  • Previously referred to as iPro 3

  • No calibration

  • 7-day wear, fully disposable form factor

  • Blinded professional CGM

Envision Real-Time

  • Previously referred to as iPro 3 real-time

  • Real-time professional CGM

Digital Health Ecosystem

Product

Features

Timing

Sugar.IQ First-Gen

  • Powered by IBM Watson

  • Uses AI to detect patterns between CGM, food, and daily routine data

Sugar.IQ IQCast

  • Notifies user if a hypoglycemic event is expected to occur in the next 1-4 hours

Sugar.IQ Dosing Assistant with Insulin Pen Dose Capture

  • Automated insulin dose capturing and food logging for MDI users

  • Smart bolus calculator built into Sugar.IQ

  • Missed 2018 Analyst Day expectations

  • Not mentioned after 2018 Analyst Day

  • Arguably achieved with Companion Medical acquisition in August 2020, though not integrated into Sugar.IQ/Guardian Connect (see below)

Inner Circle

  • CGM gamification app for Guardian Connect and MiniMed 670G users

  • Points are given for Time in Range that can be exchanged for “health-related items”

  • Mobile-responsive browser app, rather than native mobile app

Real-time coaching

  • Part of Medtronic’s type 2 diabetes pipeline

MDI Support

Product

Features

Timing

Companion Medical’s InPen

  • Only commercially available smart pen offering in the US

  • >20,000 users as of JPM 2020

  • CGM integrations partnerships with Senseonics and Dexcom

  • Smartphone app with insulin on board calculation and smart bolus calculator

  • Intend to use InPen + new AI (Nutrino and Klue) to “close the loop for MDI” patients

  • Not part of pipeline as of 2018 Analyst Day

  • Acquisition announced August 2020

  • Arguably part of Sugar.IQ Dosing Assistant with Insulin Pen Dose Capture project

Novo Nordisk smart pen

  • NovoPen 6 and Echo Plus reusable pens capture dose data

  • Pen attachment for disposable pens also in pipeline

  • Not part of pipeline as of 2018 Analyst Day

  • Data integration partnership announced at EASD 2019

  • Novo Nordisk pens slated for launch in 2Q20 as of DTM 2019, but that timeline has already passed with no updates

Infusion Sets

Product

Features

Timing

Extended-Wear Infusion Set

  • New all-in-one, hidden-needle Mio Advance inserter

  • Seven-day wear

  • Not part of pipeline as of 2018 Analyst Day

  • CE-Marked as of ATTD 2020

  • Currently in US pivotal trial (CT.gov)

MiniMed Mio Advance inserter

  • All-in-one, hidden-needle, fully-disposable inserter

MiniMed Pro-Set

  • In partnership with BD

  • “FlowSmart technology” in the catheter allows insulin to flow from two locations

  • Less painful, 30-gauge (thinner) insertion needle

Project Duo

  • Combined CGM and infusion set device with at least 7-day wear

2. MiniMed 780G has “launched in Europe”; no US timeline updates for MiniMed 770G or 780G

In AID, the biggest update was a subtle mention that MiniMed 780G has “launched in Europe.” This is in line with Medtronic’s recent estimates that the system would launch in Europe “this fall” and is sure to help maintain Medtronic’s OUS market share as it completes with Tandem’s Control-IQ, which, as of July, has launched in the UK and is rolling out in the rest of Europe throughout the rest of the year. The MiniMed 780G was one of the few Diabetes products highlighted throughout today’s presentations, including CEO Geoff Martha’s opening remarks. As a reminder, MiniMed 780G was CE-Marked in June 2020.

  • Diabetes Group head Sean Salmon did not offer any substantial updates on the US timeline for MiniMed 780G or 770G and only reminded investors of the MiniMed 770G FDA approval in September, which for the first time brought AID to people with diabetes ages 2-6 in the US. Medtronic began taking orders for MiniMed 770G that very week and shared that shipments would begin “later in the fall.” However, we haven’t heard updates on a specific shipment timeline since September.  In terms of MiniMed 780G in the US, we last heard in May that the MiniMed 780G system and algorithm will launch in the US “later this fiscal year” (FY21 ends in April 2021). We still haven’t heard of an FDA submission for MiniMed 780G, but when MiniMed 770G was approved, Medtronic shared with us that the 770G approval cleared the way for a MiniMed 780G FDA submission soon. We expect that the eventual 780G approval might come with a pediatric indication for users ages 7+, the ages included in the adult pivotal trial that read out at ADA 2020. However, it will not include the pediatric indication for ages 2-6: the pediatric pivotal (ClinicalTrials.gov page) for ages 2-6 is still ongoing and has been further delayed by COVID-19. When we last heard, Medtronic aimed for a September 30, 2020 primary completion date (no update on this front) and full study completion by January 2021, a notable delay given that this sets back the timeline for pediatric patients using MiniMed 770G who want to upgrade to MiniMed 780G when it is indicated for pediatric use.

    • Mr. Salmon was asked which CGM would be used with the MiniMed 780G, replying that 780G would likely be launched with “Zeus,” but be forward compatible with the next-gen “Synergy” sensor. At this point, neither of those CGM systems has FDA approval (or is even currently under FDA review, based on today’s remarks). As a reminder, we’d previously expected Zeus to be submitted to the FDA at the “end of summer” (see 1Q20), given the pivotal trial had finished in May. At the very least, we believe a non-adjunctive indication would be required for MiniMed 780G’s automatic correction bolus feature – Medtronic’s currently available CGM, Guardian Sensor 3, has been under review for a non-adjunctive indication since July 2019, with no updates for the past 15 months. See more on Medtronic’s CGM pipeline below.

2. “Closing the loop” for MDI patients with Companion acquisition, AI algorithms, and future CGMs; plans to scale InPen internationally

Building on Medtronic’s acquisition of Companion Medical in August, Mr. Salmon highlighted the potential to bring together technologies to “close the loop” for patients on MDI. Companion’s InPen offers MDI users in the U.S. the only FDA cleared “smart pen” experience with insulin dose tracking, Bluetooth connectivity, and an integrated smart bolus calculator. In the pipeline, Medtronic is working to combine InPen with its AI-powered meal detection acquisitions, Nutrino and Klue, as well as future CGMs such as Zeus or Synergy, to create an help close the loop for patients on MDI. As shown in the graphic below, the Companion acquisition has given Medtronic a major boost in reaching this goal – at the 2018 Analyst Day, Medtronic outlined plans to launch its own smart pen by April 2020. As the benefits of hybrid closed loop therapy become more and more evident for patients on insulin pumps, we are excited to see Medtronic work to bring similar technology to MDI patients who make up the vast majority of insulin intensive patients. Additionally, as Mr. Salmon expressed in Medtronic’s 2Q20 update, he sees significant potential for patients currently using InPen technology to be brought over to Medtronic’s AID systems (i.e., MiniMed 670G, 770G, and 780G) as they become more comfortable with “smart” insulin delivery and CGM technology. In line with the theme for today’s meeting of “accelerating growth,” Mr. Martha told viewers “do not underestimate the potential of smart pens.”

  • During Q&A, Mr. Salmon revealed that Medtronic is looking to scale InPen internationally and is currently “pulling together plans” for that process. This is not a surprise, but it’s good to see efforts to bring InPen to international markets already underway. The international smart pen landscape is more competitive than in the U.S. as other smart pens and caps have already received CE-Mark (e.g., Mallya, Novo Pen 6/Novo Pen Echo), but InPen’s rapidly growing brand recognition combined with Medtronic’s significant payer, sales, and distribution muscle should easily give InPen a very strong market position.

3. Zeus, Guardian Sensor 4 (?), CGM targeting FDA submission “before the end of the year”; pivotal data “should support a non-adjunctive claim in the US”

In disappointing CGM news, Diabetes VP of R&D Ali Dianaty suggested that the “Zeus” CGM has still not been submitted to the FDA. We later confirmed this Medtronic, who shared that filing is aimed for “before the end of the year.” This represents a ~three-month delay from previous expectations to submit by “end of summer,” following conclusion of the pivotal trial back in May. On a more positive note, according to Mr. Dianaty, results from the Zeus pivotal trial “should support a non-adjunctive claim in the US.” Mr. Salmon also shared that pivotal results indicate the Zeus CGM “exceeded” iCGM standards for accuracy in hypoglycemia – we believe the plan for Zeus continues to be to submit as a class II iCGM. Additionally, according to Mr. Salmon, Zeus will be “immediately compatible” with Medtronic’s MiniMed 780G Advanced Hybrid Closed Loop; we took this to mean that Zeus will be available, or launched simultaneously with, MiniMed 780G – at the very least, the non-adjunctive indication would be required for MiniMed 780G to deliver automatic corrections.

  • At EASD last month, Mr. Dianaty announced a device, Guardian Sensor 4, that we believed to be the same as, or some variant, or “Zeus.” That presentation included a bullet that Guardian Sensor 4 would have “zero calibrations”; today’s presentation includes a more cryptic “Goal to reduce or eliminate finger sticks” bullet. Otherwise, the highlighted features for EASD’s Guardian Sensor 4 and today’s Zeus are similar (see both slides below). It’s unclear whether today’s “reduce or eliminate finger sticks” was a hedge from the previous goal for “zero calibrations,” or if the difference reflects regulatory differences between Europe and US – we’re looking forward to a clarification from Medtronic soon. Calibrations aside, we believe the targeted feature set for Zeus remains the same as before, utilizing the same form factor as Guardian Sensor 3 with a reusable transmitter and 7-day sensor wear.

Slide taken from today’s presentation.

Slide taken from EASD 2020.

4. Smaller, fully-disposable Synergy CGM pivotal trial enrollment completed “yesterday”; no FDA submission timeline

In a nice surprise, Mr. Salmon commented during a Q&A session that Medtronic completed its Synergy CGM pivotal trial enrollment “yesterday.” We don’t have a detailed sense of how the trial has progressed from our last update in August when we were told the pivotal was “under way,” but it’s good to know enrollment has finished. As a reminder, the Synergy CGM introduces a new form factor for Medtronic with a profile that is 50% smaller than that of Zeus. Synergy also merges the CGM transmitter and sensor into one device that can be worn for seven days and is entirely disposable. Today, Mr. Dianaty shared a goal for “self-calibration” in the Synergy device (and potentially Zeus, as well). To our understanding, the phrase “self-calibration” (first used by Medtronic at DTM 2018) is Medtronic’s way of achieving a zero-calibration CGM, without making it factory-calibrated. Utilizing a machine learning-driven algorithm and sensor data (e.g., electrochemical impedance spectroscopy), the CGM can “self-calibrate” itself, thus eliminating for the user to perform fingersticks. This technology is already available in Medtronic’s Envision Pro CGM.

Business Highlights

1. Companion Medical’s InPen expands total addressable market by “nearly 12 times,” provides earlier access to diabetes patients at point of diagnosis

Medtronic’s acquisition of Companion Medical was a major highlight during Diabetes Group head Sean Salmon’s short ten-minute presentation. Early on, Mr. Salmon emphasized the importance of the acquisition, saying it moves Medtronic Diabetes from a “tethered pump” business to an “insulin delivery” company. Additionally, Mr. Salmon estimated that Companion InPen’s total addressable market (TAM) of MDI users was “nearly 12 times larger than the current segment of mostly type 1 patients [Medtronic] serves today.” Helping drive the wider growth opportunity, entering the MDI market also allows Medtronic to access patients earlier in their diabetes, even at the point of diagnosis. For some patients and providers, especially those newly diagnosed or technology-naïve, onboarding onto InPen (or even Insulet’s Omnipod Dash patch pump), is easier than onboarding onto a traditional, tubed pump. With offerings for both MDI users and pumpers, Medtronic also has the opportunity to convert users in-house from MDI to pump therapy. Especially as InPen becomes integrated with Medtronic’s ecosystem (e.g., CareLink, CGMs) and AID offerings become more compelling, Medtronic could certainly use InPen as a channel to bring more patients onto its AID offerings, something Mr. Salmon briefly alluded to in the graphic below.

  • Rather than building out its own offering, Medtronic now has the only commercially available smart pen in the US. This gives Medtronic an easier, quicker, and more proven pathway into the nascent smart pen landscape. The pump market has been a tough business over the past few years, growing at a slower rate than the diabetes market more broadly (see 2Q20 Industry Roundup). Medtronic, in particular, has seen flat-to-declining pump revenue over the past few years (though from a much larger base than its competitors). In contrast, InPen is growing rapidly; at JPM 2020, Companion CEO Sean Saint noted that InPen added ~17,000 new users in 2019 alone. During today’s update, Mr. Salmon noted that Medtronic is working to bring InPen into international markets quickly and cited InPen as a growth driver, saying, “Just expanding access will drive growth in the near-term.”

  • Notably, Medtronic alluded to plans to launch an “insulin dose capture” device by April 2020 at its Analyst Meeting two years ago. We didn’t hear any news about this on subsequent Medtronic updates, but given the appeal of having an MDI offering (see above), it’s not a surprise to see Medtronic’s interest in the area. As a reminder, the Companion Medical acquisition was announced in August and closed in September. With InPen and its accompanying smartphone app (with insulin on board calculation and smart bolus calculation), Medtronic has a compelling “insulin dose capture” device. At the 2018 Analyst Day, Medtronic also planned to include “advanced food logging” and integration of dosing assistance with Sugar.IQ. As Medtronic continues to integrate Companion into its ecosystem, we could see Medtronic utilize its acquisition of Nutrino and Klue to bring in “advanced food logging” and ultimately integrate InPen with the Sugar.IQ app.

2. First Investor and Analyst Meeting for new CEO Geoff Martha and new Diabetes Head Sean Salmon; restructuring to create “faster,” “more nimble” organization; employee morale at “all-time high”

It was the first-ever Investor and Analyst Meeting for both Medtronic CEO Geoff Martha (took over in April 2020) and Diabetes Group head Sean Salmon (took over in October 2019). Evercore analyst Vijay Kumar (and many others) called out a clear change in tone and energy to this Analyst Day during Q&A, noting a “new, confident, aggressive Medtronic.” We caught the differences, too, from the driving percussive transition beats to the format of the meeting itself. Rather than the traditional Group-based organization used in past years (Medtronic is divided into four Groups, Cardiac and Vascular, Minimally Invasive Therapies, Restorative Therapies, and Diabetes), this year’s meeting centered on two themes: (i) “Going on the Offensive & Taking Share” and (ii) “Creating & Disrupting Big Markets.” Additionally, the presentations were shorter and more granular; rather than having the four Group heads give presentations on their respective groups, this year’s event featured fifteen presentations from subgroups (Cardiac Rhythm Management, TAVR, Surgical Innovations, Diabetes, Neurovascular, Cranial & Spinal Technologies, Pelvic Health, Neuromodulation, Surgical Robotics, Renal Denervation, Cardiac Ablation Solutions, Peripheral & Endovenous, Transcatheter Mitral/Tricuspid, Gastrointestinal, and Micra/EV-ICD). In a concerted effort to showcase Medtronic’s “deep bench of [leadership] talent,” these fifteen presentations featured 26 presenters (compared to just four in 2018).

  • In addition to breaking apart this year’s presentations, Mr. Martha highlighted during his opening that Medtronic has revamped its operating model, focusing on “competitiveness and speed.” As part of this revamping, Medtronic has “empowered” 20 individual operating units within its four “Groups” structure (see picture below). Diabetes, by far the smallest Group, contains only one “Diabetes” operating unit. During Q&A, Mr. Martha explained a bit further, sharing that the goal of the operating units is to clarify and decentralize “decision-making rights” into individual units, creating a more “de-layered” organization. Each of these operating units has responsibility for its own P&L, product development and clinical resources, and sales organizations. In sum, the re-organization is aiming to drive a “faster and more nimble” overall organization with an emphasis on revenue growth and capturing market share.


  • In addition to the new operating model, compensation structure has also been modified to focus on growth. While he didn’t share all the details, Mr. Martha expressed his view that Medtronic’s market share “is not commensurate with [the talent] of our tech leadership.” Throughout the day, Medtronic executives noted disappointment that the company was growing slower than the market in many areas (including diabetes). Executive performance criteria have been modified to focus on revenue growth, market share (“[if you’re] not growing at or above the market, that’s a problem”), and shareholder return. Mr. Martha explained that these changes had been developed in collaboration with the rest of the company’s executive committee (“[The executive committee] has probably spent more time together in the last five months than in the last five years”), along with the company’s Vice Presidents (~500 globally). Ultimately, it’s hard to predict how this culture change might affect the company, financially or technologically, but it’s clear that Mr. Martha has confidence in the company’s leadership and has focused on empowering them early into his CEO tenure. In an encouraging sign, Mr. Martha shared that Medtronic employee morale, measured every 6-12 months, is currently at an “all-time high.” In his closing remarks, Mr. Martha concisely expressed his vision for Medtronic as “not just leading med tech,” but “leading med tech forward.”

  • In another conspicuous change, we noticed that this year’s Analyst Meeting featured few public launch or regulatory timings. In fact, the PowerPoint-based presentations of the past were eschewed for a more intimate meteorologist/TV show host-esque presentations with the presenters standing in front of, or next to, graphics displayed in the back (see screenshots comparing 2018 with 2020 meetings below). We also noted the lack of concrete timelines at Medtronic Diabetes’ Analyst update at ADA 2020 – it seems that approach is part of a broader company-wide effort to avoid overpromising on timelines (and perhaps, also for competitive reasons). 

Picture taken from 2018 Analyst Meeting.

Picture taken from 2020 Investor and Analyst Meeting.


3. Goal to be carbon neutral in operations by 2030; five-year goals for management representation from 2015 met; Medtronic on Forbes’ “Just 100: Companies Doing Right by America” list

Towards the end of his opening address, Mr. Martha outlined some of Medtronic’s efforts around environmental, social, and governance goals, including a goal to be carbon neutral in operations by 2030.

  • In 2015, Medtronic set five-year goals to achieve >20% and >40% representation for ethnic minorities and women, respectively, in its leadership (defined as Manager and above). As of FY20, a strong 23% of Medtronic’s leaders belonged to an ethnic minority group. The >40% women goal was narrowly missed, coming in at 39%. Additionally, in FY20, Medtronic achieved 100% gender pay equity in “many countries, including the US,” and 99% gender pay equity for all company employees.

  • Medtronic was also recently placed on Forbes’ “Just 100” list for “companies doing right by America. On the list, Medtronic ranks #29 overall and first in the category of “Healthcare Equipment and Services.” Other notable diabetes-related companies on the list, in order of ranking, include Alphabet, Anthem, Cigna, P&G, Merck, JNJ, Humana, Lilly, Metlife, and CVS. Largely for its work in boosting ventilator supply during the COVID-19 pandemic, Medtronic also came in at #13 on Fortune’s “Change the World” company list last month.

 

--by Hanna Gutow, Katie Mahoney, Albert Cai, and Kelly Close