Medtronic's early days in the United States

1949-19601949, Earl Buchan and his brother-in-law Palmer Hemensley co-founded Medtronic. Their idea began with Earl Buchan's part-time job at Northwest Hospital in Minneapolis, Minnesota.

Through his wife, who worked as a medical technician in Northwest Hospital at that time, Earl Buchan gradually became familiar with the hospital staff. When the hospital staff learned that Earle was a graduate student majoring in electronic engineering at the University of Minnesota, they asked him to help repair some hospital medical electronic equipment, because hospital engineers could only repair some heavy medical equipment, but could do nothing about exquisite laboratory equipment. Palmer, the co-founder of Medtronic, designed the first portable battery-driven external pacemaker.

Earl and Palmer realize that their chance has come. Earl gave up his postgraduate study, and Palmer also quit his job in the local timber mill. Together, they set up a company that repairs medical devices-Medtronic.

Two young people set up their studio in a 600-square-foot abandoned garage. The walls of the workshop are wooden boards for packaging refrigerators, and the steel bars removed from an old local bank are used as window frames. In winter, they rely on electric blankets and boiling stoves to keep warm. In summer, the rain from the ceiling becomes their natural air conditioner, and hand-made benches and tables are their furniture.

The initial progress was not smooth: the turnover in the first month was $8, which was the reward for repairing a centrifuge. The following year, Earl Buchan and Palmer became agents of several medical equipment companies in the Midwest of the United States, and Medtronic's business began to develop. When the service business increased and the labor force increased, Medtronic rented another garage and later owned an apartment. In the 1950s, more than half of the company's income was realized by selling products produced by other companies. While selling and maintaining these products, Earl and Palmer met with a large number of doctors in the Midwest, including researchers in medical research laboratories. Those researchers often ask Medtronic engineers to help them modify instruments or design new instruments for some special experiments. The company began to customize products for customers, and thus began manufacturing business.

In 1950s, although Medtronic produced nearly 65,438+000 kinds of equipment for customers, only 65,438+00 of them formed a real product line, including two kinds of external defibrillators, an animal ventilator, a heart rate monitor and a physiological stimulator.

As an original product, its design is far from exquisite, and the parts are handmade or supplied by local electronic dealers or second-hand markets. People often enjoy soldering irons or installing equipment. Quality control is also carried out by visual inspection. The packaging material is Sunday newspaper, and the product shipping cartons are abandoned by local businessmen. From 196 1- 1970 to 196 1, a garage and an apartment can no longer accommodate the rapid development of Medtronic. That spring, Medtronic moved its headquarters to a 65,438+05,000-square-foot building in San Antonio, Minnesota. The building will be expanded to 65,438+005,000 square feet by the end of 1960s, which can accommodate offices, manufacturing areas, prototype laboratories, libraries and auditoriums where sales training and technical lectures can be held.

By 1962, Medtronic's product line has been expanded to 2 1. Its sales also increased from 1960 USD to 500,000 USD. However, the profit outlook is not optimistic. The cost of moving to a new building, the increasing market cost and the large investment in product research and development have increased Medtronic's loss from 1960 to 14400.

Just on the verge of bankruptcy, Medtronic obtained an installment payment of $654.38 million+from the bank, which attracted the attention of venture capitalists and laid off employees. The company also gave up some unprofitable products and shifted its focus to prosthetic limbs and surgical electronic equipment. By 1963, the company's financial operation returned to normal, with annual sales of 985,000 USD and profit of 73,000 USD. In that year, Medtronic sold an average of 65,438+000 pacemakers every month, and 20% of its revenue came from overseas. From 65438 to 0966, Medtronic purchased related patents from Great Batch Chardack Company. These innovative and successful early products have enabled Medtronic to experience the rapid development of pacing technology in the past decade.

For example, in the middle of 1960, Medtronic manufactured the first intravenous pacemaker. Its pacing electrode leads can reach the heart through veins without thoracotomy or general anesthesia. 1967 Medtronic introduced two kinds of "on-demand" pacemakers, which can avoid the influence of artificial pacing on patients' own heartbeat. These two types of pacemakers, one is external and the other is implantable, can sense the patient's heartbeat and only provide pacing when necessary.

Medtronic's product line also includes a vein cleaner, which can discharge high-frequency current through needle-shaped electrode wires to treat varicose veins. Products also include: Peri-Start, a gastrointestinal pacemaker; And baby pacemakers.

Several studies on non-cardiogenic pain started in 1960s laid the foundation for Medtronic in the field of neurology. A study conducted in cooperation with case western reserve university focused on suppressing pain through electrical stimulation of the back spine. Subsequently, 1969, Medtronic introduced the implantable back spine stimulator and brain stimulator.

By 1968, Medtronic's total sales soared to120,000 USD, and its profit exceeded10,000 USD. The number of personnel has also increased from 36 in 1962 to 348. In addition, in order to comply with the relevant regulations of the US Food and Drug Administration, Medtronic established a purification workshop for the production of implant equipment. The workshop installed an air purification system to strictly control the temperature and humidity. All these have greatly improved Medtronic's product quality and increased production capacity.

With the development of business, the original building was not enough, so Medtronic moved its production and operation department to Les Greek in Frederic, a suburb of Minneapolis. Medtronic's overseas business accounts for about one-third of its total revenue, while Europe accounts for most of its overseas business. In order to better serve the European market, Medtronic has established a service center at Schiphol Airport in Amsterdam, the Netherlands, with the telephone number 1967. This 24-hour service center provides clinicians with technical information, repairs and tests equipment, and provides sales assistance.

Competitors from Europe compete at a much lower price than Medtronic. In order to meet this challenge, occupy the European market and actively explore the markets in Africa and the Middle East, Medtronic has set up a global branch overseas and a second production plant in Kerr Clade, the Netherlands.

1968, Medtronic acquired its agent in Canada in order to gain direct control of global business and unify the company image. Two years later, Medtronic decided not to renew the contract with Parker International. At the same time, Medtronic began to acquire its major distributors in the United States, thus forming a global direct selling network. 1971-1980 in the late 1960s, Medtronic cooperated with Alcatel France to design a pacemaker driven by atomic energy. 1970, the first human pacemaker was implanted in Paris. This has created tremendous progress in pacemaker technology for decades.

These advances include: 1970 introduced wing-shaped electrode wires and spiral electrode wires. The soft protrusion on the tip of the electrode lead enables the electrode lead to be fixed on the heart tissue more reliably. Spiral electrode lead, as its name implies, its tip can be screwed into myocardial tissue, unlike other electrode leads, which will not cause wounds and do not need suture.

Medtronic researchers have invested a lot of money in the research of pacemaker circuits to reduce the size of pacemakers and improve and expand their performance. 1979, these research results were obtained, and Medtronic introduced the Byrel AV physiological continuous pacemaker.

Only one year later, Medtronic introduced its first multi-program controlled pacemaker: Spectrax SX pacemaker, which has nine adjustable parameters and can be adjusted without trauma. In other words, doctors can adjust the settings of pacemakers to meet the needs of patients without surgery.

More and more business departments

At the end of 1970s, Medtronic began to set foot in other medical fields. 1976 formally established a neurological business department, and successively introduced Neuromod 3700 (deep brain stimulator for suppressing long-term pain) and ESI (device for treating lateral sinuses of spine). At the same time, the first spinal cord stimulator Pisces for treating long-term pain in limbs was introduced.

65438-0977, Medtronic established the Heart Valve Division. And introduced Medtronic "Hall" mechanical valve. The product is named after Dr. Carl Victor Hall, who was the first person to invent and implant this mechanical valve. This artificial prosthesis has no welding, joint and bending, and will not damage the valve function.

Earl Buchan continued to participate in Medtronic's work as Chairman of the Board of Directors. From 65438 to 0976, Medtronic recruited chairman and CEO. Dale R.Olseth, a former investment banker and chairman and CEO of Tonka, became the chairman and CEO of Medtronic. In the same year, Medtronic confirmed that one of its pacemakers had technical problems and recalled it for the first time. With more and more new medical equipment companies and increasingly fierce competition, Medtronic's market share in the United States has dropped from 60% to 40%.

Globally, Medtronic has maintained a 35% market share in the pacemaker market outside the United States. Accordingly, Medtronic has strengthened its global presence. Medtronic established its Latin American headquarters in Sao Paulo, Brazil on 197 1, and its European headquarters in Paris a year later. Medtronic started its direct sales business in Japan, while Medtronic established production bases in Puerto Rico, Canada and France. By the end of 1970s, Medtronic's total sales had exceeded $200 million. 1981-1990 In the 1980s, Medtronic made a good start. 198 1 year, Medtronic introduced the first pacemaker-Versatrax, which can sense and pace the atrium and ventricle at the same time. Two years later, Medtronic introduced ITREL, the world's first fully implantable programmable nerve stimulation device, to treat long-term pain.

However, the medical environment in the United States has changed, and private insurance companies have begun to pay fixed fees for medical equipment and surgery, resulting in a decline in the number of pacemaker implants. To make matters worse, after 1985 confirmed that there was a problem with the lead of a certain type of pacing electrode in Medtronic, Medtronic's sales declined for the first time in 23 years.

In order to cut costs, Medtronic reduced its staff and closed two departments, namely, the department that produces nuclear medical imaging equipment and the department that produces stress testing and heart monitoring. Medtronic also sold its factory in San Antonio and moved its headquarters to Les Greece, integrating sales, marketing and engineering.

1985, Medtronic launched the world's first single-cavity frequency response pacemaker, making Medtronic a headline news. Prior to this, single-chamber pacemakers usually worked at a fixed frequency-about 70 times per minute, regardless of human activities and blood needs. Activitrax has a micro sensor, which can detect the pressure changes caused by muscle activity or physical activity, and the circuit part of the pacemaker will convert these signals into electrical signals. Adjust the pacing frequency. This feature can improve the patient's vitality, but the pacemaker can't do this. activate business

From 65438 to 0985, Medtronic welcomed a new chairman and CEO Winston R.Wallin, a member of Medtronic's board of directors and former vice chairman of pillsbury. Wolin put forward the diversification strategy of the company's products as the main goal of his work.

In the next decade, Medtronic seeks to strengthen its leading position in the field of medical technology. 1985- 1988, the research and development expenditure of Medtronic increased from $37 million to $75 million. With the successful development of implantable cardioverter defibrillator and the world's first implantable programmable drug infusion system, Medtronic has expanded its products to two new fields.

Pacing business has also made rapid progress, most notably, Medtronic CapSure electrode lead was launched in 1987. The tip of this electrode lead is coated with steroids, which helps to reduce inflammation of myocardial tissue.

At the same time, Medtronic acquired and merged more than a dozen medical technology companies, which made Medtronic enter a new field. These acquisitions include Johnson &; Cardiovascular Department of amp Johnson Company (biological heart valve and cardiopulmonary equipment); Versafle delivery system company (coronary angiography catheter and guidance technology) and Bio-Medicus company (centrifugal heart pump).

1980, Medtronic acquired ——Vitatron, a Dutch pacemaker manufacturer, and established Bakken R&D Center in Maastricht, the Netherlands in 1987. This shows Medtronic's determination to strengthen its global market. Medtronic has also set up Bakken Education Center in India, Japan and other countries to serve doctors and Medtronic product distributors.

By 1990, Medtronic has successfully transformed from a single product company into a diversified and international medical technology company through internal development and strategic mergers and acquisitions.

Casting success

When William W.George joined Medtronic as the new president and chief operating officer in 1989, the company's sales had reached nearly $755 million. George used to be the president of Honeywell's aerospace business department. Two years later, when he officially became the CEO of Medtronic, Medtronic's turnover had exceeded $654.38 billion. More importantly, new products have made great contributions to this. The proportion of new products developed in two years rose from 654,38+04% six years ago to 40% of total sales.

Medtronic continues to implement the diversification strategy formulated by Win Wallin. Medtronic soon acquired TUR, a German pacemaker company, and CardioRhythm, a manufacturer of arrhythmia diagnosis and treatment equipment. And DLP, a company specializing in the manufacture of cardiac surgical intubation. Throughout the 1990s, Medtronic expanded its customers and patients to a global scale by acquiring or investing in a large number of medical technology companies. Through strategic acquisitions, Medtronic has established its leading position in the field of heart rhythm management and treatment of nervous system diseases. From 199 1-2000 to 1999, Medtronic has developed from a single product enterprise focusing on cardiac pacing therapy to a diversified global enterprise. Product and technical scope: treatment of chronic heart disease; Correcting degenerative diseases of spine; Treating Parkinson's disease; Control long-term pain; Severe rigidity and tremor; And the treatment of cerebral palsy and spinal cord injury.

Innovative products are constantly emerging, making Medtronic's revenue reach $4 billion in 1999. During the period of 10, the following significant progress has been made: the cardioversion defibrillator used to treat sudden cardiac death came out and was continuously improved.

Continuously improve pacing therapy and introduce products with smaller size, stronger function and longer life.

This paper introduces a small, portable and universal program controller. Ensure the continuous and reliable service of Medtronic implant products in major hospitals around the world.

The implantable nerve stimulator and implantable drug delivery system for treating long-term pain, rigidity, tremor and Parkinson's disease are introduced.

In order to adapt to the trend of minimally invasive cardiac surgery in the industry, we have designed and manufactured products that can shorten the operation process, shorten the hospitalization time and restore health faster.

Surgical equipment and balloon angiography have been greatly improved, including various stent systems, which can significantly reduce reoperation.

By acquiring market-leading companies, we will expand our business to various fields such as spine and plastic surgery, peripheral blood vessels, external defibrillation and otolaryngology. In the 1990s, the market was characterized by rapid, changeable and global demand for medical technology.

Many hospitals have joined the national procurement organization or completed procurement with other large medical institutions, which has greatly changed the procurement decision-making model.

In response to these changes, Medtronic launched the Cardiovascular Alliance, which is composed of major hospitals, doctors and Medtronic, and is committed to improving medical effects and reducing medical costs.

Cooperating with Norvatis to study the treatment technology of intrathecal injection of baclofen will greatly improve the quality of life of patients with ankylosing symptoms. With the advent of the information explosion era in the 1990s, from 65438 to 0995, the Internet became an important information link for companies, patients, customers and doctors. As part of the latest e-commerce strategy, Medtronic has joined the alliance with Healtheon/WebMD, a leading customer-centric medical information network. Provide information about Medtronic products and treatments online.

With the increasing variety of products, the scale of the company continues to expand. 199 1 year, Medtronic had 8,000 employees worldwide, and by the end of 1990s, it had more than 22,000 employees. Qi Xin, a staff member, worked together to design, test and manufacture the medical equipment and treatment schemes provided by them through their imagination, which improved the lives of more than 6,543,800 patients.

Continuous employee training enables them to master the special knowledge and technology needed for the success of the company in time. 1997 and 1999 Medtronic was also named one of the "most worthy companies to invest in" by Fortune magazine in1998-1-2002.

1999, Medtronic global employees and their customers * * * celebrate the 50th anniversary of Medtronic. At the same time, Medtronic launched a brand-new company logo-a human figure standing on the ground, and a brand-new advertising language-"medical technology, life depends." This new logo highlights Medtronic's concepts of "precision, leadership, passion" and "medical technology, life depends".

Patient-centered nursing

In 200 1 year, Art Collins, who had held several chief positions in Medtronic, was elected as the new CEO of Medtronic. He led Medtronic into the 2 1 century, prepared for new growth and innovation, and held a brand-new concept for the future: Medtronic is the world's leading medical technology company, committed to providing patients with lifelong solutions to treat chronic diseases.

This brand-new concept is made to cope with social changes: more and more patients with chronic diseases and higher medical expenses. In the main countries where Medtronic does business, the aging problem is getting more and more serious, and patients get more and more information, mostly through the Internet, which shows that people have more information than before and participate in their own treatment activities.

In order to better meet the new medical needs of "patient-centered", Medtronic integrated medical technology and information technology. The best example is CareLink network system, in which patients can download the information of their implantable defibrillators at home and send them to doctors for analysis through the Internet. CareLink network liberates patients from face-to-face doctor visits, so that patients can still be followed up and treated even when traveling.

Diabetes and heart failure, two global diseases that affect the lives and health of millions of people, are becoming the focus of Medtronic in the new century. In 200 1 year, Medtronic became the global leader in insulin infusion pump technology through the acquisition of MiniMed and MRG. InSync and InSyncICD systems are the first choice for heart failure.

Biotechnology and biological agents are becoming one of the most important products at the turn of the century. Our product InFuse bone prosthesis contains human bone morphogenetic protein, which can help to achieve better and faster spinal fusion by inserting it into the spinal space. Medtronic Health Care Center opened in Beijing on August 8, 20 10. It is the first health care center in Medtronic world and the first patient care center in the field of medical equipment. Medtronic's mission in setting up this center is to "innovate and shine life and build health together".

On June 5438+065438+ 10, 2008, Medtronic Medical Supplies Technology (Services) Shanghai Co., Ltd. signed a long-term cooperation agreement with the Cardiovascular Disease Prevention and Research Center of the Ministry of Health (NCCD) to prepare for the establishment of the NCCD patient education base-Medtronic Health Care Center. Its purpose is to popularize the knowledge of prevention and treatment of cardiovascular diseases and related risk factors, high-tech therapy and rehabilitation guidance to patients, their families and the public. Improve public awareness of self-care and advocate a healthy lifestyle.

The center is located at No.6 Fuxingmenwai Street, West Chang 'an Avenue, with convenient transportation, adjacent to China Workers' Home. It not only provides targeted disease and treatment knowledge education for patients and their families, but also sets up a treatment exhibition area, which provides a brand-new popular science education model for the public to understand disease knowledge and prevent diseases. The daily business of the center includes: lectures on chronic diseases, introduction of therapies, regular patient education meetings, large-scale free clinics and educational activities, community education, regular periodicals, etc.

Medtronic health care center is like a bridge, connecting doctors and patients, connecting hospitals and medical technology. The center provides convenient and effective health education channels for the public, especially those at high risk of chronic diseases. Help them stay away from diseases, improve their quality of life and regain their health!