1949-1960 In 1949, Earl Bakken and his brother-in-law, Palmer Hermundslie, partnered to create Medtronic, Inc. The idea for the two of them began with a part-time job Earl Bakken held at Northwestern Hospital in Minneapolis, Minnesota.
Earl Bakken became acquainted with the hospital staff through his wife, who was working as a medical technician at Northwestern at the time. When the staff learned that Earl was a graduate student in electrical engineering at the University of Minnesota, they asked him to help repair some of the hospital's medical electronics, because the hospital's in-house engineers could only fix the heavy medical equipment, not the delicate lab equipment. Palmer, a Medtronic co-founder, designed the first portable, battery-operated external pacemaker.
Earl and Palmer recognized their opportunity when Earl abandoned his graduate studies and Palmer quit his job at the local lumberyard to start Medtronic, a company that repaired medical instruments.
The two young men set up their shop in a 600-square-foot abandoned garage. The walls of the shop were built with boards from packing refrigerators, while steel bars removed from an old local bank were used as window frames. In the winter, an electric blanket and a water-boiling stove keep them warm, while in the summer, rainwater falling from the ceiling becomes their natural air conditioner, and handmade benches and tables serve as their furniture.
It didn't go well at first: the first month's turnover was $8, the return for repairing a centrifuge. The next year, Earl Bakken and Palmer became agents for several medical device companies in the Midwest, and Medtronic's business began to grow. As the service side of the business increased and the staff grew, Medtronic rented another garage and later owned an apartment building. in the 1950s, more than half of the company's revenues were generated by the sale of products manufactured by other companies. While selling and repairing these products, Earl and Palmer became acquainted with a large number of physicians in the Midwest, including researchers at medical research laboratories. Those researchers often asked Medtronic engineers to help them modify instruments or design new ones for particular experiments. The company began customizing its products, which led to a manufacturing business.
While Medtronic produced nearly 100 devices for customers in the 1950s, only 10 of them formed a true product line, including two external defibrillators, an animal ventilator, a heart-rate monitor, and a physiological stimulator.
As the first products, the designs were anything but sophisticated, and the parts were handmade or supplied by local electronics dealers or the secondhand market. People often ****ed a soldering iron or mounting equipment. Quality control was also all done by visual inspection. Sunday newspapers were used for packing materials, and product shipping cartons were discarded by local merchants. 1961-1970 By 1961, a garage and an apartment could no longer accommodate the rapidly growing Medtronic Corporation. That spring, Medtronic moved its headquarters to a 15,000-square-foot building in St. Anthony Village, Minnesota. The building, which was to be expanded to 105,000 square feet by the end of the 1960s, housed offices, manufacturing areas, prototype labs, a library, and an auditorium for sales training and technical seminars.
By 1962, Medtronic had expanded its product line to 21 products. Its sales increased from $180,000 in 1960 to $500,000, too. However, the outlook for profitability was not good, as the cost of moving to a new building, increasing marketing costs, and a heavy investment in product development increased Medtronic's losses from $16,000 in 1960 to $144,000 in the same year.
Just as it was teetering on the brink of bankruptcy, Medtronic secured a $100,000 installment payment from a bank and attracted the attention of venture capital, while laying off its workforce. The company also dropped some of its unprofitable products and shifted its focus to prosthetics and surgical electronics. By 1963, the company's financial operations were back to normal, with annual sales of $985,000 and a $73,000 profit. That year, Medtronic sold an average of 100 pacemakers per month, and 20 percent of its revenue came from overseas. In 1966, Medtronic acquired patents from Great Batch Chardack, and these innovative and successful early products enabled Medtronic to experience a quantum leap in pacing technology for nearly a decade.
For example, in the mid-1960s, Medtronic manufactured its first transvenous pacemaker. Its pacing electrode leads could be manipulated to reach the heart through a vein without opening the chest cavity or undergoing general anesthesia, and in 1967 Medtronic introduced two "on-demand" pacemakers that avoided the need for the pacemaker to artificially pace against the patient's own heartbeat. The two models, one external and one implantable, sense the patient's heartbeat and provide pacing from the pacemaker only when needed.
Medtronic's product line also includes a vein-clearing device that treats varicose veins by releasing high-frequency electrical currents through a needle-tip electrode lead. Products also include Peri-Start, a gastrointestinal pacemaker; and pacemakers for infants.
Several studies of non-cardiac causes of pain that began in the 1960s laid the foundation for Medtronic's work in the neurological field, with one study, conducted in collaboration with Case Western Reserve University, focusing on pain suppression through electrical stimulation of the back spine. Then in 1969, Medtronic introduced implantable back spine stimulators and brain stimulators.
By 1968, Medtronic's total sales had skyrocketed to $12 million, with profits of more than $1 million. Personnel also increased from 36 in 1962 to 348. In addition, Medtronic built a clean room for the production of implantable devices to comply with FDA regulations. The plant was equipped with an air purification system and strict temperature and humidity controls. All of this has greatly improved the quality of Medtronic's products and increased its production capacity.
As the business grew, the original building was no longer adequate, so Medtronic moved its manufacturing operations to Rice Greek in Fredly, a suburb of Minneapolis, Minn. Medtronic's overseas operations account for about one-third of its total revenues, and Europe accounts for the majority of its overseas business. To better serve the European market, Medtronic established a service center at Schiphol Airport in Amsterdam, the Netherlands, in 1967. The service center, which operates 24 hours a day, provides technical information to clinicians, repairs and tests equipment, and offers sales assistance.
To meet the challenge of competitors from Europe competing at prices far below Medtronic's, to capture the European market, and to aggressively pursue markets in Africa and the Middle East, Medtronic established a global presence overseas and opened its second manufacturing facility in Kerkrade, the Netherlands.
In 1968, in an effort to gain direct control of its global operations and to unify its corporate image externally, Medtronic acquired its Canadian distributor. Two years later, Medtronic decided not to renew its contract with Piker International. At the same time, Medtronic began acquiring its major distributors within the United States, thus creating a direct sales network worldwide. 1971-1980 In the late 1960s, Medtronic collaborated with Alcatel of France to design an atomic energy-powered pacemaker, and in 1970, the first human pacemaker was implanted in Paris. This ushered in decades of significant advances in pacemaker technology.
These advances included the introduction of winged electrode wires and spiral electrode wires in 1970. The soft protrusions on the tips of the electrode wires allowed the wires to be more reliably anchored to the heart tissue. The spiral electrode wire, like its namesake, has a helical tip that can be screwed into the myocardial tissue and, unlike other electrode wires, does not create an incision that requires sutures.
Medtronic researchers invested heavily in pacemaker wiring research to reduce the size of the pacemaker while improving and expanding its performance, and in 1979, these efforts came to fruition when Medtronic introduced the Byrel AV physiologic continuous pacemaker.
Just a year later, Medtronic introduced its first pacemaker with multiple programmable modalities: the Spectrax SX, which had nine adjustable parameters that could be adjusted noninvasively. In other words, physicians can adjust the pacemaker's settings to meet the patient's needs without surgery.
Growing business units
In the late 1970s, Medtronic began to venture into other medical fields, with the Neurology business unit officially established in 1976 and the introduction of the Neuromod 3700, a deep brain stimulator used to suppress chronic pain, and the ESI, a device used to treat lateral spinal sinuses. Pisces, the first spinal stimulator for the treatment of chronic pain in the extremities, was also introduced.
In 1977, Medtronic established its heart valve business unit. It introduced the Medtronic "Hall" mechanical valve. The product was named after Dr. Karl Victor Hall, who was the first to invent and implant this mechanical valve. The prosthesis has no welds, no joints, and no bends, so valve function is not impaired.
Earl Bakken continued to be involved with Medtronic as Chairman of the Board of Directors, and in 1976, Medtronic made an external search for a Chairman and Chief Executive Officer.Dale R. Olseth, a former investment banker and Chairman and Chief Executive Officer of Tonka Corporation, became Medtronic's Chairman and Chief Executive Officer. That same year, Medtronic identified a technical problem with one of its pacemakers and issued the first major recall of that type of pacemaker. Medtronic's share of the U.S. market declined from 60 percent to 40 percent as competition grew with the proliferation of new medical device companies.
Globally, Medtronic maintains 35 percent of the pacemaker market outside the United States. This was matched by Medtronic's strengthening its presence around the globe. Medtronic opened its Latin American headquarters in Sao Paulo, Brazil, in 1971 and its European headquarters in Paris a year later. Direct sales began in Japan, and Medtronic established manufacturing facilities in Puerto Rico, Canada, and France. by the end of the 1970s, Medtronic's total sales exceeded $200 million. 1981-1990 In the 1980s, Medtronic got off to a good start. 1981 saw the introduction of Versatrax, the first pacemaker that sensed and paced both the atria and ventricles simultaneously. 1981 also saw the introduction of Itrel, the world's first fully implantable, programmable neurostimulation device. --Itrel, for the treatment of chronic pain.
However, the U.S. healthcare landscape changed, and private insurers began paying fixed fees for medical devices and procedures, causing a decline in pacemaker implantations. To make matters worse, along with the 1985 confirmation of a problem with one model of Medtronic's pacing electrode lead, Medtronic's sales experienced their first decline in 23 years.
In an effort to cut costs, Medtronic reduced its workforce and closed two divisions, the one that made nuclear medicine imaging equipment and the one that made stress testing and cardiac monitoring. Medtronic also sold its St. Anthony plant and moved its headquarters to the Rice Greek plant, consolidating sales, marketing, and engineering into one.
In 1985, Medtronic again made headlines when it introduced the world's first single-chamber frequency response pacemaker. Until then, single-chamber pacemakers had typically operated at a fixed frequency - about 70 beats per minute - regardless of the body's activity level or blood demand.The Activitrax comes with a miniature sensor that detects changes in pressure from muscle activity or physical activity, and the pacemaker's electrical circuitry converts these signals into electrical signals. to adjust the pacing frequency. This feature improves the patient's vitality, which fixed-frequency pacemakers cannot do. Expanding the Business
In 1985, Medtronic welcomed a new chairman and chief executive officer, Winston R. Wallin, a member of Medtronic's board of directors and a former vice chairman of Pillsbury, and Wallin set forth a strategy of diversification of the company's products as a major goal of his efforts.
Over the next decade, Medtronic sought to strengthen its position as a leader in medical technology. between 1985 and 1988, Medtronic's research and development expenditures increased from $37 million to $75 million. With the development of the implantable cardioverter-defibrillator and the world's first SynchroMed implantable, programmable drug delivery system, Medtronic expanded its product offerings into two new areas.
The pacing business progressed just as rapidly, most notably with the 1987 introduction of Medtronic's CapSure electrode leads, which are coated with steroids at the tip to help reduce inflammation in myocardial tissue.
At the same time, Medtronic acquired and merged more than a dozen medical technology companies, allowing Medtronic to move into entirely new areas. These acquisitions included, among others, the cardiovascular division of Johnson & Johnson (biological heart valves and cardiopulmonary devices); Versafle Delivery Systems (coronary angiography catheters and guide technology) and Bio-Medicus (centrifugal blood pumps).
In 1980, Medtronic acquired Vitatron, a pacemaker manufacturing company based in the Netherlands, and in 1987 established the Bakken Research and Development Center in Maastricht, the Netherlands. This demonstrated Medtronic's commitment to strengthening its global market. Medtronic also established Bakken Education Centers in India, Japan and other countries to serve physicians and distributors of Medtronic products.
By 1990, Medtronic had successfully transformed itself from a single-product company to a diversified, international medical technology company through internal growth and strategic acquisitions.
Forging Success
When William W. George joined Medtronic in 1989 as its new president and chief operating officer, the company had sales of nearly $755 million. More importantly, new products have contributed significantly, with new products accounting for 40 percent of total sales in two years, up from 14 percent six years earlier.
Medtronic continues to execute on Win Wallin's diversification strategy. Medtronic soon acquired TUR, a German pacemaker company; CardioRhythm, a manufacturer of devices for diagnosing and treating arrhythmias. and DLP, a company specializing in the manufacture of cardiac surgical cannulas. Throughout the 1990s, Medtronic expanded the customers and patients it served globally by acquiring or investing in a large number of medical technology companies. Through strategic acquisitions, Medtronic established its leadership position in the areas of cardiac rhythm management and neurological disease treatment. 1991-2000 By 1999, Medtronic had evolved from a single-product company focused on cardiac pacing therapies to a diversified global enterprise. Products and technologies cover: treatment of chronic heart disease; correction of degenerative spinal conditions; treatment of Parkinson's disease; control of chronic pain; severe ankylosis and tremor; and treatment of cerebral palsy and spinal injuries.
Innovative products have continued to emerge, resulting in Medtronic's $4 billion in annual revenues in 1999, and some of the major advances in this decade are as follows: The introduction and ongoing refinement of the cardioverter defibrillator for the treatment of sudden cardiac death.
Continued improvement of pacing therapy with the introduction of smaller, more powerful and longer-lasting products.
The introduction of small, portable, universal programmable devices. To ensure continued reliable service of Medtronic implanted products in major hospitals around the world.
Launched implantable neurostimulators and implantable drug delivery systems for the treatment of chronic pain, ankylosis, tremor and Parkinson's disease.
Catering to the industry's trend toward minimally invasive cardiac surgery, we design and manufacture products that shorten procedures, hospital stays, and faster recovery.
Dramatic improvements in surgical devices and balloon angiography include a variety of stenting systems that significantly reduce reoperations.
Expansion into various areas such as spine and orthopedic surgery, peripheral vascular, external defibrillation, and ENT through acquisitions of market-leading companies. The market in the 1990s was characterized by; rapidity, volatility and a global demand for medical technology.
Many hospitals joined national purchasing organizations or joined with other large healthcare organizations to complete purchases, which dramatically changed the purchasing decision-making model.
In response to these changes, Medtronic has championed the Cardiovascular Alliance, a healthcare alliance of leading hospitals, physicians and Medtronic dedicated to improving healthcare outcomes and reducing healthcare costs.
Collaboration with Norvatis on intrathecal baclofen treatment technology will dramatically improve the quality of life for patients with ankylosing symptoms. With the advent of the information explosion in the 1990's, in 1995, the Internet became an important information link between companies, patients, customers, and physicians. As part of its latest e-commerce strategy, Medtronic joined an alliance with Healtheon/WebMD, a leading customer-focused healthcare information network, to provide online access to Medtronic products and treatments. Information about Medtronic products and treatments is available online.
With a growing range of products, the company has expanded, employing 8,000 people worldwide in 1991 and more than 22,000 by the end of the 1990s. All employees **** work together to improve the lives of more than 1.5 million patients through their imaginative design, testing, and manufacturing of the medical devices and therapeutic programs provided by them.
Ongoing employee training keeps employees up-to-date with the special knowledge and skills they need to be successful, and in 1997 and 1999 Medtronic was named one of Fortune Magazine's 100 "Best Companies to Work For" in the United States for 1998-1999 and 2001-2002. In 1997 and 1999 Medtronic was also recognized by Fortune Magazine as one of the nation's 100 "Best Companies to Serve" for 1998-1999 and 2001-2002.
In 1999, Medtronic employees and customers worldwide*** celebrated Medtronic's 50th anniversary. At the same time, Medtronic unveiled a new corporate logo - a reclining human figure - and a new slogan - "Medical Technology for Life. The new logo emphasizes Medtronic's philosophy of "Precision, Leadership, Passion" and "Medical Technology for Life".
Patient-Centered Care
In 2001, Art Collins, who had served in a number of chief executive positions at Medtronic, was selected as Medtronic's new Chief Executive Officer to lead Medtronic into the 21st Century, poised for new growth and innovation, with a new vision for the future: Medtronic, the world's leading medical technology company, is committed to providing patients with access to care for chronic diseases. It is committed to providing patients with lifelong solutions for the treatment of chronic diseases.
This new vision is in response to changes in society: the number of people with chronic diseases is growing and the cost of their care is increasing. In the major countries where Medtronic operates, aging is a growing problem, and information is becoming more readily available to patients, mostly via the Internet, indicating that people are better informed and more involved in their own care than ever before.
To better meet the new demands of "patient-centered" care, Medtronic is integrating medical technology with information technology, as exemplified by the CareLink network system, which allows patients to download information about their implanted defibrillators at home and send it over the Internet to their physicians for analysis. The CareLink network frees patients from face-to-face doctor visits, allowing them to be followed and treated even when traveling.
Diabetes and heart failure, two global diseases that affect the lives and health of millions of people, are becoming Medtronic's focus in the new century. Through the 2001 acquisitions of MiniMed and MRG, Medtronic became the global leader in insulin infusion pump technology.The InSync and InSyncICD systems are the first therapeutic options for the treatment of heart failure.
Biotechnology and biologics are becoming one of the most important products at the turn of the century, and our product, the InFuse Bone Prosthesis, contains human bone morphogenetic proteins that help achieve better, faster spinal fusion by inserting into the spinal space. The Medtronic Health Care Center, which opened in Beijing on August 8, 2010, is Medtronic's first health care center in the world and the first patient care center in the medical device industry. The mission of Medtronic's Health Care Center is to "brighten lives through innovation and build health together".
In November 2008, Medtronic Medical Technology (Services) Shanghai signed a long-term cooperation agreement with the Ministry of Health's Research Center for Cardiovascular Disease Prevention and Control (NCCD) to prepare for the establishment of the NCCD Patient Education Base ---- and Medtronic Health Care Center. The purpose of the center is to disseminate the knowledge of prevention and treatment of cardiovascular disease and its related risk factors, high-tech therapies and rehabilitation guidance to patients, their families and the public. It raises the public's awareness of self-care and advocates a healthy lifestyle.
The center is conveniently located at No. 6 Fuxingmenwai Avenue, West Chang'an Street, adjacent to the China Workers' Home. It not only provides targeted education on diseases and therapies for patients and their families, but also sets up a therapy display area to provide a new mode of science education for the public to understand disease knowledge and prevent diseases. The center's daily operations include: lectures on chronic diseases, therapy presentations, regular patient education sessions, large-scale clinics and educational activities, community outreach, and regular newsletters.
The Medtronic Health Care Center serves as a bridge between doctors and patients, between hospitals and medical technology. The center provides convenient and effective health education for the public, especially those with high prevalence factors of chronic diseases. The center provides a convenient and effective way to educate the public, especially those with high risk factors for chronic diseases, to help them stay away from diseases, improve their quality of life, and regain their health!