Developing new devices: Medtronic’s top priority after acquiring Covidien

The first and most important strategy of the combined company is to develop new devices by bringing together the technology platforms of both the companies, leading to reduction in device prices. Saving USD850 million over the next three years through cost cuts in operations, real estate, finance and human resources is also a part of the plan. The first year after integration will be focused on the elimination of redundancies, while the point of focus will be to sustain productivity changes for the following two years. Medtronic’s market development and scale up expertise in combination with Covidien’s experience to meet clinical needs with surgical tools and hospital services will ensure rapid growth and a dominant global presence for the combined company.