1949-1960 In 1949, Earl Bakken and his brother-in-law Palmer Hermundslie founded Medtronic in partnership. The duo's idea began while Earl Bakken was working part-time at Northwestern Hospital in Minneapolis, Minnesota.
Through his wife, who was a medical technician at Northwestern Hospital at the time, Earl Bakken became familiar with the hospital staff. When the hospital staff learned that Earl was an electrical engineering graduate student at the University of Minnesota, they asked him to help repair some of the hospital's medical electronic equipment, because the engineers in the hospital could only repair some heavy medical equipment, but were unable to repair delicate laboratory equipment. . Palmer, a co-founder of Medtronic, designed the first portable, battery-powered external pacemaker.
Earl and Palmer realized their opportunity had come. Earl gave up his graduate studies, and Palmer quit his job at the local lumber mill, and together they founded Medtronic, a company that repaired medical instruments.
Two young men set up their workshop in a 600-square-foot abandoned garage. The walls of the workshop are built from wooden boards used to package refrigerators, while steel bars salvaged from an old local bank serve as window frames. In winter, they rely on an electric blanket and a stove to heat water, while in summer, the rainwater falling from the ceiling serves as their natural air conditioner, and handmade benches and tables serve as their furniture.
Initial progress was not smooth: the first month's turnover was $8, in 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 business grew in services and its workforce grew, Medtronic rented another garage and later owned an apartment building. In the 1950s, more than half of the company's revenue came from selling products produced by other companies. While selling and servicing these products, Earl and Palmer met numerous doctors in the Midwest, including researchers at medical research laboratories. Those researchers often ask Medtronic engineers to help them modify their instruments or design new ones for specific experiments. The company began customizing products for customers and thus began its manufacturing operations.
In the 1950s, although Medtronic produced nearly 100 types of equipment for customers, only 10 of them formed a real product line, including 2 types of external defibrillators, an animal ventilator, and a heart rate monitor. monitor, and a physiological stimulator.
As an initial product, its design is far from exquisite, and its parts are handmade or supplied by local electronics dealers or second-hand markets. People often share a soldering iron or mounting equipment. Quality control is also done by visual inspection. The packaging materials were Sunday newspapers and the 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. This facility was expanded in the late 1960s to a 105,000-square-foot building that houses offices, manufacturing areas, prototype laboratories, a library, and an auditorium for sales training and technical seminars.
By 1962, Medtronic’s product line expanded to 21 types. Its sales also increased from US$180,000 in 1960 to US$500,000. However, the profit outlook was not optimistic. The cost of moving to a new building, increasing marketing expenses, and heavy investment in product research and development increased Medtronic's losses from US$16,000 in 1960 to US$144,000.
Just as it was teetering on the edge of bankruptcy, Medtronic received a $100,000 installment loan from the bank, attracted the attention of venture capital, and cut its workforce. The company also gave up some unprofitable products and shifted its focus to prosthetics and surgical electronic equipment. By 1963, the company's financial operations returned to normal, with annual sales of US$985,000 and a profit of US$73,000. That year, Medtronic sold an average of 100 pacemakers per month, and 20% of its revenue came from overseas.
In 1966, Medtronic purchased relevant patents from Great Batch Chardack Company. These innovations and successful early products enabled Medtronic to experience rapid development in pacing technology in the past decade.
For example, in the mid-1960s, Medtronic manufactured its first transvenous pacemaker. Its pacing leads can be maneuvered through a vein to reach the heart without opening the chest or requiring general anesthesia. In 1967, Medtronic introduced two "on-demand" pacemakers, which prevented the pacemaker's artificial pacing from working against the patient's own heartbeat. These two types of pacemakers, one external and one implantable, can sense the patient's heartbeat and provide pacing only when needed.
Medtronic's product line also includes a vein clearer that delivers high-frequency electricity through a needle-shaped electrode lead to treat varicose veins. Products also include: Peri-Start, a gastrointestinal pacemaker; and pacemakers for infants.
Several studies on non-cardiac pain that began in the 1960s laid the foundation for Medtronic's neurological efforts. Electrical stimulation to suppress pain. Then in 1969, Medtronic launched an implantable back spinal stimulator and brain stimulator.
By 1968, Medtronic's total sales soared to US$12 million, with profits exceeding US$1 million. The number of personnel also increased from 36 in 1962 to 348. In addition, in order to comply with relevant regulations of the U.S. Food and Drug Administration, Medtronic established a purification workshop for the production of implantable devices. The workshop has installed an air purification system and strictly controls temperature and humidity. These have greatly improved Medtronic's product quality and increased production capacity.
As the business grew, the original building was no longer sufficient, so Medtronic moved its manufacturing operations to Rice Greek in Fredly, a suburb of Minneapolis. Medtronic's overseas operations account for about one-third of its total revenue, with Europe accounting for the majority of its overseas operations. In order to better serve the European market, Medtronic established a service center at Amsterdam Schiphol Airport in the Netherlands in 1967. The 24-hour service center provides clinicians with technical information, repairs and tests equipment, and provides sales assistance.
Competitors from Europe compete at prices far lower than Medtronic. In order to cope with this challenge, occupy the European market, and actively explore the African and Middle Eastern markets, Medtronic has established a global branch overseas. company and opened its second production plant in Kerkrade, the Netherlands.
In 1968, in order to gain direct control over global business and unify the company's image externally, Medtronic acquired its agents in Canada. Two years later, Medtronic decided not to renew its contract with Piker International. At the same time, Medtronic began to acquire its major distributors in the United States, thus forming a global direct sales network. 1971-1980 In the late 1960s, Medtronic collaborated with Alcatel of France to design an atomic-powered pacemaker. In 1970, the first human pacemaker was implanted in Paris. This ushered in decades of rapid progress in pacemaker technology.
These advances include: the introduction of wing-shaped electrode leads and spiral electrode leads in 1970. The soft protrusion on the tip of the lead allows the lead to be more reliably fixed to the heart tissue. As for the spiral electrode lead, as its name suggests, the tip of the spiral electrode lead can be screwed into the myocardial tissue. Unlike other electrode leads, it does not cause wounds and does not require suturing.
Medtronic researchers have invested heavily in pacemaker circuit research to reduce pacemaker size while improving and extending its performance. In 1979, these research efforts came to fruition, and Medtronic launched the Byrel AV physiological continuous pacemaker.
Only one year later, Medtronic launched its first multi-programmable pacemaker: Spectrax SX. This pacemaker has 9 adjustable parameters and can be adjusted non-invasively. . In other words, doctors can adjust the pacemaker's settings to meet the patient's needs without surgery.
Growing business units
In the late 1970s, Medtronic began to get involved in other medical fields. The neurological business unit was formally established in 1976, and successively launched Neuromod 3700 (a deep brain stimulator, used to suppress long-term pain) and ESI, a device used to treat the spinal sinuses. Also launched is Pisces, the first spinal stimulator for the treatment of long-term pain in the extremities.
In 1977, Medtronic established its heart valve business unit. and launched the Medtronic “Hall” mechanical valve. The product is named after Dr. Karl Victor Hall, who first invented and implanted this mechanical valve. This artificial prosthesis has no welding, no joints, and no bending, so it will not impair valve function.
Earl Bakken continues to be involved in Medtronic as Chairman of the Board of Directors. In 1976, Medtronic began recruiting for a chairman and CEO. Dale R. Olseth, a former investment banker and chairman and CEO of Tonka Corporation, becomes chairman and CEO of Medtronic. That same year, Medtronic identified a technical problem with one of its pacemakers and issued its first large-scale recall of that type of pacemaker. As the number of new medical device companies continues to increase and competition becomes increasingly fierce, Medtronic's market share in the United States has dropped from 60% to 40%.
Globally, Medtronic maintains a 35% market share in the pacemaker market outside the United States. In response, Medtronic is increasing its presence around the world. Medtronic established its Latin American headquarters in Sao Paulo, Brazil, in 1971, and its European headquarters in Paris a year later. Medtronic started direct sales business in Japan, and Medtronic established production bases 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. In 1981, Medtronic introduced Versatrax, the first pacemaker that could sense and pace both the atria and ventricles. Two years later, Medtronic launched Itrel, the world's first fully implantable, programmable neurostimulation device to treat long-term pain.
However, the medical environment in the United States has changed. Private insurance companies have begun to pay fixed fees for medical equipment and surgeries, resulting in a decline in the number of pacemaker implants. To make matters worse, following the identification of problems with one model of Medtronic's pacing leads in 1985, Medtronic's sales fell for the first time in 23 years.
To cut costs, Medtronic reduced staff and closed two divisions, one that makes nuclear medicine imaging equipment and one that makes stress tests and heart monitoring. Medtronic also sold its St. Anthony facility and moved its headquarters to the Rice Greek facility, consolidating sales, marketing, and engineering into one.
In 1985, Medtronic launched the world's first single-chamber frequency-responsive pacemaker, which again made Medtronic headlines. Until then, single-chamber pacemakers typically operated at a fixed frequency - about 70 beats per minute - regardless of the body's activity and blood demand. Activitrax contains a tiny sensor that detects pressure changes caused by muscle activity or physical activity, and the circuit portion of the pacemaker converts these signals into electrical signals. to adjust the pacing frequency. This feature improves patient vitality in a way that fixed-rate pacemakers cannot. Expanding business
In 1985, Medtronic welcomed a new chairman and CEO, Winston R. Wallin. A member of Medtronic's board of directors and a former vice chairman of Pillsbury, Wallin has proposed diversifying the company's product offerings as a major goal of his work.
Over the next decade, Medtronic sought to strengthen its leadership position in medical technology. From 1985 to 1988, Medtronic's R&D expenses increased from US$37 million to US$75 million. With the successful development of implantable cardioverter defibrillators and the world's first SynchroMed implantable, programmable drug infusion system, Medtronic has expanded its products into two new areas.
The pacing business progressed equally rapidly, most notably with the introduction of Medtronic CapSure electrode leads in 1987. The tips of these electrode leads were coated with steroids to help reduce inflammation of myocardial tissue.
At the same time, Medtronic acquired and merged more than a dozen medical technology companies, allowing Medtronic to enter new areas. These acquisitions include Johnson & Johnson's cardiovascular division (biological heart valves and cardiopulmonary equipment); Versafle Delivery Systems (coronary angiography catheters and guidance technology); and Bio-Medicus (centrifugal blood pumps).
In 1980, Medtronic acquired Vitatron, a pacemaker manufacturing company in the Netherlands, and established the Bakken R&D center in Maastricht, the Netherlands, in 1987. Demonstrating Medtronic's determination to strengthen its global market. Medtronic has also established Bakken education centers in India, Japan and other countries to serve doctors and Medtronic product dealers.
By 1990, through internal development and strategic mergers and acquisitions, Medtronic successfully transformed from a single-product company into a diversified, international medical technology company.
Building Success
When William W. George arrived at Medtronic as its new president and chief operating officer in 1989, the company had sales of nearly $755 million. George was the president of Honeywell's aerospace business unit. Two years later, when he officially became the CEO of Medtronic, Medtronic's revenue had exceeded the US$1 billion mark. More importantly, new products had made a huge contribution to this. , the proportion of new products developed within two years to total sales increased from 14% six years ago to 40%.
Medtronic continues to implement the diversification strategy formulated by Win Wallin. Medtronic soon acquired TUR, a German pacemaker company, and CardioRhythm, a manufacturer of equipment for diagnosing and treating cardiac arrhythmias. and DLP, a company specializing in the manufacture of cardiac surgical cannulae. Throughout the 1990s, Medtronic expanded its services to customers and patients around the world by acquiring or investing in a large number of medical technology companies. Through strategic mergers and acquisitions, Medtronic has established its leadership position in the fields of cardiac rhythm management and neurological disease treatment. 1991-2000 By 1999, Medtronic has developed from a single product company focusing on cardiac pacing therapy to a diversified global company. Products and technologies cover: treatment of chronic heart disease; correction of degenerative diseases of the spine; treatment of Parkinson's disease; control of long-term pain; severe stiffness and tremor; and treatment of cerebral palsy and spinal injury.
Innovative products continue to emerge, bringing Medtronic’s annual revenue to US$4 billion in 1999. In these 10 years, the following major developments have occurred: Launch and continuous improvement of cardioversion for the treatment of sudden cardiac death Vibrator.
Continue to improve pacing therapy and launch products with smaller size, stronger functions and longer lifespan.
Introducing a small, portable and universal programmable controller. To ensure that major hospitals around the world can provide continuous and reliable services for Medtronic implant products.
Introducing implantable neurostimulators and implantable drug delivery systems for the treatment of long-term pain, stiffness, tremor and Parkinson's disease.
Following the trend of minimally invasive heart surgery in the industry, we design and manufacture products that can shorten the surgical process, hospital stay and restore health faster.
Significant improvements in surgical equipment and balloon angiography, including various stent systems that significantly reduce reoperations.
By acquiring market-leading companies, we have expanded our business into various fields such as spine and orthopedic surgery, peripheral vascular, external defibrillation, and otolaryngology. The market characteristics of the 1990s were; rapidity, change, and global demand for medical technology.
Many hospitals have joined national procurement organizations or completed procurement together with other large medical institutions, which has greatly changed the procurement decision-making model.
In response to these changes, Medtronic initiated the Cardiovascular Alliance, which consists of major hospitals, doctors and Medtronic to form a medical alliance dedicated to improving medical outcomes and reducing medical costs.
Collaborate with Norvatis to study intrathecal baclofen treatment technology, which will greatly improve the quality of life of patients with ankylosing symptoms.
With the advent of the era of information explosion in the 1990s, in 1995, the Internet became an important information link connecting companies, patients, customers, and doctors. As part of the latest e-commerce strategy, Medtronic joined forces with Healtheon/WebMD, a leading customer-oriented company. The center's medical information network forms an alliance. Information about Medtronic products and treatments is available online.
As the variety of products continues to increase, the company's scale continues to expand. In 1991, Medtronic had 8,000 employees worldwide. By the end of the 1990s, the number of employees had exceeded 22,000. All employees work together to design, test, manufacture and provide medical equipment and treatment solutions through their imagination, which have improved the lives of more than 1.5 million patients.
Ongoing employee training enables them to promptly master the special knowledge and skills required for the company's success. In 1997 and 1999, Medtronic was also named one of the 100 "most worthy of service" companies in the United States by Fortune magazine in 1998-1999 and 2001-2002.
In 1999, Medtronic employees around the world and their customers*** celebrated Medtronic's 50th anniversary. At the same time, Medtronic launched a new company logo - a lying figure and a new slogan - "Medical Technology, Life Matters." This new logo highlights Medtronic's philosophy of "precision, leadership, and passion" and "medical technology, life matters."
Patient-centered care
In 2001, Art Collins, who had served in various chief positions at Medtronic, was selected as Medtronic’s new CEO. He led Medtronic Entering the 21st century, we are ready for new growth and innovation, while adhering to a new vision for the future: Medtronic is the world's leading medical technology company, committed to providing patients with lifelong solutions to treat chronic diseases.
This new concept is made in response to changes in society: more and more patients with chronic diseases, and their medical expenses are increasing. In the major countries where Medtronic operates, aging issues are increasing and information is increasingly available to patients, mostly through the Internet, indicating that people are more informed and more involved in their own care than ever before.
In order to better meet the new needs of "patient-centered" medical care, Medtronic integrates medical technology and information technology. The best example is the CareLink network system, which patients can download at home. information about their implantable defibrillators and sent to their doctors via the Internet for analysis. The CareLink network frees patients from face-to-face doctor visits, allowing patients to receive follow-up and treatment even while traveling.
Diabetes and heart failure, two major global diseases that affect the lives and health of millions of people, are becoming Medtronic’s focus in the new century. Through the acquisition of MiniMed and MRG in 2001, Medtronic became the global leader in insulin infusion pump technology. The InSync and InSync ICD systems were the first treatment options for the treatment of heart failure.
Biotechnology and biologics are becoming one of the most important products at the turn of the century. Our product InFuse bone prosthesis, which contains human bone morphoprotein, helps achieve better and faster results by inserting into the spinal gap. spinal fusion. The Medtronic Health Care Center opened in Beijing on August 8, 2010. It is Medtronic's first health care center in the world, and it is also the first care center set up for patients in the field of medical equipment. "Innovate to brighten life, and work together to build health" is Medtronic's mission in establishing this center.
In November 2008, Medtronic Medical Supplies Technology (Services) Shanghai Co., Ltd. signed a long-term cooperation agreement with the Research Center for Cardiovascular Disease Prevention and Treatment ("NCCD") of the Ministry of Health to prepare for the establishment of an NCCD patient education base-- --cum Medtronic Health Care Center. Its purpose is to disseminate knowledge on the prevention and treatment of cardiovascular disease and related risk factors, high-tech treatments and rehabilitation guidance to patients, their families and the public. Improve public awareness of self-care and promote healthy lifestyles.
The center is located at No. 6 Fuxingmenwai Street, West Chang'an Street, with convenient transportation, adjacent to the China Employees' Home.
It not only provides targeted education on diseases and treatments for patients and their families, but also sets up a treatment display area to provide a new popular science education model for the public to understand disease knowledge and prevent diseases. The daily business of the center includes: chronic disease knowledge lectures, treatment introductions, regular patient education meetings, large-scale free clinics and educational activities, community education, regular journals, 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 general public, especially those with high risk factors for chronic diseases. Help them stay away from diseases, improve their quality of life, and regain their health!