Medtronic: A Timeline of Events
1949:
Earl Bakken and Palmer Hermundslie found Medtronic in a Minneapolis garage as a medical equipment repair service, initially focused on electrocardiogram machines and lab instruments.
Early 1950s:
Medtronic operates on tight margins, with one month reportedly earning only $8 in revenue.
The "garage gang" perseveres, driven by a passion to help others.
Bakken improvises and crafts over 100 custom devices for medical researchers, often using surplus parts. These include primitive defibrillators and cardiac monitors.
1957:
A power blackout in Minneapolis on Halloween night causes pacemakers in a hospital to fail, tragically resulting in the death of one infant recovering from heart surgery.
The following day, Dr. C. Walton Lillehei challenges Earl Bakken to create a battery-powered pacemaker.
Bakken, inspired by a Popular Electronics article, develops a small, battery-operated, wearable pacemaker within a few weeks.
Dr. Lillehei immediately uses Bakken's prototype on a child, successfully keeping their heart in rhythm. This marks the beginning of mobile cardiac pacing.
1958:
News of the wearable pacemaker spreads rapidly, and hospitals begin placing orders.
Medtronic, in partnership with Dr. William Chardack and engineer Wilson Greatbatch, introduces the first implantable pacemaker.
1960:
Medtronic secures exclusive rights to manufacture the Chardack-Greatbatch implantable pacemaker, shifting its focus to developing and selling its own life-sustaining devices.
Orders for implantable pacemakers pour in.
Medtronic moves out of the garage into its first proper headquarters.
A small sales force is hired to cover the United States and Canada.
Faced with financial strain due to heavy R&D spending, Earl Bakken drafts the Medtronic Mission Statement, with the core tenet: "To contribute to human welfare by application of biomedical engineering to alleviate pain, restore health, and extend life."
Bakken starts the annual Medtronic holiday party featuring patient testimonials.
Early 1960s:
Medtronic expands its product line to include heart monitors, defibrillators, and other cardiac support devices.
Annual sales climb to over $500,000 by 1962.
Late 1960s:
Medtronic becomes the leader in cardiac rhythm management, refining pacemakers with improved battery life and reliability.
The company begins exploring applications of electrical stimulation for other medical problems, prototyping early neuromodulators for pain management.
1970s:
Medtronic experiences significant expansion, commanding around 35% of the global pacemaker market by the mid-70s.
Annual sales surpass $100 million in 1975 and $200 million by 1979.
In 1977, Medtronic is listed on the New York Stock Exchange.
The company diversifies into diabetes care, neurosurgery, and orthopaedic/spinal therapy.
Medtronic introduces the Medtronic-Hall mechanical heart valve (1977) and steroid-eluting cardiac leads.
Acquisitions include Medical Data Systems (nuclear imaging equipment, 1978) and Energy Technology (lithium batteries, later Promeon).
Earl Bakken steps down as president in 1974, becoming chairman of the board. He is succeeded by Thomas Holloran and then Dale Olseth as CEO.
The Medtronic Foundation is established in 1979.
The Bakken Society is founded in 1979 to recognise top scientists and engineers.
1980s:
Medtronic continues to refine cardiac rhythm management with programmable pacemakers (Spectrax, 1981) and rate-responsive pacemakers (Activitrax, 1985).
Acquisitions include Biotech (Italy) and Vitatron (Netherlands) in 1986, strengthening its position in rate-responsive pacing and Europe.
Regional headquarters are established in Europe and Latin America, and manufacturing plants open internationally.
Medtronic develops an implantable neurostimulator for chronic pain and collaborates on the world's first deep brain stimulation (DBS) system for movement disorders (1987).
By the end of the decade, Medtronic has six primary business areas beyond pacemakers.
1985:
Winston "Win" Wallin is hired as CEO.
1989:
Earl Bakken retires as chairman of the board.
Early 1990s:
Under Win Wallin's leadership (1985-1991), Medtronic's sales more than triple, exceeding $1 billion by 1991.
Medtronic introduces its first implantable cardioverter-defibrillator (ICD) in 1993.
1991:
William W. "Bill" George succeeds Win Wallin as CEO.
1990s:
Under Bill George's leadership (1991-2001), Medtronic aggressively expands into new therapies through R&D and acquisitions.
The company cultivates a highly engaged workforce and becomes Minnesota's most valuable company.
Medtronic launches the Activa DBS device.
The Spinal Modulation business is boosted by the acquisition of Sofamor Danek.
Early 2000s:
Arthur "Art" Collins takes over from Bill George as CEO in 2001.
Medtronic acquires MiniMed in 2001, entering the diabetes management field with insulin pumps.
Revenues surge past $10 billion under Collins (2001-2007), fueled by major acquisitions like Sofamor Danek and MiniMed.
Medtronic launches the industry’s first remote device monitoring system in 2002.
2007:
Bill Hawkins assumes the CEO role (2007-2011).
Medtronic faces a high-profile recall of its Sprint Fidelis heart device leads.
Hawkins advances innovations like the first transcatheter heart valves.
2011:
Omar Ishrak is appointed CEO – the first person of colour and first external hire to lead the company.
2010s:
Under Omar Ishrak (2011-2020), Medtronic focuses on global expansion and efficiency.
In 2015, Medtronic acquires Covidien for $42.9 billion, nearly doubling its size and broadening its offerings. The legal headquarters move to Ireland in a tax inversion.
Medtronic introduces the Micra leadless pacemaker (2016) and the MiniMed 670G automated insulin dosing system (2016).
The Infuse bone graft controversy leads to investigations and settlements.
Acquisition of Mazor Robotics (spine surgery robotics, 2018).
Medtronic becomes the market leader in TAVR (transcatheter aortic valve replacement) by 2019.
2020:
Geoff Martha becomes CEO after Ishrak's retirement.
Medtronic recalls around 322,000 MiniMed insulin pumps due to a safety issue.
During the COVID-19 pandemic, Medtronic open-sources a ventilator design and significantly increases its own ventilator production.
Launch of the MiniMed 780G system in Europe.
Early 2020s:
Medtronic's Hugo™ Robotic Assisted Surgery (RAS) system performs its first patient procedures in Europe (2021).
Acquisition of Intersect ENT (sinus implants, 2022).
Medtronic faces global supply chain disruptions and inflationary pressures.
The company undertakes cost-cutting and efficiency programs.
Spinoff of the Renal Care Solutions business into Mozarc Medical (2023) and plans to separate the Patient Monitoring and Respiratory Interventions businesses.
Medtronic reports its products touch over 74 million patients annually by 2023.
Future Outlook:
Focus on integrating artificial intelligence and data science into products and services.
Continued expansion of access to therapies in developing markets through frugal innovation.
More collaboration and open innovation initiatives.
Strategic investments in high-growth areas like cardiac ablation, structural heart, neuromodulation, and surgical robotics.
Maintaining a culture of innovation and agility while upholding the core mission.
