You're watching...
Omar Ishrak, Medtronic chairman and CEO, on the future of the company under ObamaCare.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Exclusive I asked Medtronic CE OO market track.
What exactly is fueling that growth and there's more I would say that the continuing stabilization.
Off the and market so.
Japan had outstanding quarter there were there were up 12%.
Move -- -- -- back -- flow of new product launch of -- -- dubbed a couple of months ago and the outlook there continues to good.
Broad based -- driven primarily by our coronary business so Japan as a stand out.
Can you beat on these numbers as you have done in the past once that special -- against medical device makers kicks in to the affordable health care act people are wondering.
Will that crimp your ability to make money.
Well.
The number of things first to fall -- You know we've known about this -- for awhile.
So our approach has been to focus and things that we can control and so we've been trying to could devise -- spending and investment plan that takes into account the device stacks.
If it's -- no local -- Omar might question it is very obvious have you already started to see it impact.
The way you innovate the way you do research and development the money that you do or don't spent.
I indeed it has because -- You know our spending for next year for example.
Includes.
Bill provision for afford the device stacks and that would be investment that we would make elsewhere.
In either industry should -- new products in clinical trials.
A variety of areas so it does take money away from other areas but again that the outlook to be very issue -- inclusive.
Right let's look forward -- on the innovation.
What -- you pushing forward for now I mean wouldn't that we last spoke in Davos you're talking a lot about.
Different kinds of diabetes or or different kinds of the sort of home therapy options.
What's exciting to right now in your pipeline.
We continue to work gone now.
Along with these -- the artificial pancreas your way in which showed.
Have a lead you into independent diabetics given them manage their diabetes in -- much more automated fashion.
That that would be a breakthrough pump -- get there any incremental steps were excited about it.
Did their areas in -- minimally invasive the heart surgery just four valve replacement if people are.
-- -- That that that process also is gaining traction again available in Europe lot of excitement about it.
We're also looking forward to -- -- at least have to look forward to what may be the fiscal cliff and of course the changes in the dividend taxes.
Would you argue considering have you had any discussions as a pertains to a pretty healthy dividend that you guys have doubled over five years -- Medtronic.
To maybe do a one time special dividend to the before the end of the year before the taxes on dividends go up or perhaps push up the date of the dividend.
-- -- planning to and also do you know we've got other constrains regarding the dividend because.
We have a lot of our cash -- those generated outside the US and that puts a ceiling on how much dividend we can give life give back to -- orders.
Hopefully you have.
Through this reform process to a tax reform -- process so.
They'll be more favorable regulations regarding overseas.
And income.
And when and if that happens.
You know we look at our dividend again but right now -- really constrained by the fact that.
A lot of -- cash -- is generated outside the US.
With the president reelected four more years so would you like to get his ear and if so if you -- at what would you tell President Obama about business and about what you do.
Well a number of things you know first to fall -- Move more quickly in in health -- towards -- people value scheme I think that in the end is extremely important.
And as opposed to paper procedure for the overall health of health care and matching the cost to -- and then value of health care.
The second there is there really the one that I touched upon -- Get tax reform done hopeless with.
May be some sort of territorial tax.
And hopeless with -- income that's generated outside the US are you optimistic about business in America.
I am I think I think there are opportunities in the US.
I think we need to get through so immediate challenges.
Agree on a ball forward.
But there's lots of opportunity here.
In health care is specifically.
And we intend to participate in that it still the mission with a lot of innovation a lot of expertise and technology.
And I think if you can use it tried not only can can -- Help health care here would we can also participate and then markets around the world.
Omar is -- as the chairman and C electronics while he was talking up another two thirds of a percent for the stocks are looking pretty healthy today clos.
