(AOF) – Medtronic is expected to rise in the pre-market on Wall Street after the presentation of 1st quarter results above expectations and the raising of its outlook for 2024. Adjusted quarterly earnings per share came to 1.20 dollars against 1 $.11 expected, up 6% year-on-year. Turnover reached 7.70 billion dollars over the period, against 7.57 billion expected, up 4.5%. Annual adjusted earnings per share for 2024 are now expected between $5.08 and $5.16, compared to $5 to $5.10 announced at the end of May.
“We are pleased with a strong start to our fiscal year, having delivered another quarter of mid-single-digit growth,” said Geoff Martha, president and chief executive officer of Medtronic. “Our strong results were broad-based, with each of our four segments delivering 6% organic revenue growth. We also continue to make great strides in our overall transformation designed to deliver sustainable growth and create value. shareholder value.”
AOF – LEARN MORE
Find out more about the Pharmacy sector
Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in financing by venture capital for start-ups. These companies are therefore obliged to carry out redundancy plans. Added to this is a much more restrictive regulatory framework. First, in the United States, the measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of the participants. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemicals) or 13 years (biologicals), with discounts that could range from 35 to 60% for biotechs. Similarly, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.