Medtronic Inc.MDT

Medtronic is the largest medical equipment maker and has sustained approximately 50% share in its core heart devices. It also holds market-leading positions in spinal products and insulin pumps.

Medtronic has taken bold steps to purchase emerging technology to treat atrial fibrillation. If these ablation therapies prove effective, Medtronic could dominate another potentially large market.

Medtronic often finds novel ways to apply familiar technologies--like using the implantable electronic-stimulation technology in pacemakers to address overactive bladders, chronic pain, and symptoms from advanced Parkinson's disease.

Medtronic's recent purchase of CoreValve puts it in a strong position to enter the attractive transcatheter heart valve market that is poised to take off in the next two to three years. Read more 

As smaller firms introduce new insulin pumps, Medtronic may face a stiffer fight to maintain its leadership in this arena.

Medtronic's devices are subject to Medicare reimbursement rates; proposed cuts in those rates could hurt profitability.

In the last few years, Medtronic has issued a number of voluntary recalls of some of its products, one of which concerned premature battery failure for ICDs and the most recent associated with leads for ICDs. Although the fatalities associated with these problems has remained extremely small, recalls generally require time and effort and can hurt doctors' confidence in the products.

If the Justice Department investigation of off-label Infuse usage finds that Medtronic sales reps have engaged in any untoward marketing practices, the company could face penalties.

There isn't much evidence-based data to support some of the invasive spinal devices that Medtronic sells. New clinical data could easily suggest the superiority of other therapies, which would substantially hurt Medtronic's leading position in spinal devices. Read more