* Reiterates fiscal 2010 revenue outlook of 5-8 pct growth
* Says industry growing in low to mid-single digits
CHICAGO, June 2 (Reuters) - Medtronic Inc MDT.N, the world’s largest stand-alone medical device maker, on Tuesday said it expects to preserve and expand its share in markets ranging from pacemakers and defibrillators to stents and spinal devices.
“Our goal is to protect and grow our leadership position in all of our markets,” Medtronic Chief Executive William Hawkins said at the start of an analyst day that was web cast.
Hawkins confirmed the company’s growth target for fiscal 2010 revenue of 5 percent to 8 percent on a constant-currency basis. That compares with overall growth in the medical technology industry in the low to mid-single digits this year.
Shares of the Minneapolis-based company, which disappointed investors two weeks ago with a sales outlook many analysts viewed as too conservative, were up 1.8 percent at $35.55, near a new six-month high.
Hawkins said the company’s priorities remain on sustainable long-term growth through innovation, improved operating margins, disciplined capital allocation and alignment of the organization for execution.
“Our current focus is on driving internal growth supported by strategic technology acquisitions that leverage our global footprint,” he said.
The company said it plans to fund research and development spending at roughly 10 percent of annual revenue.
Hawkins said Medtronic’s business has held up well even as its hospital customers found access to capital difficult and more people put off doctor visits and elective procedures due to unemployment and loss of health insurance. He predicted it would remain resilient in a new environment marked by health care reform but acknowledged there will be challenges.
“The questions around tax reform and the uncertainty around health-care reform have weighed heavily on our industry and on Medtronic,” he said.
Medtronic lost market share in implantable heart defibrillators, its largest business, after the 2007 recall of its Fidelis lead that connects the devices to the heart.
The company said its goal is to stabilize its position and regain share.
“From a share standpoint, Fidelis had a bigger impact than we thought it was going to have,” said Pat Mackin, president of Medtronic’s cardiac rhythm disease management business. “We’ve seen that settle out. I think our stability is back now, and we’re going on offense.” (Reporting by Susan Kelly; editing by Gunna Dickson)