On its fiscal 3 quarter conference call (02/18/20) Medtronic reported that while its business is slowing in Q4 all of its manufacturing operations are still running in China.

The company indicated that while procedure volume is likely slowing things could quickly ramp back up when the situation normalizes.

Regarding the coronavirus, our top concern is the health and well-being of our employees in China and across the globe. We have activated response teams in China, the Asia Pacific region and globally, and we remain vigilant in monitoring the virus and taking action as necessary. All of our manufacturing operations are up and running in China. We’re committed to helping the Chinese government and Chinese physicians address this crisis. As the Chinese healthcare system is focused on containing the spread of the virus, hospitals in China have experienced a slowing of medical device procedure rates, and we are seeing procedure delays. We do expect this to have a negative impact on our fourth-quarter financial results. But given the fluidity of this situation, the duration and magnitude of the impact are difficult to quantify at this time. Now turning to our product pipeline.

Matt Miksic — Credit Suisse — Analyst

Hi. Thanks for taking the question. So I just have one on coronavirus and one on sort of the Symplicity Spyral timeline and post the data at ACC. So on corona, I understand it’s a little bit early to put a finer point on the impact for Q4, but if you could maybe give us some sense of what the major moving parts are.

I think we have about $2 billion in China revenue round numbers, an approximately kind of an annual run rate there. Obviously, it’s a moving target, but things like — would an impact in Q4 likely, based on what you know now, sort of come back in early Q — how transitory is that impact? And then on Spyral, just maybe walk through for us the timeline of what happens after off med and what that looks like as you continue to develop that program.

Omar Ishrak — Chairman and Chief Executive Officer

OK. Let me take the coronavirus question first. First of all, we’re pretty clear about what our China business is. It’s roughly 7% of our global business, so you can do the estimate there.

The variables right now — one variable is that we’ve got to get our factories up and running so that we can supply different places in the world including China, and that is actually progressing well. But the main factor driving the number there will be the procedure uptake in China. China was in a complete shutdown mode for the first half of February, and they’re just beginning to start. And even now, even in places like Beijing and others, procedures are only just beginning.

It’s too early to tell how they will ramp up through the rest of the quarter. We know that in Hubei province, for example, obviously, it shut down, but that’s only 5% of China. But the rest of China, in places like Beijing and Shanghai, right now, there are procedure delays. In addition to that, a lot of physicians are being asked to actually go and help with the virus.

And so there are many dynamics here that are really difficult to predict now. Once things stabilize, there could well be a ramp back up. And because people need the procedures, they will get them at some point. When that happens is very difficult to predict right now.

Product Launch Comments

As we look forward, we’re excited about what lies ahead as the investments we’ve made in our product pipeline begin to pay off by accelerating our revenue growth and creating value for our shareholders. We have recently received approval or launched a number of new products that we expect to contribute to our growth going forward. I mentioned earlier the U.S. approval of our Micra AV pacemaker and the launch that is now under way.

We also received U.S. approval for our IN.PACT Admiral AV fistula indication which expands the market potential of our drug-coated balloons. We received U.S. approval and are launching our Stealth Autoguide cranial robotic system.

In Europe, we recently received CE mark approval for our cobalt and crome portfolio of BlueSync-enabled high-power devices, our InterStim Micro rechargeable implantable sacral neuromodulation device and InterStim SureScan MRI leads as well as our Percept PC DBS device with BrainSense technology. And over the next few quarters, we expect approval and launch of a number of additional new products. We expect U.S. approval of the cobalt and crome high-power devices, Reveal LINQ 2.0 insertable cardiac monitor, InterStim Micro and InterStim SureScan MRI leads and our Percept PC DBS device.

We’re also expecting European launch of the MiniMed 780G and our DiamondTemp ablation catheter. Regarding our MiniMed 780G in the U.S., we intend to file our adult clinical data with the FDA in March which will push expected approval beyond the fiscal year-end. In pain stim, we unveiled DTM spinal cord stim last month at the NANS conference and are now training our field force on this novel waveform, with an expected limited launch in Q4 and full launch in Q1. In MITG, we continue to make progress in our soft tissue robotics program.

Last week, we announced the acquisition of Digital Surgery, a pioneer in artificial intelligence and analytics for surgery. They lead the industry with their unique Touch Surgery ecosystem of products including AI that identify surgical steps and instrumentation. These products can be leveraged to provide insight into the procedure time, cost and process to improve surgical care. We’re excited about utilizing the strength and capability of Digital Surgery to advance our minimally invasive and robotic surgery platforms.

We also have a number of important upcoming data presentations, starting with use case data under extreme conditions for our advanced hybrid closed-loop algorithm at ATTD later this week. Next month, ACC will be a big conference for us. Data from our off med renal denervation pivotal trial will be presented as well as data for both low-risk bicuspid and leaflet immobility for our TAVR program. Also, we will share risk stratification data for our TYRX anti-infection product.

And finally, in June, at ADA, we expect to present the U.S. pivotal data for our MiniMed 780G advanced hybrid closed-loop system. This is just some of the near-term highlights from our pipeline. Importantly, we’re continuing to invest in building out a robust long-term pipeline of continuous innovation, invention and disruption.

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