Medtronic to Add Directors After Elliott Becomes Big Shareholder
The medical-device maker also plans to form committees focused on M&A and other growth areas
- Elliott Investment Management is now one of Medtronic’s largest shareholders.
- Medtronic plans to add two new directors and form two new committees after friendly talks with Elliott.
- Medtronic is the largest med-tech company by revenue but is seen as undervalued compared with peers.
Medtronic MDT -0.23%decrease; red down pointing triangle is making changes to its board after Elliott Investment Management became one of its largest shareholders, according to people familiar with the matter.
The activist investor and the medical-device maker have been holding friendly talks around how to boost the company’s valuation and build on ongoing plans to focus on core assets.
The details
Medtronic plans to announce when it reports quarterly results Tuesday that veteran med-tech executives John Groetelaars and Bill Jellison are joining its board as independent directors, the people said. It will also detail the formation of new special committees focused on growth and operations that will include the new directors and be helmed by Medtronic Chief Executive Officer Geoff Martha.
Elliott is now one of Medtronic’s biggest investors, after an engagement led by Elliott partner Marc Steinberg, the people familiar with the matter said. The exact size of the firm’s previously undisclosed stake couldn’t be learned.
Medtronic develops, manufactures and distributes medical devices and therapies that treat more than 70 health conditions, from Parkinson’s to diabetes.
The company, which is based in Ireland but has its operational headquarters in Minneapolis, has a market value of almost $120 billion. Though its shares are up more than 16% so far this year, the company is still seen as undervalued, especially for being the biggest med-tech company globally by revenue.
Medtronic booked more than $32 billion in revenue in 2024. Boston Scientific, with a larger market value of almost $153 billion, reported about $17 billion in sales last year.
One of the new committees will look for so-called tuck-in M&A opportunities, research and development investments and potential divestitures. The other will look for ways to boost earnings growth, the people said.
Medtronic is also now set to host an Investor Day event in mid-2026, at which point the company expects to detail the new committees’ progress, the people said.
The context
Medical-device makers including Medtronic struggled coming out of Covid-19 to meet a rise in demand for procedures that people deferred during the pandemic, while also contending with inflationary pressures.
Medtronic faced additional challenges of its own, including those stemming from a 2021 warning letter from the Food and Drug Administration regarding product safety issues with its MiniMed insulin pumps. That matter has since been resolved.
Lately, Medtronic has focused its efforts on more recent innovations, for example around treating atrial fibrillation, which has been a huge growth spot in the industry. As part of efforts to simplify its portfolio, it planned a separation of its diabetes business into a stand-alone entity.
Elliott, known mostly for its work in tech and energy, has been increasingly active in the healthcare sector. Other investments have included contract drugmaker Catalent and Syneos Health.