MEDTRONIC PULLS DEVICES FROM U.S. MARKET; MOVE COULD BENEFIT COMPETITORS

Medtronic's Physio-Control business has suspended U.S. shipments of external defibrillators and other products from its Redmond, Wash., facility in a move that could allow rival devicemakers to gain market share.

The suspension, announced Jan. 16, came in response to quality system concerns on the part of regulators and the firm. Medtronic did not specify what the concerns were.

"The troubles at Physio-Control, the No. 1 manufacturer of external defibrillators, will significantly delay -- if not derail -- Medtronic's plans to spin off Physio as a separate, publicly traded company," RBC Capital Markets analyst Phil Nalbone said in a Jan. 17 research note.

Furthermore, as "the No. 2 player" in the external defibrillator market, Zoll Medical could benefit from Medtronic's troubles, Nalbone said. Cardiac Science and Philips Electronics could also gain market share, he added.