, the Minneapolis-based medical-device manufacturer, reported that revenue grew 3% in 2014, but fourth-quarter results were negatively affected by a patent agreement with Edwards Lifesciences over the companies' heart valves.
Medtronic reported that revenue rose to $17 billion
in fiscal 2014, which ended April 25, compared with $16.59 billion in 2013. Net earnings fell 10% to $3.06 billion in 2014.
Revenue rose 2% to $4.56 billion in the fourth quarter of 2014, compared with $4.46 billion in the same period a year ago. Profit in the fourth quarter of 2014 dropped to $448 million, compared with $969 million during the same quarter in 2013.
The fourth-quarter results included a one-time change of $750 million related to the patent agreement with Edwards over transcatheter heart valves as well as a separate product liability settlement for Infuse, the company's bone graft product.
Edwards Lifesciences, an Irvine, Calif.-based maker of heart devices, said Medtronic will pay the company annual royalty payments of at least $40 million based on sales of Medtronic's CoreValve product for eight years.
“We are pleased to reach an agreement that preserves physician choice while also recognizing Edwards' leadership in pioneering the transcatheter heart valves that are chosen most often by physicians worldwide,” Michael Mussallem, Edwards' chairman and CEO
, said in a written statement.
Medtronic also will settle 950 claims related to Infuse. As part of the settlement, the company did not admit liability. The company said in a written statement this month
that it expects a special charge of up to $140 million related to the Infuse settlements.
Medtronic said it anticipates revenue growth between 3% and 5% in 2015.
“There are tremendous opportunities ahead as we transform Medtronic from being primarily a device provider today into the premier global medical technology solutions partner of tomorrow,” Medtronic Chairman and CEO Omar Ishrak said in a written statement. Follow Jaimy Lee on Twitter: @MHjlee