Medtronic said that it agreed to pay $408m (£265m) for the California based company Twelve upon closing and $50m (£32.5m) when its products receive CE marking. The twelfth company spun out from the medical device incubator 'The Foundry', hence the name, is currently developing a novel transcatheter mitral valve replacement (TMVR) device. The developers hope to be able to help patients whose “heart's mitral valve fails to close normally, allowing blood to flow backward when the heart contracts,” Medtronic states. Currently, there are only limited options available for those patients.$458m (£297.5m) is certainly is a lot of money for a company that hasn’t yet sold a single device, but Medtronic is convinced that the company is worth it. "Upon close, this acquisition will strategically augment our existing capabilities in the transcatheter mitral space, which represents an important growth opportunity for Medtronic," said Sean Salmon, senior vice president at Medtronic. "We have followed the transcatheter mitral valve space closely and firmly believe that Twelve has the most novel technology along with a strong, proven team. The combined strengths of our organizations will significantly accelerate our ability to deliver an exciting and differentiated therapy to patients, physicians and healthcare systems around the world."Medtronic said that it would integrate the company’s product line into its coronary and structural heart division within the Cardiac and Vascular Group.About MedtronicMedtronic is composed of six main business units which develop and manufacture devices and therapies to treat more than 30 chronic diseases, including heart failure, Parkinson's disease, urinary incontinence, Down's syndrome, obesity, chronic pain, spinal disorders, and diabetesCardiac rhythm disease managementThe cardiac rhythm disease management (CRDM) is the oldest and largest of Medtronic's business units. Its work in heart rhythm therapies dates back to 1957, when co-founder Earl Bakken developed the first wearable heart pacemaker to treat abnormally slow heart rates. Since then, CRDM has expanded its expertise in electrical stimulation to treat other cardiac rhythm diseases. CRDM has also made an effort to address overall disease management by adding diagnostic and monitoring capabilities to many of its devices. An independently operating Dutch pacemaker manufacturer Vitatron, acquired by Medtronic in 1986, is now a European subsidiary of the Medtronic CRDM unit. Medtronic and Vitatron pacemakers are interrogated and programmed by Medtronic Carelink Model 2090 Programmer for Medtronic and Vitatron Devices, using separate interfaces.In 2007, Medtronic recalled its Sprint Fidelis product, consisting of the flexible wires, or leads, which connect a defibrillator to the interior of the heart. The Sprint Fidelis leads were found to be failing at an unacceptable rate, resulting in unnecessary shocks or a failure to administer a shock when needed; either can be lethal. The scope of this problem continues to be a matter of research. Studies since the recall, disputed by Medtronic, suggest the failure rate of already-implanted Sprint Fidelis leads is increasing exponentially. Medtronic liability in this matter is limited by various court decisions.Spinal and biologicsSpinal and Biologics is Medtronic's second largest business, and Medtronic is the world leader in spinal and musculoskeletal therapies. In 2007, Medtronic purchased Kyphon, a manufacturer and seller of spinal implants necessary for procedures like kyphoplasty.In May 2008, Medtronic Spine agreed to pay the U.S. government $75 million to settle a qui tam (whistleblower) lawsuit alleging that Medtronic committed Medicare fraud. The company was charged with illegally convincing healthcare providers to offer kyphoplasty, a spinal fracture repair surgery, as an inpatient rather than outpatient procedure, thereby making thousands more in profits per surgery.A "special report" by writer Steven Brill in Time showed that, according to Medtronic's quarterly SEC filing of October 2012, the company has on average a 75,1% profit margin on its spine products and therapies.CardiovascularMedtronic's therapies in this business span the major specialties of interventional cardiology, cardiac surgery, and vascular surgery. The products are used to reduce the potentially debilitating effects of coronary, aortic, and structural heart disease.NeuromodulationProducts include neurostimulation systems and implantable drug delivery systems for chronic pain, common movement disorders, and urologic and gastrointestinal disorders.DiabetesMedtronic Diabetes is the diabetes management manufacturing and sales division of Medtronic, based in Northridge, California. The original company, Minimed Technologies, was founded in the early 1980s by Alfred Mann and spun off from Pacesetter Systems in order to design a practical insulin pump for lifelong wear. Most devices at the time were either too large or impossible to program and extremely unreliable. The release of the lightweight, menu-driven MiniMed 500 series changed the landscape, and was a major factor in bringing insulin pump usage to the mainstream. In 1996, the minimed was redesigned by the innovation consulting RKS Design to look more flashy, more elegant, and resemble a beeper; the friendliness of the device boosted adoption rate and sales increased by 357%. In the early 2000s Medtronic purchased Minimed to form Medtronic Minimed.On 11 May 2009, Medtronic announced it had chosen San Antonio, Texas, for the location of its new Diabetes Therapy Management and Education Center. The company announced that it expected 1,400 new jobs would be created to staff the 150,000-square-foot (14,000 m2) facility.Surgical technologiesO-arm Surgical Imaging System. Federal Center of Neurosurgery in Tyumen, 2013The Surgical Technologies business designs and manufactures products for the diagnosis and treatment of ear, nose, and throat (ENT) diseases and cranial, spinal, and neurologic conditions. It also encompasses a surgical navigation division that designs "StealthStation" systems, software and instruments for Computer Assisted Surgery (CAS) and a special intraoperative X-ray imaging system known as the O-arm Imaging System. Many of these products are used for minimally invasive surgical procedures.Technology safetyJay Radcliffe, an independent security researcher, presented a speech at the BlackHat 2011. He revealed a security vulnerability in the Medtronic brand insulin pump, allowing an attacker remote control of that pump. Medtronic responded by assuring users of the full safety of their devices.In 2008, a team of computer security researchers was able to take remote control of a Medtronic cardiac implant. The team, using an unused implant in a lab, was able to not only control the electrical shocks delivered by the defibrillator component, but also glean patient data from the device.