3M Medical Device Company Intelligence Report

SUMMARY

3M, headquartered in St Paul, Minnesota, USA, is a diversified global company with a market presence in healthcare, safety, electronics, telecommunications, industrial, consumer, office and other markets. The company has operations in more than 60 countries and its products are sold in nearly 200 countries worldwide. 3M has 12 sales offices in 10 US states and operates 61 manufacturing facilities in 23 US states. Internationally, 3M has 185 sales offices and operates 75 manufacturing and converting facilities in 28 countries.

The focus of this report is the company's healthcare business, 3M Health Care, which serves the medical, surgical, pharmaceutical, dental, health information and other markets worldwide. Major products include medical and surgical supplies, skin health and infection prevention products, pharmaceuticals, drug delivery systems, dental and orthodontic products, health information systems, microbiology devices and wound care products.

3M Health Care is 3M's largest business, accounting for 21% of the company's total revenue in fiscal 2004. During the year, 3M Health Care generated a 6% increase in revenue to US$4.2 billion. However, sales rose by just 2%, excluding exchange rate effects, as results were negatively impacted by comparisons with 2003 when the business generated sales from pharmaceutical and drug delivery agreements not repeated in 2004.

This report provides a complete review of the company's activities, from its origins to its latest corporate activity, including mergers and acquisitions, agreements, divestitures, major purchasing contracts and litigation. Sections are included on products, international activities and R&D, as well as a full, in-depth five year financial analysis.

TABLE OF CONTENTS

• OVERVIEW
• CORPORATE HISTORY
• FOUNDATION
• RECENT CORPORATE NEWS
• MERGERS AND ACQUISITIONS
• Info-X
• Vantage Health's Medical Record Coding Software
• 3M Inter-Unitek and ESPE Dental
• Ruffing IT
• NAMSA's Rapid Sterilisation Indicator Product Line
• Hyatt, Imler, Ott and Blount
• PACE Health Management Systems
• Datacron
• Health Market International's Software Products
• PyMaH
• MINORITY INVESTMENTS
• MicroDose Technologies
• DIVESTITURES
• 3M Powered Surgical Instrument Business
• 3M Orthopaedic Implant Business
• 3M CardioVascular Systems
• Imation
• Internal Stapling Business
• Diagnostics Systems Unit
• Multi-lumen Catheter Product Line
• Cochlea Implants Business
• Hip and Shoulder Implant Business
• AGREEMENTS
• Siemens Medical Systems
• HealthShare Technology
• HealthGrades
• Berlex Laboratories
• Alltracel Pharmaceuticals
• CareAdvantage
• IVAX
• LanVision Systems
• Noteworthy Medical Systems
• Meta Health Technology
• Outcome Concept Systems
• American Health Information Management Association
• Manis & Ryan
• Clinical Reference Systems
• StorCOMM
• McNeil Consumer Healthcare
• eWebCoding
• Ceradyne
• Fazzi Associates
• Nobel Biocare
• Forest Laboratories
• Sentillion
• AutoData Systems
• MedicaLogic
• CHPS Consulting (Center for Health Policy Studies)
• Advanced Medical Solutions
• SUPPLY AGREEMENTS
• US Department of Defense Military Health System
• Novation
• Skin Staplers
• Marketplace@Novation
• Adhesive Drapes and Tapes, Transparent Dressings and Surgical Prep Kits
• Catholic Healthcare West
• Maryland Health Services Cost Review Commission
• Centres for Medicare & Medicaid Services
• US Air Force Medical Operations Agency
• Premier
• Triad Hospitals
• Consorta
• Surgical Drapes, Wound Dressings and Casting and Splinting Products
• Sterilisation Equipment
• HealthTrust Purchasing Group
• Innovatix
• Shared Services
• Neoforma
• Health Services Corporation of America
• Broadlane
• INDUSTRY CONSORTIUMS
• Global Healthcare Exchange
• LITIGATION
• Respirator/Mask/Asbestos Litigation
• Breast Implant Litigation
• CORPORATE STRUCTURE
• 3M Health Care
• 3M Drug Delivery Systems
• 3M Health Information Systems
• 3M Consulting Services
• 3M ESPE
• 3M Unitek
• 3M Medical Specialties
• STRATEGIC FOCUS
• PRODUCTS
• DENTAL PRODUCTS
• Clinpro Sealant
• Cement Products
• RelyX Temporary Cement
• Luting Cement
• 3M ESPE RelyX Luting Cement
• RelyX Luting Plus Cement
• 3M ESPE Ketac-Cem Permanent Glass Ionomer Luting Cements
• 3M ESPE RelyX Luting Liquid
• 3M ESPE Vitremer Luting Cement Fast Set 3504L and 3504P
• Dental Carboxylate Luting Cements
• Resin Cements
• RelyX Unicem Self-Adhesive Universal Resin Cement
• 3M ESPE RelyX ARC Adhesive Resin Cement
• 3M ESPE RelyX Ceramic Primer
• 3M ESPE RelyX Veneer Cement
• 3M ESPE Cement Accessories
• Bonding Products
• Bonding Adhesives
• 3M ESPE Adper Bonding Adhesives
• 3M ESPE Concise Enamel Bond
• 3M ESPE EBS-Multi Adhesive System
• 3M ESPE Etchants
• Bonding Accessories
• Direct Restorative Products
• Filtek Supreme Plus Universal Restorative
• 3M ESPE Filtek Supreme Plus Flowable Restorative
• 3M ESPE Filtek Supreme Universal Restorative Line
• 3M ESPE Ketac-Endo Aplicap Glass Ionomer Root Canal Sealer
• 3M ESPE Filtek P60 Posterior Restorative
• Filtek Supreme Universal Restorative
• 3M Filtek Z250 Universal Restorative
• 3M ESPE Z100 Restorative
• 3M ESPE Ketac-Molar Aplicap Glass Ionomer Restorative
• 3M ESPE Photac-Fil Quick Aplicap Light-Cured Glass Ionomer Restorative
• 3M ESPE Ketac-Silver Silver Glass Ionomer Cement Restorative
• 3M ESPE Filtek Flow Flowable Restorative
• Direct Restorative Accessories
• 3M ESPE RotoMix Rotational/Centrifugal Capsule Mixer
• Indirect Restorative Products
• 3M ESPE Paradigm MZ100 Block for CEREC
• 3M ESPE Lava All Ceramic System
• 3M ESPE CoJet Silicate Ceramic Surface Treatment System
• Provisional Products
• Resin Materials
• 3M ESPE Protemp 3 Garant
• 3M ESPE Protemp II Bis-Acryl Provisional Material
• 3M ESPE Polycarbonate Crown Sets
• Preformed Crowns
• 3M ESPE Gold Anodized Crowns
• 3M ESPE Iso-Form Crowns
• 3M ESPE Stainless Steel Crowns
• 3M ESPE Pedodontic Anterior Transparent Strip Crown Forms
• 3M ESPE Unitek Stainless Steel Crowns
• Preventative Products
• 3M ESPE Clinpro Sealant
• 3M ESPE Clinpro Prophy Angles
• Impression System Products
• 3M ESPE Directed Flow Impression Tray
• Impression System Hardware
• 3M ESPE Dispenser
• 3M ESPE Pentamix 2 Automatic Impression Material Mixing System Unit
• 3M ESPE Upgrades Dispensing System for Express Impression Material
• Impression Materials
• 3M ESPE Impregum PentaSoft Quick Step Impression Material
• 3M ESPE Dimension Garant L Syringe Impression Material
• 3M ESPE Dimension Penta H Quick Tray Impression Material
• 3M ESPE Imprint II Penta Heavy Body Impression Material
• 3M ESPE Imprint II
• 3M ESPE Imprint II Quick Step Impression Material System
• 3M ESPE Imprint Bite Registration Material
• 3M ESPE Impregum Penta HB/LB
• 3M ESPE Impregum Penta Soft Medium Body
• 3M ESPE Express System
• 3M ESPE Express Registration Material
• 3M ESPE Position Penta Impression Material
• 3M ESPE Ramitec Impression Material
• 3M ESPE Ramitec Penta Impression Material
• Finishing and Polishing Products
• Sof-Lex Finishing Brush and Sof-Lex System Kit
• 3M ESPE Sof-Lex Contouring & Polishing System
• Dental Infection Prevention Products
• Attest
• 3M ESPE Autoclave Steam Indicator Tape
• Face Masks
• Curing Lights
• Elipar FreeLight 2 Curing Light
• 3M ESPE Elipar 2500 Curing Light
• Curing Light Accessories
• ORTHODONTIC PRODUCTS
• LavaSystem 3.0 Software
• Arnett/McLaughlin Interactive Treatment Analysis
• Non-Metal Brackets
• Clarity Metal Reinforced Ceramic Brackets
• Transcend Series 6000 Ceramic Brackets
• Metal Brackets
• Mini Uni-Twin Bracket
• Victory Series Miniature Metal Bracket System
• Victory Series Low Profile Brackets
• Victory Series Gold System
• 3M Unitek Miniature Twin Brackets
• Glance
• Mini Dyna-Lock
• Level Anchorage System
• Twin Torque Bracket System
• Advanced Light Square
• 4-Stage Bracket System
• Composite II Bracket System
• New Torqued Bracket System
• Minnesota Integrated Bracket System
• Standard Edgewise Brackets
• Lightwire Bracket System
• Buccal Tubes
• Archwire Systems
• Unitek Beta III Titanium Archwire
• Unitek Nitinol Classic Archwire
• Unitek Nitinol Heat-Activated Archwire
• Unitek Nitinol Super-Elastic Archwire
• Unitek Nickel-Titanium Super-Elastic Archwire
• Permachrome Archwires
• HI-T II Twist Flex
• Blue Flexiloy
• Bonding Adhesives
• Sondhi Rapid-Set Indirect Bonding Adhesive
• Transbond Light Cure Adhesives
• Transbond Plus Self Etching Primer
• Transbond MIP Moisture Insensitive Primer
• Ortholux LED Curing Light
• Ortholux XT Visible Light Curing Unit
• Unitek Multi-Cure Glass Ionomer Band Cement
• Bands and Attachments
• Victory Series Narrow Contoured Molar Band
• Intraoral Products
• Forsus Fatigue Resistant Device
• Forus Class II Correctors
• Forsus Nitinol Flat Springs
• AlastiK Easy-To-Tie Ligatures
• AlastiK MiKro-StiK System
• Unitek MIA Mobile Intraoral Arch
• Extraoral Products
• Series 5 Facebows
• Traction Release Headgear
• NOW Snap-Way System
• Hand Instruments
• Polar Bear XLT Ice Instrument
• Unitek Buccal Tube Converting Cap Removing Pliers Kit
• Unitek Prestige Series Orthodontic Instruments
• MEDICAL SUPPLIES
• Biomedical Electrodes
• 3M Red Dot Repositionable Electrode
• 3M Red Dot Diaphoretic Monitoring Electrodes
• Neonatal/Infant/Paediatric Monitoring Electrodes
• Resting Monitoring Electrodes
• 3M Red Dot Traditional Style Monitoring Electrodes
• 3M Red Dot Wet Gel Monitoring Electrodes
• Other Supplies
• Electrosurgical Patient Plates
• 3M Universal Electrosurgical Pads 9100 Series
• 7100 Series
• 1100 Series
• Casting and Splinting Products
• Splinting Systems
• 3M Primacast Splint
• 3M Scotchcast Conformable Splint
• 3M Scotchcast Custom Length Splint
• 3M Scotchcast One-Step Splint
• Casting Tapes
• Scotchcast Poly
• Scotchcast 2
• Scotchcast Plus
• 3M Scotchcast Soft Cast
• Cast Padding and Stockinet
• 3M Synthetic Cast Padding
• 3M Synthetic Cast Stockinet
• Casting and Splinting Accessories
• 3M Canvas Cast Shoes
• 3M Splint Scissors
• 3M Reinforcing Strips
• Skin Health Products
• Adhesive Bandages
• 3M Nexcare Active Strips Flexible Foam Bandages
• 3M Nexcare Comfort Strips Bandages
• Dressings
• 3M Foam Dressings
• 3M Tegasorb Hydrocolloid Dressings
• 3M Medipore +Pad Soft Cloth Adhesive Wound Dressing
• 3M Microdon Non-Adherent Sheeting
• Tegaderm Transparent Dressings
• Tegaderm Plus Transparent Dressings
• Tegaderm +Pad Adhesive Wound Dressing
• Tegaderm HP Transparent Dressing
• Tegaderm IV Dressings
• 3M Tegagel Hydrogel Wound Filler and 3M Tegagel Hydrogel Wound Filler with Gauze
• 3M Tegagen HI and HG Alginate Dressings
• Tegapore Wound Contact Material
• Skin Care Products
• 3M Cavilon No Sting Barrier Film
• Self-Adhering Foam and ColdHot Packs
• 3M Reston Self-Adhering Foam Products
• 3M Nexcare Reusable ColdHot Pack
• 3M Coban Self-Adherent Wrap
• 3M Durapore and Transpore Surgical Tape
• 3M Medipore H Soft Cloth
• 3M Medipore Soft Cloth
• Wound Closure Products
• Adhesive Wound Closure Strips
• Steri-Strip Wound Closure System
• Steri-Strip Adhesive Skin Closures
• Steri-Strip Antimicrobial Skin Closures
• Steri-Strip Blend Tone Skin Closures
• Steri-Strip Elastic Skin Closures
• Steri-Strip Stacking Rack
• Skin Staplers and Removers
• 3M Precise Disposable Skin Staple Remover
• 3M Precise Multi-Shot Disposable Skin Stapler System
• 3M Precise PGX Disposable Skin Stapler
• 3M Precise Vista Disposable Stapler
• Personal Protection Products
• Respirators
• 3M 1860/1860S Health Care N95 Particulate Respirator and Surgical Mask
• 3M Airmate Powered Air Purifying Respirator
• Masks
• 1819 High Fluid-Resistant Surgical Mask
• 3M Aseptex Fluid Resistant Moulded Surgical Masks
• 3M Standard Tie-On Surgical Mask
• 3M Tie-On Surgical Mask
• 3M High Fluid Resistant Procedure Mask
• 3M Earloop Fluid Resistant Face Mask
• 3M Standard Earloop Mask
• Sterilisation Products
• Low Temperature Sterilisation Equipment
• 3M Ethylene Oxide Monitor
• 3M EO Abator
• 3M Steri-Vac Gas Sterilizer/Aerators
• 3M Steri-Vac Aeration Cabinets
• 3M Steri-Gas Cartridges
• 3M Steri-Vac Drying Cabinet
• Pack Control Products
• Equipment Control Products
• 3M Comply (SteriGage) Steam Chemical Integrator Test Pack
• 3m Comply Bowie-Dick Test Packs
• 3M Comply Glutaraldehyde Monitors
• Pentamix Mixing Unit
• Exposure Control Products
• 3M Comply Chemical Indicator Labels
• 3M Comply Dry Heat Chemical Indicator
• 3M Comply Ethylene Oxide Indicator Tapes
• 3M Comply Indicator Rolls for Ethylene Oxide Sterilisation
• 3M Comply Indicator Tape Dispensers
• 3M Comply Instrument Protectors
• 3M Comply Steam Indicator Tape
• 3M Comply Steam Indicator Tape for Disposable Wraps
• Load Control Products
• 3M Attest Biological Indicator Incubators
• 3M Attest Biological Indicator Monitoring Starter Kit
• Record Keeping Products
• Surgical Drapes
• General Drapes
• 3M Steri-Drape Half/Large and Utility Sheets
• 3M Steri-Drape Instrument Pouch
• 3M Steri-Drape Irrigation Pouch
• 3M Steri-Drape Isolation Bag
• 3M Steri-Drape Minor Procedure Drape
• 3M Steri-Drape Pouches with Ioban 2 Incise Film
• 3M Steri-Drape Roll Prep Drape
• 3M Steri-Drape Towel Drapes
• 3M Steri-Drape Tube Organiser
• 3M Steri-Drape Urology Drape
• 3M Steri-Drape U-Drapes
• 3M Steri-Drape Wound Edge Protector
• Incise Drapes
• Ioban 2 Antimicrobial Incise Drapes
• Steri-Drape Incise Drapes
• Steri-Drape 2 Incise Drape
• 3M Steri-Drape Neurology Drapes
• Cardiovascular/Cardiac Catheterisation Drapes
• 3M Steri-Drape Cardiovascular Sheet with Ioban 2 Incise Film
• 3M Steri-Drape Femoral Angiography Drapes
• Obstetrics and Gynaecology Drapes
• 3M Steri-Drape Caesarean-Section Sheets and Pouches
• Steri-Drape Under Buttocks Drape with Pouch
• 3M Steri-Drape Gynaecology Drapes
• Ophthalmic Drapes
• Orthopaedic Drapes
• 3M Steri-Drape Arthroscopy Drapes
• 3M Steri-Drape Patient Isolation Drapes
• 3M Steri-Drape Extremity Drapes
• Equipment Cover Drapes
• 3M Steri-Drape C-Arm Drapes/Fluoroscope Drapes
• 3M Steri-Drape 1100 Camera/Laser Drape
• 3M Steri-Drape 1011 Large X-Ray Cassette Drape
• 3M Steri-Drape Banded Bags
• Surgical Clippers
• 3M Surgical Clippers by Remington and Clipper Blade Assembly
• 3M Surgical Clippers with Pivoting Head and Clipper Blade Assembly
• Stethoscopes
• 3M Littmann Cardiology STC Stethoscope
• 3M Littmann Electronic Stethoscope Model 4000
• 3M Littmann Cardiology III Stethoscope
• 3M Littmann Master Cardiology Stethoscope
• 3M Littmann Classic II S.E. Stethoscope
• 3M Littman Classic II Paediatric and Infant
• 3M Littmann Lightweight II S.E. Stethoscopes
• 3M Littman Master Classic II
• 3M Littmann Select Stethoscope
• 3M Littmann Teaching
• 3M Littmann Sound Analysis Software Version 2.0
• DRUG DELIVERY PRODUCTS
• Inhalation Drug Delivery
• Metered Dose Inhalers
• 3M DDS' Marketed Products
• Maxair Autohaler
• QVAR
• MDI Components
• Transdermal Drug Delivery
• Latitude System
• Latitude Duo System
• TDD Components
• 3M CoTran Controlled Caliper Membranes
• 3M Scotchpak Liners
• 3M Foam Tapes
• 3M CoTran Backings
• 3M CoTran Nonwoven Backings
• 3M Scotchpak Backings
• TDD Dispenser
• HEALTH INFORMATION SYSTEMS
• Care Paths Technology
• 3M Advanced Report Writer
• Coding and Reimbursement
• 3M Coding and Reimbursement System
• 3M Codefinder Software
• 3M Clinical Analyzer Software
• 3M DRGfinder Software
• 3M Reimbursement Calculation Software
• 3M HCPCS/CPTfinder Software
• 3M Coding Reference Software
• 3M Coding Reference Plus Software
• 3M APCfinder Software
• 3M Medical Necessity Software
• Classification and Grouping Solutions
• 3M All Patient Refined DRG Software
• 3M All Patient Refined Diagnosis Related Groups Software, Version 20
• 3M APG Software
• 3M APC Grouper Plus Software
• 3M Core Grouping Software
• 3M Clinical Claims Editor (CCE) Software
• 3M Long-term Care Hospital (LTCH) Clinical Analyzer Software
• Physician Coding
• 3M Physician Coding and Reimbursement System
• Revenue Management
• DRG Assurance
• APC Assurance
• APC Oversight
• APC Performance Profile
• 3M Ambulatory Revenue Management Software
• 3M Chargemaster Services
• 3M Ambulatory Revenue Management Software
• Quality and Performance Management
• 3M Health Data Management System
• 3M All Patient Refined DRG Benchmarking Software
• 3M Core Measures Management Software
• 3M Health Record Management Software
• 3M Care Management System
• 3M Quality Management
• 3M Utilization Management
• 3M HDM and InterQual Criteria
• 3M Clinical Risk Grouping Software
• Compliance Solutions
• 3M Audit Expert Inpatient Software
• 3M Audit Expert Outpatient Software
• Computer-based Patient Records
• 3M Care Innovation Expert Applications
• Alert Management Software
• Clinical Data Repository
• Clinical Workstation Application
• Healthcare Data Dictionary
• 3M Enterprise Master Person Index
• Home Health Solutions
• 3M Advanced Compliance Edit Software
• 3M Home Care Management System
• 3M Scheduling System
• 3M Clinical Documentation System for the Point of Care
• 3M Clinical Documentation System for the Office
• 3M UK Health Information Systems
• 3M MEDICODE Encoder
• 3M DialeCT Encoder
• 3M Integroup Software
• 3M Integrity and 3M Integrity Plus Clinical Audit Systems
• 3M Sequent Software
• 3M International Refined DRGs (IR DRGs)
• 3M CaseMix Expert Software
• 3M CODExpert System
• INTERNATIONAL ACTIVITIES
• EUROPE
• France
• Germany
• Poland
• Sweden
• UK and Ireland
• ASIA-PACIFIC REGION
• China
• Japan
• Australia
• MIDDLE EAST
• NORTH AND SOUTH AMERICA
• United States
• Minnesota
• New Jersey
• Latin America
• Brazil
• Mexico
• GLOBAL LOCATIONS
• RESEARCH AND DEVELOPMENT
• RESEARCH ESTABLISHMENTS
• RESEARCH PROJECTS
• Drug Delivery
• Excipients for CFC-Free Inhalers
• Microstructured Transdermal Systems
• Novel MDI Actuators
• Particle Engineering for Inhalation
• Protein and Peptide Delivery by Inhalation
• Fentanyl 7-Day Pain Patch
• RESEARCH AGREEMENTS
• Response Biomedical
• Sepracor
• MicroDose Technologies
• Chiesi Farmaceutici
• Novartis Pharma
• Dolphin Imaging
• FINANCIAL REVIEW
• FINANCIAL INDICATORS
• FINANCIAL HIGHLIGHTS - 3M HEALTH CARE
• COMMENTARY
• First Half of Fiscal 2005
• Outlook
• FISCAL 2004
• Operating Divisions
• 3M Health Care
• Revenue by Segment, 2003-2004 (US$ million)
• Operating Results for the Health Care Division, 2002-2004 (US$ million)
• Global Review
• Sales to Customers by Geographic Area, 2002-2004 (US$ million)
• Operating Income by Geographic Area, 2002-2004 (US$ million)
• Net Property, Plant & Equipment by Geographic Area, 2003-2004 (US$ million)

INDEX OF TABLES

• FINANCIAL INDICATORS
• Revenue by Segment, 2003-2004 (US$ million)
• Operating Results for the Health Care Division, 2002-2004 (US$ million)
• Sales to Customers by Geographic Area, 2002-2004 (US$ million)
• Operating Income by Geographic Area, 2002-2004 (US$ million)
• Net Property, Plant & Equipment by Geographic Area, 2003-2004 (US$ million)

INDEX OF CHARTS

• Fig.1: Percentage of Revenue by Segment, 2004
• Fig.2: 3M Health Care Revenue & Operating Income, 2000-2004 (US$ million)
• Fig.3: Percentage of Revenue by Geographic Area, 2004
• Fig.4: Percentage of 3M Health Care's Sales by Geographic Area, 2004*