Feb 17 (Reuters) - Medtronic Plc plans no cuts in research and development or its sales staff as the medical device maker begins the process of integrating its $49.9 billion acquisition of Covidien Plc, Chief Executive Omar Ishrak said on Tuesday.
“Our commercial sales force and R&D are not going to be affected,” Ishrak said in an interview.
The company expects to generate $850 million in annual cost reductions over the next three years from the deal.
Savings will be found in consolidating its corporate headquarters as well as regional administrative offices and training centers where there is overlap around the globe, Ishrak said. Human resources and purchasing are additional areas where duplication can be eliminated.
Medtronic, whose devices include implanted heart defibrillators, insulin pumps and spinal implants, acquired surgical systems maker Covidien to expand the range of products it can offer to hospitals, reduce its global tax burden and improve access to its cash generated outside the United States.
The company on Tuesday reported better-than-expected third-quarter earnings, sending its shares up more than 3.5 percent. (Reporting by Susan Kelly; Editing by Bernard Orr)