"The company is making these changes to help offset pressures from challenging macroeconomic conditions, regulatory and reimbursement pressures, and the new medical device tax," according to a regulatory filing.
Batesville, Ind.-based Hill-Rom also said it’s taking a $10 million to $13 million hit this year on tangible and intangible impairments, meaning a total charge of $19 million to $22 million for 2012.
Hill-Rom joins Stryker (NYSE:SYK) and Zimmer (NYSE:ZMH) in linking layoffs with the med-tech tax, a 2.3% levy on all U.S. sales of medical devices slated to begin next year. Earlier this month, Zimmer said it plans to offset the entire burden posed by the tax in 2013, in part by laying off about 170 workers. Stryker said late last year that it will cut 5% of its workforce due to the tax, and industry lobby AdvaMed has estimated that the levy will cost the med-tech sector about 11% of its jobs.
AngioDynamics drops $5M on Microsulis
AngioDynamics (NSDQ:ANGO) said it paid $5 million to acquire a 14.3% stake in microwave ablation developer Microsulis Medical Ltd., in return for exclusive overseas distribution rights to the Accu2i pMTA microwave ablation system and an exclusive option to "buy" Microsulis. Read more
Kips Bay switches NASDAQ markets
The NASDAQ stock exchange granted Kips Bay Medical‘s (NSDQ:KIPS) request to move from its Global Market to the NASDAQ Capital Market "to take advantage of the Capital Market’s lower listing requirements." Read more
Luna Innovations, Intuitive Surgical extend pact
Luna Innovations NSDQ:LUNA) and Intuitive Surgical (NSDQ:ISRG) extended a development deal through 2012 to integrate Luna’s shape and position sensing technology into Intuitive’s surgery robots. Read more
CRO Cetero files for bankruptcy after FDA probe
Contract research organization Cetero Research filed for bankruptcy after an FDA probe into allegedly falsified data caused the company’s "liquidity position to become severely constrained" and some lenders declared default due to the "apparent violation of applicable health laws and regulations." Read more
NASDAQ warns NeuroMetrix
NeuroMetrix (NSDQ:NURO) said the NASDAQ stock exchange warned it of a possible de-listing after its stock price moved below the exchange’s $1-per-share minimum price requirement. Read more
Report: Six players dominate the EMR market
A sextet of major players – Cerner Cerner (NSDQ:CERN), McKesson McKesson (NYSE:MCK), Siemens Siemens (NYSE:SI), GE Healthcare GE (NYSE:GE), Epic and Allscripts (NSDQ:MDRX) – dominates the market for electronic medical records, according to Kalorama Information. Read more
- EDAP aims to drum up $6M
- Relievant Medsystems closes $30M Series D round
- Vuzix defers debt payment
- Bioceptive seeks $200k for IUD device
- BodyMedia lands $3M
- Bio2 Medical raises $14M Series B round
- Shine Medical raises $5M on the way to $11M
- Allergan (NYSE:AGN): Citigroup increases price target from $94 to $110, maintains "buy" rating.
- Cardiovascular Systems (NSDQ:CSII): Benchmark Co. initiates coverage with "speculative buy" rating, $15 price target.
- Edwards Lifesciences (NYSE:EW): JP Morgan maintains "neutral" rating; Citi maintains "buy" rating, $84 price target.
- Insulet (NSDQ:PODD): Piper Jaffray initiates with "neutral" rating, $21 price target.
- McKesson (NYSE:MCK): Goldman Sachs raises estimates through 2014, maintains "buy" rating.
- Opko (NYSE:OPK): Ladenburg Thalmann maintains "buy" rating, $8.50 price target.
- Smith & Nephew (FTSE:SN): Investec downgrades from "buy" to hold, cuts price target from £6.63 to £6.60.
- St. Jude Medical (NYSE:STJ): Credit Suisse raises price target from $44 to $49, maintains "outperform" rating.
- Synergetics (NSDQ:SURG): Wunderlich Securities maintains "buy" rating, $8 target price.
- Tornier (NSDQ:TRNX): Benchmark Co. initiates coverage at "speculative buy", $31 price target.