Edwards CEO Mussallem details U.S. Sapien sales guidance, updates on CoreValve case | Wall Street Beat

MassDevice.com Wall Street Beat

Edwards Lifesciences (NYSE:EW) chairman & CEO Michael Mussallem said the medical device company expects to post U.S. sales of $390 million-$440 million for its flagship Sapien heart valve, adding 200 new sites over the next 2 years to its existing roster of 200 sites.

"The U.S. is off to a good start," Mussallem said yesterday at the J.P. Morgan healthcare conference in San Francisco. "We think this grows for many, many years into the future."

Edwards expects to post sales growth of 13%-16% this year, he said, with earnings-per-share growth of more than 25%. Free cash flow is forecast to reach a new high of $300 million to $340 million, Mussallem said.

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As for Edwards’ long-running battle with Medtronic‘s (NYSE:MDT) CoreValve subsidiary over patents covering the Sapien transcatheter aortic valve implant, the end could be nigh, Mussallem said.

"The odds are pretty substantial here that we’re getting to the end of this," he said, citing an appeals court decision upholding a $74 million judgment in Edwards’ favor. "My guess is that Medtronic tries to execute some kind of strategy so they’re not shut out of the U.S."

Edwards expects to enjoy patent exclusivity until 2016 or 2017, Mussallem added.

 Mako Surgical’s prelims send shares to a new low
Shares of Mako Surgical (NSDQ:MAKO) are down nearly 4% today, to a 52-week low, after the medical device company reported preliminary 4th-quarter and 2012 sales and procedure volumes for its Rio surgical robot system.

Mako, which is expected to reveal preliminary sales and earnings figures at the J.P. Morgan healthcare conference tomorrow, said it sold 15 Rio systems during the 4th quarter and 45 during 2012, for a total installed base of 156 systems worldwide. More than 2,904 Makoplasty procedures were performed during the quarter, up 20% over the 3rd quarter and 29% over Q4 2011.

Wall Street investors were not reassured, however, sending MAKO shares down 8.9% to $11.33 apiece yesterday and down another 4.2% today as of about 12:45 p.m., to $10.85 per share.
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 Orthofix plunges on prelims
Orthofix (NSDQ:OFIX) said it expects 4th-quarter sales of about $112 million and 2012 sales from continuing operations of roughly $462 million, with Q4 adjusted earnings per share of 78¢-83¢ and full-year adjusted EPS of $3.01-$3.06

But The Street, incited by big hits from what Orthofix called "regulatory and macroeconomic conditions" and "sales force turnover" in its spine regenerative stimulation business, sent OFIX shares down 4.5% today as of about 1:30 p.m., to $36.16 apiece.
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 Endologix stays flat after announcing prelims

Endologix (NSDQ:ELGX) said it expects Q4 sales of about $29.2 million and 2012 revenues of roughly $105.9 million, amounting to 25% and 27% year-over-year growth, respectively.

That’s in-line with its prior sales guidance, prompting The Street to keep share prices flat at $14.73 each as of about 1:30 p.m. today.
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 Greatbatch gains on prelims, guidance
Shares of Greatbatch (NYSE:GB) were up sharply today after the medical device company reported strong preliminary Q4 and 2012 results and issued its guidance for the new year.

Greatbatch said its 2012 sales were up 13.5% to about $645 million, with adjusted EPS of $1.75-$1.85, in-line with its prior outlook. Sales this year are forecast to grow between 2% and 5%, with adjusted EPS growth of 7% to 13%.

The Street seemed to like what it heard, sending GB shares up 3.5% to $24.50 each as of about 1:30 p.m. today.
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 Analysts’ ups and downs

  • Abbott (NYSE:ABT): BMO Capital Markets initiates at “outperform” rating, $36 price target; Deutsche Bank downgrades from "buy" to "hold" rating, lowers price target from $70 to $33; Leerink Swann maintains $30 price target, "market perform" rating.
  • AthenaHealth (NSDQ:ATHN):
  • Piper Jaffray & Co. reiterates “overweight” rating, $100 price target.

  • AtriCure (NSDQ:ATRC): Leerink Swann maintains “outperform” rating, ~$10 price target.
  • Baxter (NYSE:BAX): Deutsche Bank maintains "hold" rating, raises price target to $71.
  • Becton Dickinson & Co. (NYSE:BDX): Deutsche Bank maintains "hold" rating, raises price target to $85; Morgan Stanley raises from "underweight" to "equal-weight" rating, removes $68 price target; Piper Jaffray reiterates "neutral" rating, $74 price target.
  • Bruker Corp. (NSDQ:BRKR): ISI Group upgrades from "neutral" to "buy" rating, maintains $19 price target.
  • C.R. Bard (NYSE:BCR): Deutsche Bank maintains "hold" rating, raises price target to $97.
  • Covidien (NYSE:COV): Citigroup reiterates “buy” rating, maintains $64 price target; Goldman Sachs reiterates "neutral" rating, raises price target from $62 to $63.
  • Cynosure (NSDQ:CYNO): Zacks downgrades from “outperform” to “neutral” rating, $25.40 price target.
  • Danaher (NYSE:DHR): ISI Group upgrades from "neutral" to "buy" rating, maintains $64 price target.
  • (NSDQ:DXCM): Leerink Swann maintains “market perform” rating, ~$14 price target.
  • Edwards Lifesciences (NYSE:EW): Deutsche Bank increase price target from $85 to $90, maintains”hold” rating; JMP Securities initiates with "market perform" rating.
  • Globus Medical (NYSE:GMED): Leerink Swann reiterates "outperform" rating, lowers price target from $19-$20 to $17.
  • HeartWare International (NSDQ:HTWR): Leerink Swann reiterates “outperform” rating, $105 price target.
  • Henry Schein (NSDQ:HSIC): ISI Group upgrades from "underweight" to "neutral" rating, sets $84 price target.
  • Hologic (NSDQ:HOLX): Zacks reiterates “neutral” rating, $21 price target
  • Insulet (NSDQ:PODD): Canaccord Genuity reiterates "buy" rating, raises price target from $24.50 to $29.
  • Intuitive Surgical (NSDQ:ISRG): Zacks upgrades from “neutral” to “outperform” rating, maintains $597 target price; Raymond James reiterates "outperform" rating, $620 price target.
  • Mako Surgical (NSDQ:MAKO): Leerink Swann maintains “market perform” rating, $15 price target.
  • Medtronic (NYSE:MDT): Deutsche Bank boosts price target from $45 to $46, maintains”hold” rating; Mizuho upgrades from "neutral" to "buy" rating, sets $49 price target; Oppenheimer reiterates "outperform" rating, maintains $48 price target.
  • Mindray (NYSE:MR): Oppenheimer raises reiterates “outperform” rating, $39 price target.
  • NuVasive Inc. (NSDQ:NUVA): BMO Capital upgrades to “market perform” rating, raises price target to $17.
  • Palomar Medical (NSDQ:PMTI): Zacks lowers from “neutral” to “underperform” rating, sets $8.70 price target.
  • Smith & Nephew (FTSE:SN, NYSE:SNN): Alphavalue downgrades from "sell" to "reduce" rating, raises target price from £5.956 to £6.572.
  • TranS1 (NSDQ:TSON): Barrington Research initiates coverage with $4 price target, “outperform” rating
  • Volcano (NSDQ:VOLC): Leerink Swann reiterates “outperform” rating, $32 price target.
  • Zeltiq (NSDQ:ZLTQ): Goldman Sachs reiterates "neutral" rating, reduces price target from $5 to $4.60.

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