Orthofix to restate past financials on revenue snafu | Wall Street Beat

MassDevice.com Wall Street Beat

Orthofix (NSDQ:OFIX) said an audit of its books is prompting it to restate its financial results for 2011, 2012 and Q1 2013 after discovering revenues that were improperly recognized.

The ongoing review by the Orthofix board of directors’ audit committee means the Lewisville, Texas-based orthopedics company will be late in filing its results for the 2nd quarter, according to regulatory filings.

Orthofix said that "certain revenues recognized during 2011 and 2012, upon further evaluation, should not have been recognized or should not have been recognized during the periods in which they were recognized," according to the filings.

Sign up to get our free newsletters delivered straight to your inbox

"Management continues to assess the company’s disclosure controls and procedures and internal control over financial reporting for current and prior periods. Management does not expect to reach a final conclusion on the effectiveness of the company’s internal control over financial reporting and disclosure controls and procedures until completion of the restatement process, but expects to report in future or amended filings the existence of 1 or more material weaknesses in the company’s internal control over financial reporting relating to the restatement," according to the filings.

Orthofix said it doesn’t know when the audit will be finished or when it expects to release its new financials.

The news sent OFIX shares down 3.2% to $23.09 each as of about 12:45 p.m. today.

 Some hedge funds shed Abiomed, others double down
Hedge fund activity in shares of Abiomed (NSDQ:ABMD)
is down 33%, but some of the remaining hedge investors in the medical device company are increasing their positions in the stock.
Four funds dropped ABMD last quarter, including Broadfin Capital and its $5.4 million stake and Renaissance Technologies’ $3.1 million share. Eight other funds are still in the stock, including Palo Alto Investors ($43.9 million), CR Intrinsic Investors ($14.9 million), Millennium Management, Citadel Investment Group and Adage Capital Management.
Read more

 Mazor Robotics hits the NASDAQ exchange
Mazor Robotics (NSDQ:MZOR) moved to the NASDAQ stock exchange under the "MZOR" symbol, backed by BNY Mellon as depositary bank.
Read more

 InfuSystem is off the auction block
InfuSystem Holdings (NSDQ:INFU) said it’s abandoned a possible sale of the company and named a new chairman, Ryan Morris, who will succeed Wayne Yetter.
Read more

 Artimplant files for bankruptcy
Personal injury lawsuits filed in the U.S. over its CMC Spacer spine implant forced Sweden’s Artimplant to declare bankruptcy.
Read more

 Analysts’ ups and downs

  • Cardinal Health (NYSE:CAH): UBS Investment Research reiterates "buy" rating, raises price target from $53 to $58.
  • Cardiovascular Systems (NSDQ:CSII): Leerink Swann reiterates "outperform" rating, raises price target to $25 from $20.
  • Cutera (NSDQ:CUTR): Piper Jaffray Cos. downgrades from “overweight” to “neutral” rating, lowers price target to $11 from $12; Sidoti downgrades from “buy” to “neutral” rating.
  • Cynosure (NSDQ:CYNO): Citigroup reiterates "buy" rating, raises price target from $36 to $41; Leerink Swann maintains “outperform” rating, ~$36 valuation
  • Dentsply International (NSDQ:XRAY): Northcoast Research downgrades from “buy” to “neutral” rating.
  • Endo Health Solutions (NSDQ:ENDP): UBS raises estimates, boosts price target to $43 from $41.
  • Fresenius (NYSE:FMS): Societe Generale downgrades from “buy” to “hold” rating.
  • GE (NYSE:GE): TheStreet reiterates “buy” rating.
  • Globus Medical (NYSE:GMED): Leerink Swann reiterates “outperform” rating, raises price target to $21 from $19.
  • Hanger (NYSE:HGR): CJS Securities downgrades from “outperform” to “market perform” rating, $35 price target.
  • Hologic (NSDQ:HOLX): Leerink Swann maintains “outperform” rating, lowers price target to $26 from $27.
  • Hospira (NYSE:HSP): Leerink Swann maintains “market perform” rating, raises price target from $32-$33 to $43
  • ICU Medical (NSDQ:ICUI): Raymond James downgrades from “outperform” to “market perform” rating.
  • ResMed (NYSE:RMD): Deutsche Bank upgrades from “hold” to “buy” rating, raises price target to 83¢ from 71¢.
  • RTI Surgical (NSDQ:RTIX): Canaccord Genuity downgrades from "buy" to "hold" rating, lowers price target from $5 to $3.50.
  • Siemens (NYSE:SI): Zacks downgrades from “neutral” to “underperform” rating, $101 price target.
  • Sirona Dental Systems (NSDQ:SIRO): Barrington Research upgrades from “market perform” to “outperform” rating, $82 price target.
  • SurModics (NSDQ:SRDX): Feltl & Co. upgrades from “buy” to “strong-buy” rating, $31.25 price target.
  • Teleflex (NYSE:TFX): Leerink Swann maintains “market perform” rating, $85 price target.
  • Thoratec (NSDQ:THOR): Northland Capital Partners upgrades from “market perform” to “outperform” rating, raises price target to $42 from $35.
  • Volcano (NSDQ:VOLC): Canaccord Genuity upgrades from “hold” to “buy” rating, raises price target from $21 to $26; Leerink Swann maintains “outperform” rating, $25 price target.
  • Wright Medical (NSDQ:WMGI): Leerink Swann maintains “outperform” rating, increases price target to $32 from $29.

RSS From Medical Design & Outsourcing

  • Athermal laser machining cuts bioabsorbable polymers and more
    A the recent MD&M East trade show in New York, Norman Noble, discussed the capability of athermal laser manufacturer. The company has developed the Noble S.T.E.A.L.T.H. (System To Enable Ablation Laser Technology Haz-free). The athermal laser machining process was developed to create precise features in any material, including bioabsorbable polymers, shape memory metals and other […]
  • Exciting possibilities for metallic glass in the medical device world
    Researchers are exploring the potential of metallic glass as a versatile, pliable material that is stronger than steel, with a bevy of possible medical device applications. Yale University engineers have discovered a unique method for designing metallic glass nanostructures across a wide range of chemicals, a technique that could have applications for everything from watch […]
  • Strong Precision Technologies’ medical divisions to unify under MedTorque brand
    Strong Precision Technologies announced on July 2, 2015, that its two medical divisions will now go to market under a single brand, MedTorque. The move reflects the increasing integration of the division formerly known as Inland Midwest with MedTorque, its sister division in Kenosha, WI. “We will continue providing our customers with the personalized level of service […]
  • Olympus offers next-day product replacement guarantee for medical devices
    Olympus, a medical and surgical procedures solutions company, announced that it is guaranteeing next-day replacements for surgical equipment at no additional charge. Olympus is the first surgical product manufacturer to offer this type of guarantee. The service became available to customers with an Olympus Full Service Agreement earlier this year. “Canceled procedures can be costly for healthcare facilities […]
  • More accurate prediction on prognosis in multiple myeloma from SkylineDx
    SkylineDx, a biotechnology company specializing in the development and commercialization of genetic tests, is launching its MMprofiler assay. This test enables clinicians to more accurately predict the prognosis of patients with multiple myeloma (bone marrow cancer) than traditional methods. The MMprofiler measures the activity of 92 genes which are directly or indirectly related to the […]
  • Flint Mobile swaps card reader for camera, accept mobile payments anywhere
    Flint Mobile, the swipe-free mobile payments app, has significantly expanded its payment management and loyalty capabilities for small, service-centric businesses, like the ones run by on-the-go medical equipment professionals. The toggle-free mobile technology makes the process quite simple for both parties, as all transactions are conducted through the mobile device’s camera without the need of any external […]
  • Should scientists be allowed to genetically alter human embryos?
    Scientists have at their disposal, a way to explore the possible prevention of genetic diseases before birth. But should they? Currently, the most promising path forward involves editing the genes of human embryos, a procedure threaded with controversy. An article in “Chemical & Engineering News” (C&EN), the weekly newsmagazine of the American Chemical Society (ACS), parses […]
  • Tackling chronic sinusitis by addressing underlying factors
    The stuffy noses and sinus pressure of head colds are uncomfortable, but for most people, they go away within days. For those with chronic sinusitis, however, those symptoms and others drag on for weeks. Now scientists are onto a potential new therapy that could address one of the underlying factors associated with the condition. They […]
  • Implantable “artificial pancreas” could help diabetes patients control their blood sugar
    Living with Type 1 diabetes requires constant monitoring of blood sugar levels and injecting insulin daily. Now scientists are reporting in the American Chemical Society (ACS) journal, “Industrial & Engineering Chemistry Research,” the development of an implantable “artificial pancreas” that continuously measures a person’s blood sugar or glucose level and can automatically release insulin as […]
  • Drug Deactivation program roll out to all facilities for safe disposal of unused prescription medications
    Verde Technologies announced that New Brighton-based Meridian Behavioral Health, the largest for-profit substance abuse and addiction treatment group in Minnesota, has become its most recent partner in the deactivation and safe disposal of prescription medications including methadone. Meridian is the first behavioral health group to roll out the Deterra Drug Deactivation System to all 17 […]
  • Lophius Biosciences introduces T-activated ImmunoScan Cocktail
    Lophius Biosciences announced the commercial launch of T-Track ImmunoScan and T-activated ImmunoScan Cocktail. Based on a proprietary and very specific cocktail of stimulants in combination with the Company’s T-activation technology, T-Track ImmunoScan and T-activated ImmunoScan Cocktail specifically target different cell types involved in both the adaptive and innate immune system. T-Track ImmunoScan and the T-activated […]

Leave a Reply