Stryker to begin New York layoffs ahead of the medical device tax | Wall Street Beat

MassDevice.com Wall Street Beat

Stryker (NYSE:SYK) is making good on plans to cut more than 100 positions by closing 2 New York manufacturing plants, moves that the company previously attributed to attempts to cut costs ahead of the coming 2.3% medical device tax.

The device maker will shutter 2 plants used by subsidiary Gaymar Industries by the end of 2012, leaving 107 out of work, according to a "WARN" notice filed with the state.

Stryker previously announced the layoffs as part of its larger effort to reduce its worldwide workforce by about 5% in order to cut costs ahead of the federal levy, which takes effect Jan. 1, 2013.

The closings will affect 11 positions at the company’s West Seneca plant and another 96 at the facility in Orchard Park, according to the notice.

The layoffs are set to begin on a rolling basis beginning September 21 and both plants will close officially by the end of the year.

Late last year the Kalamazoo, Mich.-based orthopedic device giant announced layoffs and restructuring efforts to reduce costs by more than $100 million before the tax takes effect in 2013.

Gaymar, founded in 1956, has a third office in Puerto Rico that will remain open. The company didn’t expect an impact on service or delivery operations.

Stryker representatives were not available for comment.

 Olympus mulls new $628M fund-raising round
Olympus (PINK:OCPNY) may launch a $628 million (50 billion yen) funding round to buffer its company coffers, which were drained after the high-profile $1.7 billion accounting scandal exposed by former CEO Michael Woodford, who was sacked mid-October 2011 after only 2 weeks on the job.

The technology giant may seek new funding through capital alliance or through publicly sold shares.
Read more

 Device makers land on Russell indices

Device makers EnteroMedics (NSDQ:ETRM) and Derma Sciences (NSDQ:DSCI) won spots on Russell Indices, used by investment managers and institutional investors as guidelines for investment strategies.

EnteroMedics and Derma Sciences were both added to the Russell 3000 Index of the 3,000 largest U.S. stocks, ranked by market capitalization, and EnteroMedics was also added to the Russell 2000 Index.
Read more

 Biolase justifies stock slide, regains points
Dental devices maker Biolase (NSDQ:BIOL) regained lost points on Wall Street after issuing a press release stating that "there is no fundamental reason for the recent decline in stock price on the Nasdaq exchange."

BIOL shares lost 16.7% in one week from closing at $2.22 on June 15 to closing at $1.85 on June 22. Shares have since regained 9.2%, closing at $2.02 today.

"Biolase has recently experienced what we believe to be an unwarranted weakness in the price of its securities," chairman & CEO Federico Pignatelli said in prepared remarks issued Friday. "With important recent product introductions and a new line of credit giving us ample access to growth capital, we have never been more confident about the company’s prospects.”
Read more

 M&A Roundup

 Analysts’ ups and downs

  • Baxter (NYSE:BAX): RBC Capital lowers price target from $60 to $58, maintains "outperform" rating
  • Edwards Lifesciences (NYSE:EW): Zacks Equity maintains "neutral" rating and $102 price target; Cannacord Genuity maintains "buy" rating and raises price target from $103 to $123;
  • Insulet (NSDQ:PODD): Oppenheimer Holdings maintains "outperform" rating and $24 price target
  • McKesson (NYSE:MCK): Mizuho states "neutral" rating and $99 price target
  • Medtronic (NYSE:MDT) : UBS AG reiterates "buy" rating
  • Shire (NSDQ:SHPGY): Piper Jaffray maintains "overweight" rating, lowers price target from $121 to $103; Deutsche Bank lowers price target from $105 to $93, maintains "buy" rating
  • St. Jude Medical (NYSE:STJ): Cannacord Genuity maintains "buy" rating, raises price target fro m$45 to $50

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