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.
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 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.
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 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.”
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 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

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