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

  • GlobTek presents its latest level VI AC/DC adapter and connverter
    T-43086-WWVV-X.X-Q Model is an addition to GlobTek’s Level VI compliant GT-43086 family and represents GlobTek’s 6 Watt wall plug-in series of AC/DC adapters (power supplies and chargers) with International Interchangeable blades. GlobTek’s changeable input blade system with individual field replaceable input plugs, including: North America and Japan NEMA 1-15P, Australian, UK BS 1363, European CEE […]
  • Sanmina’s familiarity with FDA gets skin treatment product to market fast
    The medical market for cosmetic devices is booming. However, quickly launching new products to meet demand is becoming more challenging because device manufactures face increased regulatory scrutiny. To help meet regulatory requirements, aesthetic and other medical-device OEMs are partnering with electronics manufacturing services (EMS) companies that also offer expertise with the FDA filings necessary to […]
  • Fluid connectors and quick disconnects for IVD equipment from CPC
    Colder Products Company (CPC) offers thousands of tubing connectors, quick disconnects and fittings for smart fluid handling in IVD and analytical equipment. Non-spill connectors speed testing throughput by eliminating drips, preventing air inclusion and increasing operator safety. Panel mount connectors can be added to existing equipment or bottle caps to provide secure, leak-free connections. Puncture […]
  • 310 Watt desktop medical power supply meets efficiency level VI requirements
    Power Partners releases a new 310 Watt medical grade desktop power supply from their PEAMD Series of AC and DC adapters. The 310 Watt unit is packed for ideal performance inside a compact case measuring 7.8 x 4 x 2 in. with a weight of only 3 lbs. The PEAMD310 Series is approved to the latest […]
  • Saelig introduces Multiple Instrument System MIS4 universal test system
    Saelig Company has introduced the ABI Electronics’ Multiple Instrument Station MIS4, an all-in-one testing tool that provides all commonly required test instruments in one compact programmable hardware module, mounted in a compact case or installed in a PC-drive bay. Controlled by ABI’s sophisticated SYSTEM 8 Ultimate PC software with a simple yet programmable operator interface, […]
  • AssurX announces document management software update for small to mid-size companies in FDA regulated industries
    AssurX, an enterprise quality management, risk and regulatory compliance solution provider, announces the release of the latest update to their AssurX document management software. The document management solution provides a cost-effective solution for small to medium sized companies faced with streamlined operations and is fully compliant for FDA regulated industries. Ideal solution for small to […]
  • Saelig presents new Amplicon Impact-R 1100F series computer
    Saelig Company announces the Amplicon Impact-R 1100F series, a fanless system powered by the Intel ATOM D2550 processor. Configured with a high performance 2.5 in. MLC Solid State Drive (SSD), the Impact-R 1100F series is a silent controller system. With options for multiple serial communication ports, the Impact-R 1100F can offer up seven DB9 connections […]
  • Gerresheimer to acquire Centor
    Gerresheimer AG, a partner to the global pharmacy and healthcare industry, will further extend its pharmaceutical packaging business with the acquisition of Centor. Gerresheimer has reached an agreement with Nemera Development S.A. to acquire 100% of the share capital of Centor US Holding. “Centor is the highly profitable market leader for plastic vials and closures in […]
  • Methods Machine Tools presents the new Nakamura-Tome NTRX-300
    Methods Machine Tools, a developer of precision machine tools and automation, has introduced the new Nakamura-Tome NTRX-300, a multitasking turning center featuring complete parts machining in one operation, with a built-in load and unload automation system and advanced operator recognition management software. The NTRX-300 features true opposing twin spindles: an 8 in. A2-6 25 HP or […]
  • MSC Apex Diamond Python and Smart Midsurface speeds modeling to validation
    MSC Software announced a new release of MSC Apex, the company’s award-winning next generation Computer Aided Engineering (CAE) platform. The MSC Apex Diamond Python release introduces: · The fourth release of MSC Apex Modeler is a CAE Specific direct modeling and meshing solution that streamlines CAD clean-up, simplification and meshing workflow. New in this release is […]
  • Quality Metrics: FDA’s plan for a key set of measurements to help ensure manufacturers are producing quality medications
    Editor’s Note: This article is written by Ashley Boam and Mary Malarkey from the “FDA Voice” blog. Boam is an FDA’s acting Director of the Office of Policy for Pharmaceutical Quality, the Office of Pharmaceutical Quality and the Center for Drug Evaluation and Research. Malarkey is an FDA’s Director if the Office of Compliance and Biologics Quality […]

Leave a Reply