Stung by widening losses, Accuray plans $75M debt offering | Wall Street Beat

MassDevice.com Wall Street Beat

Accuray (NSDQ:ARAY) plans to issue $75 million worth of convertible senior notes as it gears up to restructure its business after a year of widening losses.

The Sunnyvale, Calif.-based medical device company said it will use the proceeds from the offering of debt due Feb. 1, 2018, to shore up its balance sheet.

"Accuray’s purpose for the offering is to strengthen its balance sheet in order to help improve its competitive position," according to a press release. "It intends to use the net proceeds from the offering for general corporate purposes, including investing strategically in expanding its business and new product initiatives."

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

Fiscal 2nd-quarter sales and profits were way off for Accuray, which makes radiation oncology equipment. The company posted losses of $29.2 million, or 40¢ per share, on sales of $77.8 million for the 3 months ended Dec. 31, 2012. That amounts to a 180.8% increase in losses and a 26.9% top-line reduction.

The news sent ARAY shares down nearly 10% today on Wall Street.

 Terumo doubles down on Biosensors stent, despite study failure
Terumo Corp. (TYO:4543) expanded on its deal with Biosensors International (PINK:BSNRY) to co-market the Nobori stent developed by Biosensors in Japan, despite the stent’s failure to demonstrate superiority to Cordis. Corp.’s Cypher Select Plus sirolimus-eluting stent. Biosensors won CE Mark approval in the European Union for its BioFreedom stent late last month.
Read more

 Safeguard Scientifics drops $1M on stake in Sotera Wireless

Safeguard Scientifics (NYSE:SFE) said it spent $1.3 million buying a stake in Sotera Wireless, which is developing the ViSi Mobile wireless monitoring station, part of a $14.8 million round joined by new investor Delphi Ventures and existing investors Sanderling Ventures, Qualcomm Ventures, EDBI, Intel Capital, Cerner Capital and West Health Investment Fund.
Read more

 Micro Interventional Devices round nears $4M
Micro Interventional Devices said it landed $3.5 million of a hoped-for $5 million Series B funding round for its Permaseal device, designed to close incisions in the transapical portion of the aorta without sutures. The round was led by Originate Ventures, joined by existing investor Battelle Ventures.
Read more

 InspireMD reels in $3M

InspireMD, the Tel Aviv-based medical device company that makes the MGuard embolic protection stent, said it reeled in a $3.1 million funding round from a lone, unnamed investor.

Read more

 Analysts’ ups and downs

  • Abbott (NYSE:ABT): Jefferies Maintains "buy" rating, raises price target to $40.
  • AbbVie (NYSE:ABBV): Credit Suisse initiates with "neutral" rating, $37 price target.
  • Allergan (NYSE:AGN): Citigroup increases price target to $124, "buy" rating; Deutsche Bank reiterates "buy" rating, raises price target from $108 to $113; Jefferies reiterates "hold" rating, raises price target from $95 to $100; Jefferies reiterates "hold" rating, raises price target from $95 to $100.
  • Becton Dickinson & Co. (NYSE:BDX): Deutsche Bank reiterates "hold" rating, raises price target from $85 to $89.
  • Cerner (NSDQ:CERN): Jefferies reiterates "buy" rating, raises price target from $82 to $97; Oppenheimer raise price target to $54, "underperform" rating; Piper Jaffray reiterates "overweight" rating, raises price target from $84 to $100.
  • Hologic (NSDQ:HOLX): Bank of America downgrades from "buy" to "neutral" rating, raises price target from $23 to $24; USI Group maintains "strong buy" rating, raises price target from $25.50 to $27.
  • Intuitive Surgical (NSDQ:ISRG): TheStreet reaffirms “buy” rating.
  • Johnson & Johnson (NYSE:JNJ): Credit Suisse downgrades from "neutral" to "underperform" rating, raises price target from $71 to $73.
  • Sirona Dental Systems (NSDQ:SIRO): Jefferies reiterates "hold" rating, raises price target from $95 to $100.
  • Stryker (NYSE:SYK): Credit Suisse downgrades from "outperform" to "neutral" rating.
  • Thoratec (NSDQ:THOR): Leerink Swann maintains “outperform” rating, raises price target to $43 from $40.

RSS From Medical Design & Outsourcing

  • Emuge expands solid carbide thread mill program with new 3XD sizes
    Emuge is now offering an expanded line of Solid Carbide Thread Mills in their popular THREADS-ALL Program, to include new 3XD sizes designed for maximum reach. A total of 17 new sizes have been added, from miniature to standard size tools, providing maximum versatility in a wide range of thread milling applications. The 3XD THREADS-ALL […]
  • Start of helpful humanoid robots? CITEC uses compact LDS component as sensor array
    Editor’s Note: LaserMicronics, a service provider for laser-based manufacturing, has released the whitepaper “Robot hand with a sensitive touch: LDS tactile sensors for sensorimotor skills.” The paper describes a 2014 project from the CITEC department at Bielefeld University in Bielefeld, Germany, where researchers created a tactile sensor resembling a human fingertip. The sensor was then […]
  • Nature meets technology: Festo’s BionicANTs cooperate to solve a common task
    Editor’s Note: Festo, an industrial control and automation company, has released the whitepaper “BionicANTs: Cooperative behavior based on a natural model.” The paper describes the BionicANT, a creation of Festo engineers that duplicates the physical anatomy of its natural counterpart and reproduces the insect’s cooperative behavior. Festo engineers have used the delicate anatomy of an […]
  • Acorn Regulatory streamlines approval process drug-device manufacturers
    Acorn Regulatory, an ISO-certified medical device and pharmaceutical consulting firm, is streamlining procedures for U.S. manufacturers of drug-device combinations with customized programs that successfully overcome challenges in meeting European regulatory approvals. Focusing on small to mid-size companies, Acorn Regulatory has put in place a comprehensive step-by-step process that provides the correct regulatory pathway for medical […]
  • 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 […]

Leave a Reply