CareFusion (NYSE:CFN) shares are down slightly today after the medical device company said it would be late in filing its annual report with the SEC, which triggered a delisting warning from the New York Stock Exchange.
CareFusion said it’s negotiating with the securities regulator over how to account for leases of its Pyxis medicine dispensing devices.
"Once this process is complete, the company will assess any impact on its financial statements and file its [annual report] as soon as practicable," according to a press release. "The matter does not affect CareFusion customers or the underlying fundamentals and cash flows of the company or its Pyxis business."
The San Diego-based company has 6 months to comply with the NYSE rules by filing the annual report with the SEC.
CFN shares were down 0.7% to $27.75 as of about 1:30 p.m. today.
For sale: Cambridge Heart
Cambridge Heart (NSDQ:CAMH) said it hired Benning Associates, a Boston-based boutique investment bank, to assist in exploring the proverbial "strategic alternatives" – corporate-speak for a sale.
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Covidien reveals FY2013 outlook
Covidien (NYSE:COV) expects sales in fiscal 2013 to rise between 3% and 6%, with adjusted operating margins of 22%-23%, CFO Charles Dockendorff told investors in New York this week.
Medical device sales are forecast to rise 4%-7% and 1%-4% for pharmaceutical sales. CEO Jose Almeida said the spin-out of the pharma unit is on track for a mid-2013 close.
"Despite the challenging external environment, we are delivering a very solid performance in 2012," Almeida said in prepared remarks. "We continue to make investments to expand our capabilities, particularly in emerging markets, and to capitalize on opportunities we are capturing from increased penetration of our broad product portfolio, particularly in vascular and energy.
"Our key initiatives – broaden innovation focus, aggressively manage our portfolio, capitalize on emerging markets opportunities and optimize spending to provide for investments in innovation and growth – will be the drivers of our future performance," he added. "We will use our strong cash flow to fund business expansion, while remaining committed to return 50% of our free cash flow to shareholders through dividends and share repurchases."
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Tandem Diabetes drums up $36M
Tandem Diabetes raised $36.4 million of a hoped-for $50 million equity round for its t.slim portable insulin pump. Tandem began shipping the device, which won FDA clearance in November 2011, earlier this month. Last year the company raised $12 million in a debt and options offering.
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Analyst: HeartWare could gain market share on consignment
HeartWare International (NSDQ:HTWR) could gain 20%-30% share in the left ventricular assist device market once its next-generation heart pump wins a nod from the FDA, according to Leerink Swann analyst Danielle Antalffy.
That stake could be boosted even further if HeartWare shifted its sales model to allow smaller centers to purchase the devices on consignment, Antallffy wrote in a note to investors today.
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Analogic, Baxter hit 52-week highs
Analogic (NSDQ:ALOG) and Baxter (NYSE:BAX) shares posted yearlong highs this week.
ALOG shares reached $79.20 apiece today after the medical imaging device maker crushed Wall Street’s expectations with its 4th-quarter earnings. BAX shares topped out at $61.21 today.
Analysts’ ups and downs
- Analogic (NSDQ:ALOG): Benchmark Co. reiterates Buy rating, raises price target from $82 to $90.
- Becton Dickinson & Co. (NYSE:BDX): Moody’s Investors Service puts investment-grade ratings on review over cash flow, debt concerns.
- Covidien (NYSE:COV): Leerink Swann maintains “outperform” rating, $64 price target; Jefferies maintains "buy" rating, boosts price target to $66, raises estimates; Citigroup reiterates Buy rating, raises price target from $64 to $68; Barclays Equity Research maintains "overweight" rating, raises price target from $62 to $64.
- Edwards Lifesciences (NYSE:EW): Northland Securities initiates coverage at “underperform” rating, $72 price target.
- Haemonetics (NYSE:HAE): Benchmark initiates with “buy” rating, $89 price target.
- Hologic (NSDQ:HOLX): Leerink Swann maintains Outperform rating, $25 price target.
