Cardiac medical device maker AtriCure Inc.’s (NSDQ:ATRC) sees big opportunity in a new "hybrid" procedure that treats atrial fibrillation with a combination of ablation from inside and outside of the heart.
Wall Street Beat
Abiomed Inc.’s (NSDQ:ABMD recent good fortune may make it a prime acquisition target, according to Wall Street analysts.
Boston Scientific Corp. (NYSE:BSX) garnered two upgrades and one downgrade from analysts this week, creating a roller-coaster effect in stock prices for the medical device giant.
The company’s stock has been closing at higher and higher values all week, but slid nearly 4 percent in midday trading Friday after an analyst at wealth management service UBS downgraded the stock from buy to neutral.
Wall Street analyst Rajeev Jashnani said the stock isn’t likely to trade higher until BSX can report sustained revenue.
Boston Scientific Corp. (NYSE:BSX) got some more good news from Wall Street, getting a lift from Moody’s Ratings Service, which raised the company’s outlook from stable to positive.
The rating’s service cited the company’s austerity measures under CEO J. Raymond Elliott and the recent news that Cordis Corp. would be exiting the stent business.
Omar Ishrak will begin his era at Medtronic Inc. (NYSE:MDT) by trying to boost the company’s sagging stock price, initiating a program to buyback some 75 million shares of MDT stock and increasing the cash dividend the company pays to shareholders by 8 percent.
Medtronic has seen its share price drop by 11 percent since hitting a high water mark for 2011 of $43.20 on May 18, a week after Ishrak was named the company’s new chief executive officer.
Teleflex Inc. (NYSE:TFX) says it’s a pure-play medical device company now that it’s re-classified its cargo systems business as a discontinued operation, marking the culmination of a years-long transformation.
The Limerick, Pa.-based company also said it paid off $125 million worth of debt ahead of schedule, as it positions itself to grow via acquisition.
Updated 5:15 p.m.
Moody’s Investors Service changed its outlook on Medtronic Inc. (NYSE:MDT) from stable to negative on concerns that two of the company’s core businesses were in a prolonged market slump.
Impending federal excise taxes, downward pricing pressure and declining volumes of big-ticket procedures constitute a triple threat that will drive the medical device industry to consolidate, according to a PricewaterhouseCoopers report.
The total value of health care deals over the past 12 months rose 40 percent, according to the consulting giant’s “U.S. Mid-Year M&A Outlook.” That trend is likely to continue, the report predicts.
One of the biggest players in the coronary stent market is getting out of the business.
Cordis Corp., one of the medical device arms at Johnson & Johnson (NYSE:JNJ), announced the decision this morning, saying it will shut down development of its next-generation Nevo drug-eluting stent and stop making the Cypher DES line altogether by the end of 2011.