Covidien told analysts it sees good things ahead for fiscal 2010, despite a slight hangover from lost oxycodone sales.
CFO Charles Dockendorff said in an investor presentation that the Mansfield, Mass.-based medical products conglomerate expects net sales to rise between 4 percent and 7 percent for fiscal 2010, compared to the prior year — and not including sales of oxycodone hydrochloride extended-release tablets, a generic Oxycontin equivalent.
That’s thanks to a settlement with Stamford, Conn.-based Perdue Pharma LP that saw Covidien’s Mallinckrodt Inc. subsidiary agree to stop selling the painkiller to put a patent infringement lawsuit to rest.
Dockendorff said net sales are expected to increase 7 percent to 10 percent over 2009 for the company’s medical devices segment and 2 percent to 5 percent for its medical supplies division. Due to the Perdue settlement, pharma sales look to be down 2 percent to up 1 percent versus 2009, he said.
Covidien, which also said it closed its $64 million deal to acquire Power Medical Interventions Inc., also said it sees operating margins of up to 21 percent for the full year, excluding one-time expenses.
