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Device tax spurs Hill-Rom to lay off 200 | Wall Street Beat

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MassDevice.com Wall Street Beat

Hill-Rom Holdings (NYSE:HRC) said it will lay off about 3% of its workforce, or roughly 200 workers, as it maneuvers to confront the medical device tax set to go into effect next year.

"The company is making these changes to help offset pressures from challenging macroeconomic conditions, regulatory and reimbursement pressures, and the new medical device tax," according to a regulatory filing.

Batesville, Ind.-based Hill-Rom also said it’s taking a $10 million to $13 million hit this year on tangible and intangible impairments, meaning a total charge of $19 million to $22 million for 2012.

Hill-Rom joins Stryker (NYSE:SYK) and Zimmer (NYSE:ZMH) in linking layoffs with the med-tech tax, a 2.3% levy on all U.S. sales of medical devices slated to begin next year. Earlier this month, Zimmer said it plans to offset the entire burden posed by the tax in 2013, in part by laying off about 170 workers. Stryker said late last year that it will cut 5% of its workforce due to the tax, and industry lobby AdvaMed has estimated that the levy will cost the med-tech sector about 11% of its jobs.

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 Kips Bay switches NASDAQ markets

The NASDAQ stock exchange granted Kips Bay Medical‘s (NSDQ:KIPS) request to move from its Global Market to the NASDAQ Capital Market "to take advantage of the Capital Market’s lower listing requirements." Read more

 Luna Innovations, Intuitive Surgical extend pact
Luna Innovations NSDQ:LUNA) and Intuitive Surgical (NSDQ:ISRG) extended a development deal through 2012 to integrate Luna’s shape and position sensing technology into Intuitive’s surgery robots. Read more

 Asahi Kasei begins $2B bid for Zoll

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 CRO Cetero files for bankruptcy after FDA probe
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 NASDAQ warns NeuroMetrix

NeuroMetrix (NSDQ:NURO) said the NASDAQ stock exchange warned it of a possible de-listing after its stock price moved below the exchange’s $1-per-share minimum price requirement. Read more

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A sextet of major players – Cerner Cerner (NSDQ:CERN), McKesson McKesson (NYSE:MCK), Siemens Siemens (NYSE:SI), GE Healthcare GE (NYSE:GE), Epic and Allscripts (NSDQ:MDRX) – dominates the market for electronic medical records, according to Kalorama Information. Read more

 Intuitive Surgical, GE, Hitachi, Philips win federal contracts

Intuitive Surgical (NSDQ:ISRG), GE (NYSE:GE), Hitachi (NYSE:HIT) and Philips (NYSE:PHG) all won contracts with the U.S. Defense Dept. 

 Funding Roundup

 Analysts’ ups and downs

  • Allergan (NYSE:AGN): Citigroup increases price target from $94 to $110, maintains "buy" rating.
  • Cardiovascular Systems (NSDQ:CSII): Benchmark Co. initiates coverage with "speculative buy" rating, $15 price target.
  • Edwards Lifesciences (NYSE:EW): JP Morgan maintains "neutral" rating; Citi maintains "buy" rating, $84 price target.
  • Insulet (NSDQ:PODD): Piper Jaffray initiates with "neutral" rating, $21 price target.
  • McKesson (NYSE:MCK): Goldman Sachs raises estimates through 2014, maintains "buy" rating.
  • Opko (NYSE:OPK): Ladenburg Thalmann maintains "buy" rating, $8.50 price target.
  • Smith & Nephew (FTSE:SN): Investec downgrades from "buy" to hold, cuts price target from £6.63 to £6.60.
  • St. Jude Medical (NYSE:STJ): Credit Suisse raises price target from $44 to $49, maintains "outperform" rating.
  • Synergetics (NSDQ:SURG): Wunderlich Securities maintains "buy" rating, $8 target price.
  • Tornier (NSDQ:TRNX): Benchmark Co. initiates coverage at "speculative buy", $31 price target.

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