Medtronic (NYSE:MDT) said the slump that’s hit its bread-and-butter cardiac rhythm management division where it hurts appears to have stabilized, despite the 5% sales slide during its fiscal 1st quarter.
The Fridley, Minn.-based firm, which is the world’s largest pure-play medical device company, posted $1.19 billion in revenues for its cardiac rhythm disease management segment during the 3 months ended July 27.
Chalking the decline up to "unfavorable foreign currency translation and market declines in the U.S. and Western Europe," Medtronic cited several positive signals in a regulatory filing this week.
"[T]he U.S. defibrillation systems market continued to show signs of stabilization, as the market experienced the lowest level of decline in the past six quarters. In addition, procedure volumes and the rate of pricing declines were relatively stable," according to the filing.
Medtronic: The medical device tax will cost us $50M this fiscal year
Medtronic also said it expects next year’s medical device tax to cost it $50 million after tax during its current fiscal year, which is set to close at the end of March.
The world’s largest medical device company also re-affirmed its estimate that the 2.3% excise tax, which will be applied to all U.S. med-tech sales starting Jan. 1, 2013, will carry an annual after-tax cost of $125 million-$175 million.
"We currently estimate that our fiscal year 2013 excise tax fee (impacting only the last 4 months for fiscal year 2013) could be up to $50 million after tax," Medtronic said in a regulatory filing. "We currently estimate that our annual excise tax fee would be within the range of $125 to $175 million after tax."
The Winnipeg-based medical device company said it won a U.S patent for the device, which combines radiation therapy and a moveable magnet system, and won 510(k) clearance from the FDA for an MR imaging radiation oncology package for pelvic, brain, and head and neck imaging.
“We are on our way to building our image guided radiation therapy business and producing essential tools for enhancing MR image targeting in cancer treatments to support radiotherapy utilized by half of all U.S. cancer patients each year,” chairman and CEO David Graves said in prepared remarks.
Bio2 Medical raises $12M
Bio2 Medical raised nearly $12 million of a hoped-for $20 million equity round, according to a regulatory filing. The company is developing the Angel vena cava filter.
- Abiomed (NSDQ:ABMD): TheStreet Ratings downgrades to hold; Jefferies Group reissues buy rating.
- Cardiovascular Systems (NSDQ:CSII): Leerink Swann initiates coverage with Outperform rating, $11-$12 price target.
- Danaher (NYSE:DHR): Citigroup reiterates Buy rating, raises price target from $60 to $63.
- McKesson (NYSE:MCK): Mizuho upgrades from Neutral to Buy, sets $99 price target.
- NxStage Medical (NSDQ:NXTM): CL King initiates coverage with “buy” rating.
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