November 10, 2014 by Brad Perriello
Medtronic said today that it signed a package of loans worth $16.3 billion to help finance its pending $43 billion acquisition of Covidien, which is slated to close early next year.
The package includes an $11.3 billion, 364-day bridge loan and a 3-year, unsecured term loan for $5.0 billion, Medtronic said. Read more
November 6, 2014 by MassDevice
Investors and bankers have been lamenting the potential death of large cross-border healthcare mergers since the U.S. Treasury Dept. announced in late September that it would curtail the tax breaks from international deals designed to give U.S. companies a legal home in a low-tax country.
But now bankers and small-cap investors see a silver lining: Instead of quashing mergers and acquisitions altogether, the Treasury’s proposal on “tax inversions” may pull dealmaking onshore. Read more
November 5, 2014 by Brad Perriello
Ximedica said today that SV Life Sciences picked up a majority interest in the Providence, R.I.-based medical device development company from co-founders Stephen Lane and Aidan Petrie for an undisclosed amount.
Although SV managing partner and COO Paul LaViolette will take over as chairman, president & CEO Randall Barko and his management team will remain in place, according to a press release. Petrie will continue as chief innovation officer, Ximedica said. Read more
November 7, 2014 by Brad Perriello
Shares of Wright Medical slid nearly 6% yesterday despite slashed 3rd-quarter losses and a nearly 24% sales spike, after the medical device company missed its earnings-per-share target by a penny.
Memphis, Tenn.-based Wright posted losses of -$61.8 million, or $1.24 per share, on sales of $71.3 million for the 3 months ended Sept. 30, slashing its losses by 147.5% and boosting sales by 23.7% compared with Q3 2013. Read more
November 7, 2014 by MassDevice
Salix Pharmaceuticals slashed its full-year forecast yesterday and said inventory for its key drugs piled up, an issue that people familiar with the matter said dissuaded Allergan from acquiring the drugmaker.
The 2 companies were close to inking a deal, but Botox maker Allergan balked after its due diligence raised questions over inventory levels, the people said, requesting anonymity because the negotiations were confidential. Read more