Shares of NuVasive Inc. (NSDQ:NUVA) plunged nearly 30 percent after the company lowered its guidance and suffered a legal setback last week.
The San Diego-based medical device maker, citing lower-than-expected spinal procedure numbers, cut its full-year guidance from sales of $485 million to $495 million to $470 to $495 million, down 3.1 percent on the lower end. Earning per share are now expected to be between $1.61 and $1.64, down 9 percent to 12 percent from $1.77 to $1.87.
And a federal court in California dealt the company a $60 million setback in a trademark infringement lawsuit, ruling that NuVasive violated the NeuroVision mark held by NeuroVision Medical Products Inc. NuVasive said it would immediately appeal the verdict, noting that "formal judgment has not yet been entered in the case, and the damages amount is subject to change in the judge’s discretion" and that additional rulings could also alter the amount of damages.
"The company does not anticipate any disruption to sales or the ability to meet surgery demands based on this verdict,” according to a press release. “
The one-two punch sent NUVA shares down 28.5 percent last week, closing at $26.17 Oct. 29.
NuVasive posted third-quarter sales of $120.3 million during the three months ended Sept. 30, up 26.7 percent over the same period last year. Net income rose 68.7 percent to $8.5 million, or 21 cents per diluted share, compared with $5.1 million, or 13 cents per diluted share, during Q3 2009.
