MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

Home » St. Jude Medical rebounds after “Greek tragedy” | Wall Street Beat

St. Jude Medical rebounds after “Greek tragedy” | Wall Street Beat

By

MassDevice.com Wall Street Beat

Shares of St. Jude Medical (NYSE:STJ) clawed back some of the value lost yesterday in what 1 waggish analyst termed a “Greek tragedy.”

STJ shares closed down 3.3% yesterday at $39.96 when the company revealed a $56 million writedown after a Greek distributor failed to pay up for an estimated 2 years worth of sales.

Calling it a "Greek tragedy," Citigroup analyst Matthew Dodds wrote a research note to investors that St. Jude waited longer than other companies to write down its Greek receivables.

"[St. Jude] has not disclosed how long it has been since this distributor has paid them, but our math suggests $56 million is at least 2 years’ worth of sales in Greece based on competitor sales basis (pre-crisis)," Dodds wrote.

The Greek government, the International Monetary Fund and the European Union inked a deal in February to resolve that country’s massive debt crisis.

"This agreement, among other macroeconomic and factors specific to the distributor, negatively impacted the solvency and liquidity of the company’s Greek distributor, raising significant doubt regarding the collectability of our outstanding accounts receivable balance of approximately $56 million," St. Jude said in the SEC filing. "We have also experienced delays in the collectability of receivables in certain European member states, particularly in Southern Europe. Although we still expect to fully collect these receivables, there can be no assurances that additional negative economic disruptions and slowdowns in Europe may result in us not fully collecting these receivables, adversely affecting our cash flows, financial position and results of operations. Additional prolongation of the economic disruptions in Europe may negatively impact reimbursement rates and procedural volumes and adversely affect our business and results of operations."

STJ shares were trading at $40.91 as of about 11:50 today, up 2.4% on the day.

 Nuance to pay $300M to Transcend

Nuance Communications agreed to pay $300 million to acquire medical transcription and speech editing services provider Transcend Services. Read more

 Report: Syneron in talks to buy TransPharma

Syneron Medical (NSDQ:ELOS) is in talks to purchase transdermal drug delivery firm TransPharma Medical for $15 million, according to an Israeli news outlet. Read more

 ACT’s 2011 cash burn ramps up on clinical trials

Advanced Cell Technology (OTC:ACT) said its cash burn went up 55% last year, as it ramped up the first -ever clinical trial involving human embryonic stem cells. Read more

 CareFusion wins $75M DoD contract

CareFusion (NYSE:CFN) won a $75 million contract from the U.S. Defense Dept. for "medical equipment, maintenance and/or spare parts/repair parts of medical equipment. Read more

 Amgen closes Micromet tender offer

Amgen (NSDQ:AMGN) said it now owns more than 88% of Micromet (NSDQ:MITI) and plans to buy the rest by the end of the day, when MITI shares will cease trading publicly and the $11-per-share, $1.16 billion offer closes. Read more

 Allezoe deals Organ Transport Systems back to Healthcare of Today
Allezoe Medical Holdings (OTC:ALZM) agreed to reverse its takeover of Organ Transport Systems from Healthcare of Today Inc. after it realized it will take about $10 million to get the technology ready for market. Read more

 Hill-Rom raises Q2 dividend
Hill-Rom Holdings (NYSE:HRC) raised its 2nd-quarter dividend by 11 percent to 12.5 cents per share, payable March 30. Read more

 Baxter issues Q4 dividend
Baxter International (NYSE:BAX) declared a quarterly dividend of 33.5 cents per share, payable April 2. Read more

 Nordion issues Q4 dividend

Nordion (NYSE:NDZ) declared a quarterly dividend of 10 cents per share, payable April 5. Read more

 Funding Roundup

 Analysts’ ups and downs

  • Baxter (NYSE:BAX): RBC Capital maintains "outperform" rating.
  • Mako Surgical (NSDQ:MAKO): Leerink Swann maintains "market perform" rating, raises price target from $35 to $39.
  • Zeltiq (NSDQ:ZLTQ): Goldman Sachs downgrades from "buy" to "neutral," lowers price target from $19 to $8.50.

In case you missed it

RSS From Medical Design & Outsourcing

  • FDA and VA Ventures Innovation Institute partner on new medical device testing tools
    The Department of Veterans Affairs’ VA Ventures Innovation Institute in Seattle will host up to a dozen FDA staffers in a new collaboration to develop and share new tools for medical device testing safety and efficacy. The agencies intend to provide developers of devices and new technology with off-the-shelf tools that can help streamline regulatory… […]
  • How Boston Scientific is managing labor shortages with cobots and Spanish
    Boston Scientific (NYSE: BSX) executives said two labor-shortage strategies are paying off in a big way for the medical device maker, which has around 41,000 employees across the globe. Collaborative robotics and Spanish-speaking shifts are helping Boston Scientific deal with labor shortages in the U.S. and elsewhere. That’s according to Global Operations EVP Brad Sorenson… […]
  • 6 power management considerations for developing and scaling smaller, smarter micromedical devices
    Supercharge every phase of micromedical device product development with these questions. Mitch Johnson, Intricon Some of the biggest considerations for designing, manufacturing and scaling today’s smaller, smarter medical innovations center on providing power to microelectronic systems. From mechanical functionality to data operations and wireless communications, effective power management drives continued device innovation. Addressing five fundamental… […]
  • Evonik, Coopmed agree on wound dressing distro deal
    Evonik announced today that it signed an agreement for medical technology company Coopmed to distribute the epicite wound dressing. Jena, Germany-based Evonik said Coopmed will distribute the epicite dressing made from biosynthetic cellulose exclusively to the German market for chronic wound care. Epicite represents part of the portfolio from JeNaCell, which Evonik acquired in 2021.… […]
  • Spartech hires Bosch VP Dan Gallo as chief operating officer
    Spartech today said it hired Dan Gallo as chief operating officer of the engineered thermoplastics and custom packaging manufacturer. Gallo started this month, according to his LinkedIn page. His career leading operations, supply chain and logistics functions spans more than three decades. He was most recently an operations VP at Robert Bosch. Before his time… […]
  • 3M launches Verify platform to spot counterfeit products
    3M (NYSE:MMM) announced today that it established a new 3M Verify platform to report potential counterfeit 3M products. The effort builds upon its anti-counterfeit efforts during the height of the COVID-19 pandemic. At the time, a number of sellers claimed to offer 3M respirators. Instead, many offered fake, defective and damaged N95 masks at inflated… […]
  • FDA will review fewer COVID-19 test EUA submissions
    The FDA is pushing COVID-19 test developers away from emergency use authorization (EUA) submissions in favor of more traditional pathways, the agency said today. The FDA said it intends to review “only a small subset” of new EUA submissions, encouraging test makers to seek regulatory approval through de novo classification or 510(k) clearance pre-market review… […]
  • Integra plans to shrink the C-suite after executive’s exit
    Integra Lifesciences (Nasdaq: IART) will eliminate the position of chief operating officer next week — though the office is already empty. Former COO Glenn Coleman’s last day at Integra was Friday, according to a separation agreement filed with the Securities and Exchange Commission that same day. Coleman was scheduled to start as the new EVP and… […]
  • Steris plans to build a new medical device testing facility
    Steris (NYSE: STE) plans to build a new packaging and microbiological testing facility for medical devices in Leipzig, Germany. The facility will offer packaging testing services such as accelerated and real-time aging, transportation and integrity testing. The new location will also offer microbiological testing in collaboration with the medical device manufacturer and sterilizer’s laboratory in… […]
  • 10 medical device startups you need to know
    Some of the most interesting medical device startups of 2022 are advancing a wide range of innovative medtech: robotics, catheter-delivered brain-computer interfaces and more. The editors here at Medical Design & Outsourcing and MassDevice are writing about medical device startups all the time. But there are some device companies starting out that have technologies that… […]
  • Steris stock downgraded as analysts expect lawyers to seek more ethylene oxide lawsuits
    Steris (NYSE: STE) stock was downgraded today by Needham from buy to hold following the $363 million jury verdict against its primary competitor, Sterigenics, over ethylene oxide (EtO) emissions. Needham analysts said they expect attorneys to target communities near EtO facilities with ads to find people willing to file more lawsuits against sterilization plant operators… […]

Leave a Reply