The medical device tax set to take effect next year as part of the Affordable Care Act will see all medical device companies pay a 2.3% levy on U.S. sales. But the tax is likely to strike some companies a lot harder where it hurts the most: the bottom line.
Former Medtronic (NYSE:MDT) CEO Bill Hawkins will serve as the first chairman of a new private-public partnership aimed at improving development and testing of medical devices.
The partnership includes the Minnesota med-tech community, the FDA’s Center for Devices & Radiological Health and the University of Minnesota to establish a regulatory science center in the North Star State.
Billionaire hedge fund manager David Tepper, of Appaloosa Management, bought 7.8 million shares of Boston Scientific stock during the 4th quarter, according to regulatory filings, for a stake with a market value of $41.6 million as of Dec. 31.
The message to Medtronic’s (NYSE:MDT) spine business from chairman and CEO Omar Ishrak was clear today: Shape up or ship out.
During a conference call with analysts to discuss the med-tech titan’s fiscal 3rd-quarter results, Ishrak said he was “not happy” that the division posted a 9% revenue decline and warned that the spine unit must raise its game or face the consequences.
Aetna Inc. (NYSE: AET) acquired Healthagen, the developer of mobile health app iTriage, for an undisclosed amount. The smartphone app, which lets users check their symptoms, find physicians, book appointments and shop for medical supplies, already has 3 million downloads from iPhone’s App store and the Android market.
The insurance giant plans to integrate iTriage into part of its accountable care organization after it augments the app with some new features.
Greatbatch Inc. (NYSE:GB) shares are up today after the med-tech giant’s third-quarter earnings beat analysts’ expectations.
Clarance, N.Y.-based Greatbatch said third-quarter profits were $6.99 million, or 30 cents a share, on sales of $131 million for the three months ending Sept. 30, up 17.2 percent and 3.3 percent, respectively, compared with the same period last year.
CLARENCE, N.Y.–(BUSINESS WIRE)–Greatbatch, Inc. (NYSE: GB) today announced results for its third quarter ended September 30, 2011:
Sales increased 3% over the prior year to $131.7 million, driven by 26% Vascular Access and 11% Orthopaedic growth.
GAAP Operating Income decreased 2% while Adjusted Operating Income increased 2% over the prior year.
GAAP and Adjusted Diluted EPS increased 20% and 21%, respectively, over the prior year.
Generated strong operating cash flow of $21 million and repaid $10 million of long-term debt.
InVivo Therapeutics Holdings Corp. (OTC:NVIV) appointed spinal cord injury expert Dr. Edward Wirth as its new chief scientist.
InVivo brings Wirth to the team as its waiting for a green light by the FDA to begin human trials of its biodegradable scaffold for treating spinal cord injury.
The scaffold is designed to protect and support spinal tissue and prevent secondary injury, including inflammation and glial scarring, following traumatic spinal cord injury.
A rebounding Boston Scientific Corp. (NYSE:BSX) said it plans to eliminate up to 1,400 jobs as part of a restructuring program aimed at saving between $225 million to $275 million annually by 2013.
Mendor, a Finish diabetes technologies and services company, raised $11.7 million in a Series B financing round, aiming for global expansion.
Funding was led by Finnish entrepreneur and investor Risto Siilasmaa, joined by Life Sciences Partners (LSP), Finnish Industry Investment Ltd., Finnish Mutual Pension Insurance Company Ilmarinen, private Finnish investment group Biothom and the Finnvera Venture Capital as a returning investor.