Teleflex announces plans to cut costs and streamline manufacturing | Medtech Wall Street news for the week of May 5, 2014

Teleflex plans layoffs, plant closures in response to ‘cost pressures’

May 2, 2014 by Arezu Sarvestani

Teleflex leadership this week announced plans to cut costs and streamline manufacturing, measures that will result in untold layoffs as the company attempts to respond to market pressures.

Teleflex and its leadership declined to provide specifics about layoffs or plant closures, but chairman, president & CEO Benson Smith said in a conference call with analysts that initiatives would “include the relocation of manufacturing operations from certain higher-cost locations to existing lower-cost Teleflex locations.” Read more

Endo Health posts Q1 loss on $830M AMS mesh settlement

May 1, 2014 by Brad Perriello

Endo Health Solutions said it struck an $830 million deal to settle thousands of lawsuits over its American Medical Systems pelvic mesh products.

The deal would put some 20,000 product liability claims to rest with no admission of guilt, but it also pushed Endo into the red for the 1st quarter, the pharmaceutical and medical device maker said today. Read more

Morgan Stanley: Medtech underperformed in April

May 5, 2014 by Brad Perriello

The medical device sector under-performed the S&P 500 index in April after a sharp swing over-performance during the 1st quarter, according to analysts at Morgan Stanley.

The 30 medtech stocks Morgan Stanley covers collectively under-performed the S&P by 4.1%, after besting the index by 4.9% during the 1st quarter. Read more

Cardiovascular Systems jumps as sales increase 32%

May 1, 2014 by Arezu Sarvestani

Cardiovascular Systems’ revenues soared in its 3rd quarter, driven primarily by the popularity of the company’s Stealth 360 device, a peripheral artery disease treatment system.

Q3 sales increased 32% year-over-year, with customer reorder making up 96% of the company’s total revenue. CSII put much of that back into the company, investing $10.3 million in market launch initiatives, clinical studies and product development. Read more

Weight loss: GI Dynamics raises $32M with private placement

May 2, 2014 by Brad Perriello

GI Dynamics said it raised about $31.7 million (A$34.3 million) in a private placement with a group of "sophisticated, professional and accredited investors" overseas.

The Lexington, Mass.-based medical device company, which makes the EndoBarrier gastric sleeve, said the investors were from Australia, Hong Kong, the U.K. and “certain other jurisdictions.” Read more