Could Medtronic Have Better Spent $43 Billion?
Paul Nouri, CFP
Paul Nouri, CFP
Growth Needs Resuscitation, But Medtronic Still Looks Like A Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Jul. 12, 9:53 AM
- Mazor Robotics (MZOR) unveils its Mazor X, a new guidance system for spine surgeries. Commercial launch will commence at the North American Spine Society annual meeting in Boston in October.
- Medtronic (MDT +0.2%) will co-promote Mazor X in the U.S. It has already placed an initial order for 15 devices. If all goes well, Medtronic will assume exclusive global distribution rights for Mazor's future spine products in 2018.
- Previously: Mazor Robotics inks deal with Medtronic; shares up 23% premarket (May 18)
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Mon, Jun. 27, 7:37 AM
- Medtronic (NYSE:MDT) will acquire HeartWare International (NASDAQ:HTWR) for $58 a share in cash for a total of $1.1B. The deal is expected to close no later than October.
- HeartWare's flagship product is the HVAD System, the world's smallest full-support ventricular assist device (VAD). It also has multiple technologies in development designed to offer progressively less-invasive mechanical circulatory support options for patients with end-stage heart failure. According to Medtronic, the global VAD market is ~$800M with anticipated long-term high-single/low-double-digit growth.
- Medtronic maintains its fiscal 2017 revenue and earnings guidance. The acquisition should be EPS accretive in year three. HeartWare will be part of its Cardiac Rhythm & Heart Failure unit within the Cardiac & Vascular Group.
- HeartWare is up 91% premarket on increased volume.
Fri, Jun. 24, 10:25 AM
- Intrepid biotech investors are, no doubt, seriously considering deploying some cash today in response to the (hopefully temporary) bearish reaction to the Brexit vote. Nasdaq is currently down 2.7%, the Dow 2.2% and the IBB 3.3%.
- Representative tickers: (GILD -2.2%)(GSK -2.4%)(AZN -2.7%)(PFE -1.1%)(MRK -1.9%)(CELG -3.2%)(BMY -2%)(BIIB -2.4%)(AMGN -2.7%)(AGN -2.8%)(TEVA -0.8%)(ABT -3.4%)(MDT -1.4%)
Fri, Jun. 3, 8:17 AM
- Ophthotech (NASDAQ:OPHT) upgraded to Overweight from Neutral by JPMorgan. Price target raised to $84 (45% upside) from $60.
- Intuitive Surgical (NASDAQ:ISRG) downgraded to Neutral from Buy by Goldman Sachs. Price target raised to $674 (5% upside) from $633.
- Celgene (NASDAQ:CELG) downgraded to Neutral from Buy by BTIG Research.
- Medtronic (NYSE:MDT) downgraded to Neutral from Buy by BTIG Research. $82 price target removed.
- Portola Pharmaceuticals (NASDAQ:PTLA) downgraded to Neutral from Outperform by Credit Suisse. Price target lowered to $30 (7% upside) from $33.
Tue, May 31, 9:51 AM
- Medtronic (MDT) FQ4 results: Revenues: $7,567M (+3.6%); R&D Expense: $575M (+8.9%); SG&A: $2,360M (-1.8%); Operating Income: $1,506M (+303.8%); Net Income: $1,104M; EPS: $0.78; Non-GAAP EPS: $1.27 (+9.5%).
- FY2016 results: Revenues: $28,833M (+42.3%); R&D Expense: $2,224M (+35.6%); SG&A: $9,469M (+37.2%); Operating Income: $5,291M (+40.5%); Net Income: $3,538M (+32.3%); EPS: $2.48 (+2.9%); Non-GAAP EPS: $4.37 (+2.1%); Quick Assets: $2,876M (-40.6%); CF Ops: $5,218M (+6.4%).
- FY2017 Guidance: Revenue growth: 5.0 - 6.0%; Non-GAAP EPS: $4.60 - 4.70 (includes negative currency impact of $0.20 - 0.25).
Tue, May 31, 6:54 AM
Mon, May 30, 5:30 PM
Wed, May 18, 8:42 AM| Wed, May 18, 8:42 AM | 1 Comment
Wed, May 18, 8:13 AM
- Thinly traded micro cap Mazor Robotics (NASDAQ:MZOR) jumps 23% premarket on light volume in response to its announcement that it has entered into a commercial agreement with Medtronic plc (NYSE:MDT) for the co-promotion, co-development and potential global distribution of certain Mazor products. In a separate agreement, Medtronic has agreed to make an equity investment in the company.
- The commercial deal specifies an initial U.S.-based co-promotion phase. If both companies achieve their respective milestones by the end of 2017, then Medtronic will assume exclusive global sales and distribution rights for Mazor's future spine products, of which Medtronic has committed to buy 15 before the end of this year. The agreement also specifies that Mazor will be Medtronic's sole strategic partner for the development and commercialization of robotic spine systems and applications.
- Medtronic will make an initial $11.9M equity investment in Mazor representing a 4% stake at a price per share equal to the trailing 20-day volume-weighted average price. If Mazor achieves certain operational milestones, Medtronic will invest an additional 6%. If other conditions are met, including the commencement of the Global Distribution Agreement, Medtronic will increase its investment a further 5%. Medtronic, at its sole discretion, may cap the second and third tranches at $20M each.
- Mazor's lead product is Renaissance, a guidance system used by surgeons in spine surgery.
- Mazor will host a conference call this morning at 10:00 am ET to discuss the deal.
Wed, May 4, 10:32 AM
- Medtronic (MDT -0.2%) appoints Karen Parkhill as EVP and CFO effective June 30, succeeding Gary Ellis who will continue to lead the Global Operations, Information Technology and Facilities & Real Estate functions.
- Ms. Parkhill joins the firm from Comerica (CMA -1.5%) where she was Vice Chairman and CFO.
Tue, May 3, 10:03 AM
- Thinly traded micro cap Tandem Diabetes Care (TNDM -14.7%) heads south on light volume in response to its announcement that Medtronic (MDT -0.3%) will be the preferred provider of insulin pumps in UnitedHealth Group's (UNH) UnitedHealthcare's Community Plan and Commercial business. The change, apparently catching Tandem by surprise, will be effective July 1 and will prevent the majority of UnitedHealthcare members from purchasing Tandem insulin pumps on an in-network basis.
- Last year, Tandem shipped a total of 15,483 insulin pumps, ~1,200 to UnitedHealthcare members which would have been out-of-network under the new preferred relationship.
Fri, Apr. 29, 4:12 PM
- Medtronic (MDT -0.8%) initiated with Buy rating and $93 (18% upside) price target by SunTrust Robinson Humphrey.
- Celator Pharmaceuticals (CPXX +1.5%) initiated with Buy rating and $23 (53% upside) price target by Stifel Nicolaus.
- Caladrius Biosciences (CLBS -1%) upgraded to Buy from Neutral by H.C. Wainwright with a price target of $1.25 (81% upside).
- Insulet (PODD -0.6%) upgraded to Outperform from Market Perform by William Blair with a $40 (21% upside) price target.
- Alexion Pharmaceuticals (ALXN -2.3%) upgraded to Outperform from Market Perform by BMO Capital with a $168 (21% upside) price target.
- ResMed (RMD -1.2%) upgraded to Neutral from Underperform by Macquarie. Price target lowered to $57 (2% upside) from $65.
- Stryker (SYK -0.5%) upgraded to Buy from Neutral by Sterne Agee CRT with $130 (19% upside) price target.
- Jazz Pharmaceuticals (JAZZ -0.9%) upgraded to Buy from Neutral by SunTrust Robinson Humphrey. Price target raised to $200 (32% upside) from $164.
- Rigel Pharmaceuticals (RIGL -1.7%) upgraded to Overweight from Neutral by JP Morgan with a $5 price target.
- Novartis (NVS -1.1%) upgraded to Equal Weight from Underweight by Barclays.
- Molina Healthcare (MOH -19.4%) downgraded to Neutral from Buy by UBS. Price target lowered to $54 (4% upside) from $76.
- St. Jude Medical (STJ -2%) downgraded to Neutral from Overweight by JP Morgan. Price target raised to $82.50 (9% upside) from $66.
- Stericycle (SRCL -21.5%) downgraded to Underperform from Sector Perform by RBC. Price target lowered to $96 (1% upside) from $119.
- Sarepta Therapeutics (SRPT +2.8%) downgraded to Underperform from Hold by Jefferies with a price target of $7 (51% downside risk). Downgraded to Underweight from Neutral by Piper Jaffray. Price target lowered to $6 (57% downside risk) from $15.
- Perrigo (PRGO +0.3%) downgraded to Neutral from Buy by BTIG Research. Priced target removed.
- Trovagene (TROV -3.6%) downgraded to Hold from Buy by Cantor Fitzgerald with a $6 (50% upside) price target.
- Community Health Systems (CYH -4.6%) downgraded to Underperform from Market Perform by Raymond James with a $19 (0% upside) price target.
Wed, Apr. 6, 4:10 PM
- The FDA approves Medtronic's (NYSE:MDT) Micra Transcatheter Pacing System, the first pacer to be cleared for sale that does not require the use of wire leads to provide the connection between the device and the heart. The self-contained unit is small (one inch long) so it can be implanted directly in the chamber of the heart's right ventricle.
- In clinical studies, 98% of patients implanted with the Micra System had adequate pacing six months later. Complications occurred in fewer than 7% of recipients. Traditional leads, implanted under the skin near the collarbone, can malfunction and can be the source of infections.
Thu, Mar. 31, 4:45 PM| Thu, Mar. 31, 4:45 PM | 4 Comments
Wed, Mar. 30, 11:19 AM
- "What concerns us most is the continued extreme overweight in lower quality stocks," says BAML's Savita Subramanian. A strategy of buying the ten most underweight stocks and selling the ten most overowned stocks has generated an average alpha of 15 percentage points per year, she says.
- This chart from the BAML report shows the 11 most overowned stocks based on percentage of funds holding vs. their weighting in the S&P 500. At the top is PCLN, followed by MA, BIIB, V, MDT, TWX, ESRX, BA, AMGN, CELG, AMZN.
- Among those underowned are: AGL Resources (NYSE:GAS) and Diamond Offshore (NYSE:DO).
- via Scott Barlow
Medtronic Plc engages in the medical technology-alleviating pain, restoring health, and extending life for millions of people around the world. Its primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health... More
Industry: Medical Appliances & Equipment
Country: United States
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