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
Sep. 28, 2015, 6:45 PM
- Medtronic (NYSE:MDT), up 0.2% after hours, will take a $500M charge in its Q2 on restructuring from its $50B acquisition of Covidien.
- The company moved HQ to Dublin from Minneapolis, one of several moves that changed its U.S. income taxes.
- The restructuring freed up about $9.8B in cash and other investments -- much of which is cutting debt ratios while routing more than half of free cash flow to investors.
- In its most recent quarter, Medtronic noted debt/equity of 67.4 times. Total debt of $35.6B compared to EBITDA (trailing 12 months) of $7.02B.
Sep. 14, 2015, 11:14 AM
- The FDA approves Medtronic's (MDT -1.1%) Evera SureScan implantable cardioverter defibrillator (ICD) System for MRI scans on any part of the body without positioning restrictions. It is the first such clearance for an ICD system. Patients implanted with the SureScan device can now have MRI procedures whenever they need them.
- The newly approved system will be available this month.
Sep. 3, 2015, 7:42 AM
- Medtronic (NYSE:MDT) fiscal Q1 results ($M): Total Revenues: 7,274 (+70.2%); Cardiac Rhythm & Heart Failure: 1,369 (+9.0%); Coronary & Structural Heart: 788 (+2.9%); Aortic & Peripheral Vascular: 410 (+76.7%); Cardiac & Vascular Group: 2,567 (+13.9%); Minimally Invasive Therapies Group: 2,456; Spine: 763 (+2.7%); Neuromodulation: 485 (+2.7%); Surgical Technologies: 485 (+1.3%); Neurovascular: 138; Restorative Therapies: 1,806 (+12.7%); Diabetes Group: 445 (+7.0%).
- Net Income: 820 (-5.9%); EPS: 0.57 (-34.5%); CF Ops: 816 (+163.2%).
- Fiscal 2016 Guidance: Revenue Growth: 4 - 6% (unch); Non-GAAP EPS: $4.30 - 4.40 (unch).
Sep. 3, 2015, 7:22 AM
- Medtronic (NYSE:MDT): FQ1 EPS of $1.02 beats by $0.01.
- Revenue of $7.27B (+70.3% Y/Y) beats by $220M.
Sep. 2, 2015, 5:30 PM
Sep. 2, 2015, 12:40 PM
- Medtronic (MDT +1.8%) will report fiscal Q1 results tomorrow before the open. Consensus view is EPS of $1.01 on revenues of $7.05B. In June, the company provided earnings guidance of $1.08 - 1.13.
Aug. 31, 2015, 6:23 PM
- Medtronic (NYSE:MDT) has acquired Medina Medical, a Silicon Valley-based maker of device used to treat brain cerebral aneurysms and other vascular abnormalities, for $150M up-front plus milestone payments.
- Medina's product is described as "an intrasaccular 3D mesh implant that fills the inside of a brain aneurysm," and which "provides a scaffold across the aneurysm neck; conforms to the shape of the aneurysm; and reduces blood flow." It's available in the EU, but not yet in the U.S.
- "Medina Medical`s breakthrough technology makes it a natural fit with our Neurovascular portfolio, further strengthening our hemorrhagic stroke portfolio," says Medtronic exec Brett Wall. Last week, Medtronic announced it's buying valve replacement device maker Twelve for $458M.
Aug. 25, 2015, 10:07 AM
- Medtronic (MDT +1.2%) agrees to acquire privately-held valve replacement device maker Twelve Inc. for $458M.
- Twelve is focused on developing a transcatheter mitral valve replacement device, an area MDT hopes will be a source of growth.
- MDT says it expects the net impact from the deal to be earnings neutral, as the company intends to offset the dilutive impact of the transaction.
Aug. 5, 2015, 7:57 AM
- Medtronic (NYSE:MDT) initiates exchange offers for almost half of its outstanding debt. The offers commenced yesterday and will expire on August 31. The tranches are:
- 1. up to $500M in Floating Senior Notes due March 15, 2020; 2. up to $1B in 1.500% Senior Notes due March 15, 2018, 3. up to $2.5B in 2.500% Senior Notes due March 15, 2020, 4. up to $2.5B in 3.150% Senior Notes due March 15, 2022, 5. up to $4B in 3.50% Senior Notes due March 15, 2025, 6. up to $2.5B in 4.375% Senior Notes due March 15, 2035, 7. up to $4B in 4.625% Senior Notes due March 15, 2045.
- Companies use exchange offers to manage their liabilities, specifically their degree of leverage.
Aug. 3, 2015, 10:23 AM
- The U.S. Centers for Medicare and Medicaid Services (CMS) approves a new technology add-on payment for C.R. Bard's (BCR) Lutonix Drug-Coated Balloon (DCB) under the Medicare hospital inpatient prospective payment system to help cover additional costs incurred by hospitals treating Medicare beneficiaries with the product. The maximum add-on payment, which will go into effect on October 1, will be $1,036 when DCBs are used for inpatient peripheral procedures and the total device costs exceed the allowance under existing DRG reimbursement.
- The Lutonix 035 DCB is an angioplasty balloon coated with a therapeutic dose of paclitaxel.
- Update: CMS approves a maximum add-on payment of $1,035.72 for Medtronic's (MDT -0.7%) IN.PACT Admiral DCB.
Jul. 13, 2015, 9:00 AM
- Medtronic (NYSE:MDT) acquires Carlsbad, CA-based RF Surgical Systems for $235M. RF focuses on the detection and prevention of retained surgical items (e.g., sponge, gauze, towel) after surgical procedures. The company's product, designed as an adjunct to manual counting methods, uses low radio frequency to track and detect items embedded with an RF tag.
Jun. 23, 2015, 9:52 AM
- The FDA approves Medtronic's (MDT -0.1%) CoreValve Evolut R System for transcatheter aortic valve replacement (TAVR) in patients with severe aortic stenosis (narrowing) who are at high/extreme risk for surgery. It is the first self-expanding recapturable transcatheter heart valve available in the U.S.
- TAVR is a minimally invasive surgical procedure to repair an old or damaged aortic valve. Instead of opening up the chest and replacing the defective valve, the replacement is wedged in the valve's place via a catheter. When the new valve is expanded it pushes the old valve leaflets out of the way and assumes the job of regulating blood flow.
Jun. 19, 2015, 5:39 PM
- Medtronic (NYSE:MDT) acquires Sunnyvale, CA-based Aptus Endosystems, a privately-held medical device firm developing advanced technology for endovascular aneurysm repair (EVAR) and thoracic endovascular aneurysm repair (TEVAR). The transaction value is ~$110M. No additional financial terms are disclosed.
Jun. 19, 2015, 10:54 AM
- Medtronic (MDT +0.6%) acquires Cleveland, OH-based CardioInsight for ~$93M in a debt-free transaction of $75M in cash plus the retirement of an outstanding $25M Medtronic loan less $7M in CardioInsight cash. Additional terms are not disclosed.
- CardioInsight's principal product is the ECVUE system, a non-invasive mapping system for electrical disorders of the heart.
Jun. 19, 2015, 9:55 AM
Jun. 18, 2015, 7:20 AM
- Medtronic (NYSE:MDT) invests in Arsenal Medical subsidiary Arsenal AAA with an option to acquire the firm if certain milestones are achieved. Financial terms are not disclosed.
- Arsenal AAA is developing a proprietary foam and delivery mechanism to treat aneurysms. The foam is designed to stabilize an aneurysm and reduce the risk of an endoleak by filling the aneurysmal sac around an endograft (a stent that is placed inside the thoracic aorta to alleviate the pressure). This is important in type II endoleaks where the anatomy of the branch vessels can cause persistent blood flow within the aneurysmal sac even in the presence of an endograft. Arsenal's foam can be used with any commercially available endograft and allows for the preventive treatment of endoleaks.
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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