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
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%)
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.
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.
Mon, Jan. 11, 12:29 PM
- Trading in Medtronic (MDT -0.7%) was halted at 12:27 pm ET pending news.
Jan. 21, 2015, 7:40 PM
- Endo International (NASDAQ:ENDP) +2.9% AH on news it will join the S&P 500 later this month, replacing Covidien (NYSE:COV) after its acquisition by Medtronic (NYSE:MDT), which is expected to close next week.
- Also, Boston Beer (NYSE:SAM) will take ENDP’s spot on the S&P MidCap 400, and Southside Bancshares (NASDAQ:SBSI) is tapped to join the S&P SmallCap 600.
Jun. 16, 2014, 12:45 PM
Jun. 16, 2014, 9:15 AM
Jun. 15, 2014, 9:37 PM
- Confirming earlier reports, Medtronic (MDT) is buying Covidien (COV) in a cash and stock deal valuing Covidien at $93.22 per share based on Medtronic's Friday close of $60.70. The price represents a near-30% premium to Covidien's Friday close.
- The transaction will have each share of Covidien converted into the right to receive $35.19 in cash and 0.956 shares of Medtronic.
- Medtronic expects the purchase to be accretive to cash earnings in the first fiscal year following the close (late this year, or early next), and significantly accretive thereafter, with $850M of annual pre-tax cost synergies by the end of fiscal 2018.
- As noted earlier, the purchase will have Medtronic moving its principal executive offices to Ireland, where corporate tax rates are lower than the U.S.
- Previously: Medtronic in talks for $40B+ Covidien deal
Jun. 4, 2014, 2:25 PM
- Bloomberg reports Medtronic (MDT +3.8%) is mulling a buyout offer for knee/hip implant maker Smith & Nephew (SNN +8.6%). SNN and i-banks are said to be "aware of Medtronic's interest.".
- The news service cautions Medtronic's prep work is at an early stage, and that "no offer is imminent." Nonetheless, Medtronic is viewed as "a more serious bidder" for SNN than Stryker (SYK -0.1%), previously rumored to be weighing an offer.
- Sources state a deal would likely result in Medtronic using SNN's corporate shell to change its legal residence to the U.K., and thereby take advantage of lower tax rates. Medtronic, which has a large offshore cash balance, has previously said it's open to a tax-inversion deal.
- Shares of both companies have spiked higher following the report. SNN's market cap is currently at $17B.
Jan. 17, 2014, 2:10 PM
- Medtronic (MDT +0.4%) says it received FDA approval, three months earlier than expected, to sell its CoreValve heart valve technology for patients too frail for traditional surgery approval.
- The approval allows MDT to begin competing against Edwards Lifesciences (EW -5.1%), whose similar Sapien device has been approved for a wider range of patients, including those who are eligible for surgery, but who are considered at high risk for complications.
- CoreValve is approved for patients with severe aortic stenosis who are too sick or frail to undergo open-heart surgery; in a clinical trial, patients receiving the device had a 25% rate of death or major stroke after one year vs. an estimated rate of 43% had the patients received medication therapy.
Jan. 8, 2014, 9:16 AM
- The FDA has accepted LabCorp's (LH) application for its diagnostic test to be used in the Phase 2B/3 "GENETIC-AF" trial of ARCA Biopharma's (ABIO) Gencaro drug for treating patients with atrial fibrillation.
- Patient enrollment for the testing, in which ARCA is collaborating with Medtronic (MDT) also, is due to begin this quarter.
- ARCA's shares soar 21%. (PR)
Jan. 6, 2014, 2:09 PM
- McKesson (MCK -0.1%) upgraded to Strong Buy from Outperform at Raymond James.
- DaVita (DVA +0.4%) upgraded to Outperform from Market Perform at Raymond James.
- Idenix Pharmaceuticals (IDIX -0.3%) upgraded to Buy from Neutral at UBS.
- Abbott Labs (ABT +1.5%) upgraded to Overweight from Equalweight at Morgan Stanley.
- Medtronic (MDT +2%) upgraded to Overweight from Neutral at JPMorgan. Price target is $69.
- Vertex Pharmaceuticals (VRTX +2.5%) upgraded to Buy from Neutral at UBS.
- Ocera Therapeutics (OCRX +2.7%) upgraded to Outperform from Market Perform at BMO.
- Boston Scientific (BSX +3.2%) upgraded to Overweight from Equalweight at Morgan Stanley.
- Exelixis (EXEL +4.6%) upgraded to Overweight from Neutral at Piper.
- St. Jude Medical (STJ +3.8%) upgraded to Overweight from Equalweight at Morgan Stanley.
Dec. 23, 2013, 5:35 PM
Dec. 17, 2013, 1:35 PM
- Salix Pharmaceuticals (SLXP -0.2%) upgraded to Buy from Hold at Stifel. Price target is $108.
- Medtronic (MDT +0.3%) upgraded to Buy from Neutral at Goldman. Price target hiked (by a buck) to $66.
- CareFusion (CFN -3%) cut to sell from Neutral at Goldman. Price target is $36.
- Ocera Therapeutics (OCRX -0.4%) initiated at Outperform at Cowen.
Dec. 9, 2013, 12:45 PM
Dec. 9, 2013, 9:15 AM
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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