Dec. 23, 2014, 2:23 PM
Nov. 24, 2014, 5:19 PM
- Stryker (NYSE:SYK) is considering making a bid for medical device manufacturer Smith & Nephew (NYSE:SNN) as a standstill period that prevents it from making an offer nears its end, according to reports out earlier.
- SYK is examining structuring the deal as a tax inversion, allowing it to move its legal address to the lower-tax U.K., but SYK is said to see strong strategic reasons to pursue a combination aside from tax advantages, and an inversion would not be essential to make the deal work.
- J.P. Morgan analysts think an acquisition could be at least 7%-8% accretive to SYK's 2016 EPS, rising to 11% in 2017 and 13% in 2018, assuming a 30%-35% premium relative to the unaffected price and that the acquisition is not an inversion; however, the firm thinks SNN is not looking to sell, and a combination would not gain easy U.S. or EU anti-trust approval.
- SNN gained 4.3% and SYK rose 1.4% in today's trading.
Oct. 31, 2014, 7:26 AM
- Smith & Nephew (SNN +3.3%) Q3 results: Revenues: $1,148M (+11.8%); Gross Profit: $851M (+11.0%); R&D Expense: $57M (-3.4%); SG&A: $634M (+20.1%); Operating Income: $160M (-11.1%); Net Income: $102M (-16.4%); EPS: $0.11 (-21.4%); Quick Assets: $147M (+7.3%); CF Ops: $148M (-25.6%).
- FY guidance remains unchanged.
Oct. 30, 2014, 9:06 AM
- Smith & Nephew (NYSE:SNN): Q3 EPS of $0.39 beats by $0.01.
- Revenue of $1.15B (+11.7% Y/Y) in-line.
Oct. 13, 2014, 7:14 AM
- Smith & Nephew's (NYSE:SNN) (OTCQB:SNNUF) living cell therapy product candidate, HP802-247, failed to achieve its primary endpoint in a U.S. Phase 3 clinical trial to assess its safety and efficacy as a treatment for patients with venous leg ulcers. The primary endpoint was a statistically significant improvement in healing compared to placebo.
- The reported results are top-line data. A full analysis will be completed in the next few months to determine what went wrong considering the strongly positive Phase 2a/2b results. A second Phase 3 being conducted in Europe will continue.
- Hp802-247 is an allogenic living cell bio-formulation of irradiated keratinocytes and fibroblasts in a human fibrin suspension. It is designed to work with the body's own cells to stimulate healing.
Sep. 23, 2014, 7:45 AM
- U.S. Treasury Secretary Jack Lew says that the Obama Administration is prepared to institute rules to stop tax inversion deals. If so, it will do so without a sliver of Republican support. Barclays analyst Michael Leuchten says, "Washington is playing for time. It makes them look good and it allows Congress to maybe get its act together and maybe do something on the legislative side."
- Mr. Lew's comments have spooked the market a bit. European companies already involved in deals or rumored to be targets are all under pressure due to the perception that some of the deals already announced may be at risk.
- The U.S. firm in the best position is Horizon Pharma (NASDAQ:HZNP). It completed its tax inversion transaction with Ireland-based Vidara Therapeutics last week.
- Related tickers: (MDT -0.4%)(COV -0.5%)(ABBV -0.6%)(SHPG -0.7%)(OTCQB:SHPGF -1.5%)(PFE -0.7%)(AZN -0.1%)(SNN +0.1%)(SYK -0.8%)
Aug. 1, 2014, 8:46 AM
- Smith & Nephew plc (NYSE:SNN) Q2 results: Revenue: $1,147M (+6.8%); Gross Profit: $859M (+7.9%); Operating Profit: $134M (-28.7%); Net Income: $89M (-31.0%); EPS: $0.099 (-30.3%); Quick Assets: $140M (+2.2%); CF Ops: $142M (-8.4%).
- 2014 Guidance: Orthopedic Reconstruction to grow at close to the market rate; Trauma and Extremities to grow at the market rate; Sports Medicine to grow above the market rate; Advanced Wound Management to grow below the market rate.
Jul. 21, 2014, 7:15 AM
- Bloomberg reports that, according to analysts, there are three ex-U.S. medical firms that should be high on the target acquisition list for tax inversion deals. Ireland-based Perrigo (NYSE:PRGO), Switzerland-based Actelion and U.K.-based Smith & Nephew Plc (NYSE:SNN) (OTCQB:SNNUF) are all attractive targets. Observers believe there will be more acquisitions consummated before Congress puts limits on the maneuvers.
- Stryker (NYSE:SYK) has been mentioned as a potential suitor for Smith& Nephew. Pfizer (NYSE:PFE) may make another run at AstraZeneca (NYSE:AZN) after the end of the cool-off period.
Jun. 23, 2014, 11:43 AM
- Smith & Nephew (SNN -1.7%) temporarily ceases distribution of the Renasys Negative Pressure Wound Therapy product line in the U.S. The stoppage is per instructions from the FDA that Renasys needs new 510(k) regulatory clearance because of design enhancements that have been made to the product. The company has filed the relevant paperwork and awaits the agency's action.
- Renasys' U.S. sales represented <5% of global Advanced Wound Management revenue in 2013.
Jun. 5, 2014, 9:12 AM
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.
May 28, 2014, 10:46 AM
May 28, 2014, 9:13 AM
May 1, 2014, 4:00 AM
- Smith & Nephew's (SNN) Q1 adjusted EPS of 17.7 cents misses by 0.05 cents.
- Revenue of $1.07B (+1% Y/Y) misses by $0.02B.
- The surgical device company's underlying trading profit drops 5% to $229M and slightly misses consensus of $231M, hurt by investment in products and slower revenue growth.
- However, Smith & Nephew remains confident in its 2014 outlook as it launches new products and the contribution of acquisitions increases.
- Shares are -0.2% in London. (PR)
Mar. 10, 2014, 9:49 AM
- OrthoSensor announces that Smith & Nephew (SNN) will market its Verasense Sensor Assisted Surgery Technology to assist orthopedic surgeons when implanting SNN's Journey and Legion brands of Total Knee Systems.
- The system enables evidence-based surgical decisions and delivers improved patient outcomes.
- SNN shares are up 9% year to date.
Feb. 6, 2014, 4:51 AM
- Smith & Nephew (SNN) Q4 underlying trading profit climbed 8% to $292M, just about topping consensus of $287M.
- Adjusted EPS 23.4 cents vs forecasts of 22.1 cents.
- Revenue increased to $1.2B from $1.1B and vs expectations of $1.16B.
- Pretax profit rose to $232M from $213M a year earlier
- Revenue increased to $1.2B from $1.1B
- Smith & Nephew CEO Olivier Bohuon said the company's Orthopaedic Reconstruction business "confirmed its improved dynamic, in particular delivering 11% growth in U.S. knees." Bohuon expects the business to continue its recent improved performance.
- Smith & Nephew's advanced wound management operations strongly outperformed its segment.
- The company expects the U.S. market to continue showing improvement in 2014, Europe to be challenging, and emerging markets to offer growth opportunities.
- Smith & Nephew declared a final dividend of $0.17 a share, bringing the distribution for 2013 to $0.274. Shares +1.9% in London. (PR)
Smith & Nephew Plc is a global orthopedics company. It develops, manufactures, markets and sells medical devices in the sectors of advanced medical devices and advanced wound management. The company operates in two segments: Advanced Surgical Devices and Advanced Wound Management. Advanced... More
Industry: Medical Appliances & Equipment
Country: United Kingdom
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