Oct. 3, 2014, 10:19 AM
- Shaking off the potential flak from Uncle Sam for using its foreign cash to buy Covidien (COV +5.2%), Medtronic (MDT +3.5%) instead will rely on $16B in external financing to complete the transaction. Covidien shareholders will still receive $35.19 per share in cash plus 0.956 of an ordinary share of Medtronic.
- All terms and conditions of the definitive agreement signed by the two firms in June remain unchanged.
Sep. 25, 2014, 9:05 AM| Comment!
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%)
Sep. 23, 2014, 3:45 AM
- Under Treasury Secretary Jack Lew’s crackdown on inversions, the Treasury Department announced new tax rules late yesterday to deter U.S. companies from moving their domicile to countries with lower tax rates.
- The tax changes make it harder for companies to complete overseas mergers, and should they choose to invert, companies will face a hard time using the cash accumulated abroad.
- The new rules are effective immediately and apply to all deals that have not closed by yesterday.
- Related M&A: MDT, COV, SLXP, MYL, CQB, OTC:FYFFF,BKW, THI
Sep. 17, 2014, 4:17 PM
Aug. 28, 2014, 7:23 AM| Comment!
Aug. 25, 2014, 2:09 PM
- The FDA approves Covidien's (COV -0.7%) change in its process of making the polytetrafluoroethylene coating on the delivery wire of the firm's Pipeline embolization device. Covidien recalled certain lots of the Pipeline and Alligator retrieval devices on April 1, 2014 after determining that the lead wire could delaminate and detach from the devices.
- The company expects only a slight negative effect on Q4 results considering the timely resolution of the problem.
Aug. 22, 2014, 7:18 AM
Aug. 20, 2014, 4:22 PM
- Covidien (COV +0.4%) debuts its Covidien Center of Innovation (CCI) Brazil. The Sao Paulo-based 3,000 square meter facility will serve as a hub for training health care professionals on the latest medical technology. It has the capacity to offer 120 courses and educate up to 2,000 clinicians per year.
- It contains a surgical lab equipped for minimally invasive surgeries using electronic and computer simulators in addition to silicone models, a clinical scenario simulation lab equipped with a human patient simulator, a lab for educating in medical and hospital procedures, an Anatomage touchscreen table (study the human body's anatomy in a virtual patient), an R&D lab and a 160-person auditorium.
- The company also has CCI facilities in China, South Korea, India and Turkey.
Jul. 25, 2014, 7:18 AM
- Covidien (NYSE:COV) fiscal Q3 results: Net Sales: $2,688M (+4.3%), Advanced Surgical: $914M (+12.8%), Surgical Solutions: $1,305M (+7.6%), Vascular Therapies: $417M (unch), Respiratory and Patient Care: $966M (+1.9%); Gross Profit: $1,584M (+3.3%); R&D Expense: $137M (+6.2%); SG&A Expense: $1,034M (+21.2%); Operating Income: $366M (-34.5%); Net Income: $306M (-22.7%); EPS: $0.67 (-20.2%).
- No guidance given.
Jul. 25, 2014, 6:01 AM
Jul. 24, 2014, 5:30 PM
Jul. 16, 2014, 4:19 PM
Jul. 11, 2014, 12:02 PM
- During fiscal Q3, Covidien (COV -0.1%) received additional information pertaining to the pelvic mesh products liability claims and potential financial exposure based on access to medical records, discussions with plaintiff lawyers and settlements by other manufacturers. On the basis of this new information, the company recorded a pre-tax charge of $180M in fiscal Q3.
Jun. 24, 2014, 8:43 AM
- Covidien (COV) files a patent infringement suit in the U.S. District Court in Connecticut against Ethicon Endo-Surgery (JNJ). It alleges that Ethicon's Harmonic ACE+7 Shears infringes on three COV patents. The same court ruled in favor of COV regarding the validity of the three patents in an earlier suit involving other Ethicon ultrasonic surgical products and awarded COV $175M. The award is under appeal.
Jun. 16, 2014, 12:45 PM
COV vs. ETF Alternatives
Covidien PLC is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The Company's business segments are Medical Devices and U.S Medical Supplies.
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