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Covidien plc (COV)

  • Jun. 16, 2014, 9:15 AM
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  • Jun. 16, 2014, 7:26 AM
    • Share price movement of the acquirer is always an accurate metric for the market's opinion of an acquisition or merger. Investors appear to like Medtronic's (MDT) buy of Covidien (COV) announced yesterday. MDT is up 12% premarket on robust volume. COV, as expected, is up 36%.
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  • 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.
    • Press release
    • Previously: Medtronic in talks for $40B+ Covidien deal
  • Jun. 15, 2014, 10:59 AM
    • Medtronic (MDT) is in advanced talks to buy Covidien (COV) for more than $40B. The deal could be announced as early as tomorrow.
    • The tax inversion will allow Medtronic to be domiciled in Ireland, where Covidien is based, and permit the company to pay a lower corporate tax rate.
    • Medtronic has a current market value of $61B, and Covidien is valued at $32B.
  • Jun. 10, 2014, 6:25 PM
    • The FDA approves Covidien's (COV -0.2%) Apollo Onyx delivery micro catheter, the first detachable tip micro catheter cleared for sale in the U.S. It is designed to mitigate the technical challenges of tip retrieval during Onyx LES embolizations of brain arteriovenous malformations (bAVMs). A bAVM occurs when a bundle of blood vessels in the brain or on its surface bypass brain tissue and directly divert blood from arteries to veins. The condition affects one in 200-500 people and is more common in males than females.
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  • May 22, 2014, 1:37 PM
    • Covidien's (COV -0.4%) drug-coated angioplasty balloon, Stellarex DCB, continues to demonstrate its safety and effectiveness as a treatment for peripheral arterial disease (PAD) in a 24-month clinical study titled ILLUMINATE FIH.
    • 58 superficial femoral and/or popliteal lesions in 50 patients were pre-dilated with an uncoated angioplasty balloon followed by treatment with the Stellarex DCB. The company's product opens occluded blood vessels and simultaneously delivers paclitaxel to the vessel wall to help prevent restenosis.
    • Primary patency (the treated artery remained open without further treatment) was 82.3% at 24 months. Freedom from clinically-driven lesion revascularization at 24 months was 87.9%. This was the same rate observed at 12 months. No amputations or cardiovascular deaths were reported.
    • Covidien scientists presented the FIH study results at the EuroPCR Scientific Congress in Paris this week.
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  • May 16, 2014, 12:53 PM
    • The FDA downclasses colon capsule imaging systems and intravascular administration sets to Class II from Class III. This means that devices in these categories will be approved via the 510(k) process rather than the longer more expensive PMA route. Under the 510(k) guidelines, a manufacturer must only prove that its device is "substantially equivalent" to an already-approved device. The regulator's review period for these applications is typically 90 days or less, although the times have gotten a bit longer over the past several years.
    • There is a chicken-and-egg problem, however. If the FDA deems a device not substantially equivalent it designates it a "predicate" device that requires a PMA for approval. Subsequent devices enjoy the ride on the predicate's coattails. For example, the PillCam Colon 2 capsule endoscopy system made by Covidien's (COV +0.2%) Given Imaging unit and Anesthesia Safety Products' AirPurge System are designated predicate devices.
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  • Apr. 25, 2014, 7:28 AM
    • Net revenues: $2.6B (+3%), surgical solutions: $1.21B (+4%), vascular therapies: $409M (+1%), respiratory and patient care: $976M (+2%).
    • Gross margin: 58.4% (-3.3%).
    • Operating income: $582M (+11.5%).
    • EPS: $0.97 (+21.3%).
    • Fiscal 2014 guidance unchanged.
    • (COV)
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  • Apr. 25, 2014, 6:00 AM
    • Covidien (COV): FQ2 EPS of $0.96 beats by $0.01.
    • Revenue of $2.59B (+2.4% Y/Y) misses by $20M.
    • Press Release
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  • Apr. 25, 2014, 12:05 AM
  • Apr. 24, 2014, 5:30 PM
  • Apr. 15, 2014, 6:25 PM
    • Surgical device maker ConMed (CNMD) is exploring a sale of the company, Reuters reported earlier today, after activist investors late last year took issue with its performance and corporate governance.
    • The company's advisers, BoA Merrill Lynch and Greenhill, reportedly have contacted orthopedic device makers in recent weeks to gauge interest.
    • CNMD has an attractive orthopedics and sports medicine business that could appeal to companies such as Zimmer Holdings (ZMH), Johnson & Johnson (JNJ), Stryker (SYK), Covidien (COV) and Medtronic (MDT).
    • CNMD shares gained 7.2%, rallying from a loss before the report late in the session.
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  • Mar. 19, 2014, 2:21 PM
    • Covidien plc (COV) declares $0.32/share quarterly dividend, in line with previous.
    • Forward yield 1.80%
    • Payable May 5; for shareholders of record April 7; ex-div April 2.
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  • Mar. 3, 2014, 4:37 PM
    • Covidien (COV -1.5% reports its Puritan Bennett 980 ventilator system has the CE mark designation.
    • Normally, achieving CE mark status is routine, but this has not been the case with its ventilator product line. Last May, the FDA slapped the company with a Class I recall notice for the battery packs used with its Newport HT70's after the firm recalled them a month before due to performance problems that posed great risk to patients.
    • Earlier this year, the FDA issued another Class I recall notice to the firm pertaining to a software problem in the Puritan Bennett 840 Series ventilators. The glitch would potentially generate a diagnostic code that would shut the device down and force patients to breathe on their own.
    • The 980 series is also approved by sale in the U.S., Canada and Japan. Commercial rollout will begin in the next several months.
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  • Feb. 3, 2014, 8:51 AM
    • The FDA has approved Given Imaging's (GIVN) PillCam Colon camera-in-a-pill, which can be used for detecting colon polyps in patients after an incomplete optical colonoscopy.
    • A colon polyp is a growth on the surface of the colon.
    • In the U.S., 750,000 patients a year experience an incomplete colonoscopy, and the total global market for Given's device is 3M procedures a year.
    • Given is in the process of being acquired by Covidien (COV) for $860M.
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  • Jan. 24, 2014, 6:01 AM
    • Covidien plc (COV): FQ1 EPS of $1.00 beats by $0.06.
    • Revenue of $2.64B (+3.1% Y/Y) beats by $30M.
    • Press Release
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Company Description
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.