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Medtronic plc (MDT)

  • Aug. 1, 2014, 10:06 AM
    • The ENT division of Medtronic's (MDT +0.2%) Surgical Technologies business launches the NuVent EM Sinus Dilation System for the Fusion ENT Navigation System. NuVent is a balloon sinus dilation system with built-in electromagnetic surgical navigation to that helps the surgeon confirm anatomy and optimize the placement of the balloon during sinus surgery.
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  • Jul. 29, 2014, 1:06 PM
    • In one of the largest financings this year, privately-held Proteus Digital Health raises $172M. The company is developing a "smart pill" that a patient swallows. It records data on the internal milieu and transmits it externally via a patch on the abdomen. Reactions with stomach juices provide the power.
    • One of Proteus' collaborators is Novartis (NVS +0.6%).
    • Investors include Novartis, Medtronic (MDT +0.2%), Oracle and Kaiser Permanente.
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  • Jul. 11, 2014, 6:14 PM
    • CryoLife (CRY +0.7%) hires James Patrick Mackin as President & CEO effective September 2, 2014 replacing Steven G. Anderson who will transition to the role of Executive Chairman of the Board. Mr. Mackin joins the company from Medtronic (MDT +0.5%) where he was President of Cardiac Disease Management.
    • Mr. Mackin's employment contract specifies a base salary of $600,000 per year, a performance-based target bonus of $360,000, two country club memberships, a car allowance of $1,500 per month and up to $30,000 reimbursement for the costs of negotiating his employment contract. In addition, he will receive options to purchase 400,000 shares of CRY stock and a restricted stock grant of 250,000 shares.
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  • Jun. 16, 2014, 9:15 AM
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  • Jun. 16, 2014, 8:18 AM
    • Undoubtedly motivated by the looming patent expiration of Lantus, Sanofi (SNY) is teaming up with Medtronic (MDT) on developing drug-device combinations and offering care management services for type 2 diabetes patients. Sanofi brings its insulin portfolio to the partnership while Medtronic brings insulin pumps and glucose monitoring devices. Financial terms are not disclosed.
    • Approximately 382M people worldwide have diabetes. Type 2 comprises as much as 95% (363M) of the total.
    • The companies already collaborate for Type 1 diabetes in Europe.
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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. 12, 2014, 3:44 PM
    • The FDA approves Medtronic's (MDT -0.6%) transcatheter aortic valve replacement (TAVR) CoreValve System for patients at high risk for open-heart surgery. Its original indication, approved in January 2014, is for patients at extreme risk for open-heart surgery. The basis for the expanded label was a Phase 3 clinical trial comparing TAVR using CoreValve to traditional surgical aortic valve replacement. One-year survival in patients receiving the CoreValve System was 85.8% vs 80.9% for patients receiving the traditional procedure. The results were statistically significant.
    • The Medtronic device competes directly with Edwards Lifesciences' (EW -3.1%) Sapien TAVR system. Last month, MDT agreed to pay EW $750M plus royalties to settle patent infringement claims.
  • Jun. 10, 2014, 12:03 PM
    • Based on the findings of an independent committee that investigated shareholder claims that Medtronic (MDT -1.2%) underreported the side effects of its Infuse bone growth stimulation product, the company decides not to pursue claims against current and former executives, directors, employees and physician consultants. The committee concluded that pursuing legal action would not be in the company's best interests.
    • The committee was formed two years ago and included a retired Minnesota state judge and corporate law professor.
    • MDT will seek the dismissal of two consolidated shareholder lawsuits.
    • Its problems aren't over, though. Last week, Humana filed suit against the company accusing it of falsely representing the product.
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  • 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.
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  • May 20, 2014, 9:06 AM
    • Medtronic (MDT) net profit -54% to $448M, hurt by the patent agreement with Edwards Lifesciences and a product-liability settlement.
    • Sales breakdown: international +3% to $2.145B (47% of total), Emerging market +10% to $571M (13% of total).
    • Cardiac & Vascular worldwide sales +1% to of $2.37B; Restorative Therapies +2% to $1.74B; Diabetes +13% to $460M.
    • Expects FY 2015 EPS to grow 6-9% to $4.00-4.10 vs consensus of $4.09 and revenue growth of 3-5% at constant currencies. FY 2014 revenues were $17B. Analyst expectations for 2015 revenue are $17.64B.
    • Shares are -0.15% premarket. (PR)
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  • May 20, 2014, 7:42 AM
    • Medtronic (MDT): FQ4 EPS of $1.12 in-line.
    • Revenue of $4.57B (+2.5% Y/Y) misses by $10M.
    • Press Release
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  • May 20, 2014, 7:29 AM
    • Edwards Lifesciences (EW) and Medtronic (MDT) settle their patent disputes regarding transcatheter heart valves. They agree to dismiss all pending cases and appeals in courts and patent offices worldwide and not litigate patent disputes between them in the field of transcatheter valves for the duration of the eight-year term of the settlement.
    • Under the terms of the agreement, Medtronic will make a one-time payment to Edwards of $750M and make quarterly royalty payments through April 2022 based on a percentage of Medtronic CoreValve sales subject to a minimum of $40M/year.
    • Edwards will contribute $50M from the settlement to its Every Heartbeat Matters philanthropic program.
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  • May 19, 2014, 5:30 PM
  • May 12, 2014, 1:01 PM
    • Results from Medtronic's (MDT +1.2%) MINERVA clinical study show that its ATP algorithm reduces the development of persistent atrial fibrillation by 58% compared to standard pacemakers. The algorithm restores the heart back to its normal rhythm by pacing during abnormally fast atrial rhythms. In the study, it played a significant role in slowing the progression of the disease by successfully terminating atrial tachycardia/atrial fibrillation episodes.
    • The company believes that the reduction in these episodes could save $1,218 in healthcare costs per patient over a 10-year time frame.
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Company Description
Medtronic PLC is engaged in providing medical technology alleviating pain, restoring health, and extending life of people. It currently functions in three operating segments that manufacture and sell device-based medical therapies.