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Medtronic plc (MDT)

  • Wed, Jan. 21, 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.
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  • Jun. 16, 2014, 9:15 AM
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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. 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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  • 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.
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  • 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)
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  • 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. 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.
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  • Oct. 30, 2013, 3:54 PM
    • Edwards Lifesciences (EW -5.2%) is under a bit of pressure today on the heels of Tuesday's update from Medtronic (MDT -0.9%) on the CoreValve system.
    • At issue are sales of EW's Sapien transcatheter heart valves. "The CoreValve is now expected by the end of April 2014," Jefferies' Raj Denhoy says, lowering estimates for EW "given the earlier share loss."
    • Analysts were already concerned about valve sales, with Leerink's Danielle Antalffy sounding a bit cautious after Q3 results were released on Monday: "Though [EW's] results were basically fine ... strong [overseas valve] sales offset [a] marginal U.S. [valve] miss."
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  • Oct. 29, 2013, 3:04 PM
    • After trading near the flat line for most of the session, Medtronic (MDT +1.4%) rallies as the company reports results from a U.S. pivotal trial of CoreValve.
    • MDT says CoreValve reduced the rate of death or major stroke for "patients who were considered too ill of frail to have their aortic valves replaced through traditional open-heart surgery" — the results were "highly" statistically significant and the trial met both its primary and secondary endpoints.
    • Additionally, the company says "the FDA has determined it has sufficient information to evaluate the safety and efficacy of the CoreValve System for [the extreme risk] patient group without the need for an external expert panel."
    • MDT expects approval for this group by the end of next year. (PR)
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  • Oct. 16, 2013, 9:21 AM
    • RTI Surgical (RTIX) slides 5% premarket after announcing preliminary Q3 revenues of $54.7M versus previous guidance of $59-61M.
    • The company blames the shortfall on "uncertainties surrounding when the FDA would provide a [warning letter] close-out, a slower than expected ramp in [the] new direct surgical specialties business, lower than expected volumes in [the] spine business, and lower than projected [international] revenues."
    • RTIX also says it has entered into a distribution deal with Medtronic (MDT) for the "processing [of] allograft implants for use in spinal surgeries." Effectively, the new agreement extends the companies' existing agreement which expires next year. (PR)
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  • Sep. 27, 2013, 1:57 PM
    • DexCom (DXCM -8.2%) sinks after the FDA approves Medtronic's (MDT +0.2%) MiniMed 530G.
    • Billed as an "artificial pancreas," the device shuts down insulin delivery when it senses blood sugar levels have fallen too low.
    • Both DXCM and Insulet (PODD -2.6%) could have done without the news — the companies market glucose monitors and insulin pumps.
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  • Jul. 12, 2013, 8:46 AM
    Shares of Edwards Lifesciences (EW) rise 6.4% premarket as the company prevails in a German patent infringement case. A Mannheim court says Medtronic's (MDT) CoreValve System infringes upon an EW-owned patent, a decision Canaccord's Jason Mills said last month may be enough to drive EW to $85/ share. MDT of course "respectfully disagrees" with the decision, plans to appeal, and says the ruling will not "be material to … fiscal 2014 financial results." MDT is off 1.38% before the bell.
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  • Jun. 10, 2013, 3:30 PM
    There is a "better than average chance" Edwards Lifesciences (EW +3.5%) will prevail in a German patent infringement case against Medtronic (MDT +0.1%), Canaccord (Buy) analyst Jason Mills says, adding that an injunction against MDT's CoreValue product "could propel" EW to $85/share. Separately, Credit Suisse upgrades EW to Outperform from Neutral.
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  • May 21, 2013, 8:39 AM
    More on Medtronic's (MDT) FQ4: Revenues grow 5% Y/Y on a constant currency basis while non-GAAP EPS growth comes in at 11%. International revenue grows 7% Y/Y and accounts for 47% of total worldwide sales. CEO Omar Ishrak says the results underscore the company's commitment to "delivering consistent and dependable growth." By segment, the Cardiac and Vascular group saw revenues grow 5%, while sales rose 4% in the Resorative Therapies unit. MDT says it sees FY14 revenue grow of 3-4% and EPS of $3.80-$3.82 against consensus of 3.84. Shares +4.25% premarket. (PR)
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  • Apr. 22, 2013, 8:43 AM
    Arca Biopharma (ABIO) soars 35% premarket. The company says it will collaborate with Medtronic (MDT) on a Phase 2b clinical trial for Gencaro, ABIO's lead developmental drug for the treatment of cardiac rhythm disorders.
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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.