Orthopedic News Roundup 19-Oct-06
BY HUYEN NGUYEN, OCTOBER 19, 2006
Earnings
Dental: Lifecore Biomedical announced that 1Q:07 net sales increased 12% to $15 million. Net income for the quarter was $1.1 million, representing a year-over-year increase of 9%. The Company was in-line with analysts' estimates and reported earnings of $0.08 per diluted share. During the quarter, its Hyaluronan Division was up slightly and took in $4.8 million. Its Dental Division, however, achieved $10.2 million in sales, a 17% increase over the prior year. Domestic growth was driven by its Prima™ Implant System. For FY2007, Lifecore maintains a sales outlook of $70 to $72 million, an increase of 11% to 14% over fiscal year 2006 and $0.61 to $0.65 EPS, an increase of 19% to 27% over fiscal year 2006.
Large Joints: Stryker Corp. reported $1.3 billion in sales and $188 million in earnings in 3Q:06. Excluding the impact of foreign currency, sales were up by 9.8%, or 10.4% on a reported basis. Net income for the quarter was strong, representing a 56% increase (as reported), or a 23.9% (as adjusted) over the comparable quarter. Stryker's EPS was in line with analysts' expectations of $0.46 diluted net earnings per share.
DePuy, a JNJ company, reported 3Q:06 sales of $971 million, an increase of 8% (as reported), or 7% (constant currency). Sales for both the U.S. and international markets achieved 7% increase in constant currency.
Trauma: Synthes reported $595 million in sales, an increase of 14.5% in constant currency, for the 3Q:06. In trauma, product sales were primarily driven by the continued expansion of its Locking Compression Plate (LCP), and in spine, growth was realized across the board, including the Interbody Fusion, Anterior Throacolumbar, Cervical and Biomaterials product portfolios.
Update: Encore Medical Corporation provided preliminary 3Q:06 results with net sales of ~$91.0 to $94.0 million. Its operating income is expected to be ~$10.0 to $10.5 million, which will be negatively impacted by ~$3.9 million of miscellaneous expenses relating to the Compex integration, employee stock-based compensation and the previously announced private transaction with The Blackstone Group.
Distribution Agreement: Corin Group PLC and Kobayashi Pharmaceutical Co. Ltd signed a co-marketing agreement for Corin's entire range of orthopaedic devices for the Japanese market. Based in Osaka, Japan, Kobayashi is a major manufacturer and distributor of pharmaceutical and medical products and equipment.
Mergers & Acquisitions: Andover Medical, Inc. (AMI), an orthopedic, podiatric and urological equipment single-source provider, announced it has signed a letter of intent to acquire all outstanding stock of Ortho-Medical, Inc for an undisclosed amount. Based in New York, Ortho-Medical Products, Inc. is a full-service company specializing in procedure specific orthopedic durable medical equipment, respiratory equipment and orthotics and prosthetics. 3M announced the acquisition of Brontes Technologies Inc. for $95 million in cash. Brontes Technologies is a developer of 3-D intraoral imaging technology for the dental market. 3M is a $21 billion diversified technology company with leading positions in consumer and office; display and graphics; electronics and telecommunications; health care; industrial and transportation; safety, security and protection services and other businesses.
Operational Update: Biomet Inc. plans to spend $21 million to expand its northern Indiana facility which will create 260 new jobs for local residents. The two-phase project will consist of spending $4.2 million over the first two years to reconfigure a 30,000-sqaure-foot building and then $17 million to construct a 60,000-square-foot addition.
Regulatory Update: BioMimetic Therapeutics, Inc. announced that the FDA has completed its evaluation and approval of the manufacturing facility that produces rhPDGF-BB, the key active ingredient in the Company's lead product, GEM 21S, Growth-factor Enhanced Matrix. This approval expands the manufacturing capactiy for GEM21S.
Service Agreement: DJO Incorporated announced it has renewed a three-year supply contract with Premier Purchasing Partners. DJO will continue to supply its full line of Aircast®, DonJoy® and ProCare® rigid and soft bracing products and cold therapy systems, and, for the first time, its bone growth stimulation devices to Premier.
Appointments: Alphatec Holdings, Inc., announced that the Company's Chairman of the Board, John H. Foster, will become Executive Chairman, effective immediately. Ronald G. Hiscock remains President and Chief Executive Officer. Also, Stephen T. D. Dixon has resigned, and Steven M. Yasbek has been promoted from his current position as Vice President and Corporate Controller to Vice President and Chief Financial Officer.
