Earnings
Biologics
Integra LifeSciences announced 1Q:07 revenues of $123.0 million, beating estimates of $119.25 million and reflecting a 60% increase over 1Q:06. Net income for the quarter was $9.07 million, or $0.33 per share, meeting analysts' estimates. President and CEO Stuart M. Essig attributed the sales results to growth for both existing and acquired products.
Osteotech reported revenue of $25.2 million for 1Q:07, in line with analysts' estimates and representing an increase over revenue of $25.1 million in the comparable quarter. Adjusted income was $0.4 million, or $.02 diluted net income per share, beating estimates of $0.00 per share.
Orthovita reported sales of $13.15 million for 1Q:07, missing estimates of $13.72 million and representing a 22% increase over the comparable quarter. The growth was attributed mainly to increased sales of VITOSS® FOAM and VITAGEL® in the U.S. 1Q:07 net loss decreased to $2.94 million from $3.93 million in 1Q:06. Loss per share in 1Q:07 was $0.05, beating estimates of a loss of $0.07.
Regeneration Technologies' 1Q:07 revenues were $22.0 million, beating estimates of $19.47 million and representing a 20% increase over 1Q:06. The company reported net income of $0.13 million and break-even earnings per diluted share, beating estimates of a loss of $0.03 per share and comparing to net loss of $1.3 million, or $0.04 per share in 1Q:06. CEO Brian Hutchison attributed the results to increased levels of donated tissue, increased demand for RTI's products and changes to the company's business model in late 2006.
Aastrom Biosciences announced 1Q:07 revenues of $0.26 million, beating estimates of $0.18 million and comparing to revenues of $0.24 million for 1Q:06. Net loss for the quarter was $4.48 million, or $.04 per share, meeting estimates and comparing to a net loss of $4.56 million in the comparable quarter. Additionally, Aastrom announced FDA approval of a U.S. Phase III multi-center clinical trial to treat osteonecrosis of the femoral head among other data.
Bracing
DJO reported 1Q:07 net revenues of $114.9 million, beating estimates of $114.1 million and reflecting an increase of approximately 39% over the comparable quarter. 1Q:07 adjusted net income was $5.6 million, or $0.23 per share, missing estimates of $0.31 per share. In 1Q:06, adjusted net income was $6.5 million, or $0.28 per share. The decline in profit was attributed "the fact that we have rapidly increased the size and scale of our Company very significantly through our recent acquisitions and our successful internal growth strategies," according to CEO Les Cross.
Other Orthopedics
Orthofix announced 1Q:07 revenue of $117.0 million, representing an increase of 44% over 1Q:06 and beating estimates of $116.7 million. Revenues included $26.4 million from Blackstone Medical, Inc.; excluding Blackstone's revenue, Orthofix's first quarter sales were up 12% over the prior year. 1Q:07 earnings totaled $6.3 million, or $0.37 per diluted share, missing estimates of $0.38. CEO Alan Milinazzo attributed the growth to a boost from the Blackstone acquisition as well as restructuring initiatives.
Dental
Henry Schein, Inc. reported 1Q:07 revenues of $1.3 billion, meeting analysts' estimates and representing an increase of 14.8% over the comparable quarter. Dental sales were up 17%. Net income and income from continuing operations in 1Q:07 was $43.5 million or $0.48 per diluted share, in line with estimates. Net income and diluted earnings per share from continuing operations were up 22% and 20%, respectively, compared with 1Q:06.
Funding
Pegasus Biologics announced that it has closed a $20 million Series C financing led by ONSET Ventures. Other investors in the round include existing investors Three Arch Partners, Frazier Healthcare Ventures and new investor Affinity Capital Management. This financing round brings the company’s total private equity investment to just nearly $32 million, which the company plans to use to expand its market and develop its pipeline.
Service Agreement
TiGenix and Cognate BioServices have partnered to manage a U.S.-based cell expansion facility. Located in Memphis, the space that was originally designed and made operational for the production of autologous cell therapy products. Both companies will share maintenance costs and use part of the facility for their cell-production activities.
Invitrogen Corporation, a provider of life science technologies for drug and disease research, entered into a supply and commercialization agreement with Cytori Therapeutics to offer Cytori's adipose-derived stem cell-based products to life science researchers. Invitrogen manufactures reagents used to isolate, characterize, expand and differentiate stem cells, such as the new MesenPRO RS™ medium.
Clinical
Impliant, Inc. announced positive results from a multi-center international study on a series of 32 TOPS™ System patients. Findings included a 40-point improvement in the Oswestry Disability Index (57 to 17 at two-years), a 64-point improvement in Visual Analog Scale (84 to 20 at two-years), and a 36-point improvement in the Zurich Claudication Score (58 to 22 at two-years). The TOPS™ System is a total posterior arthroplasty device for spinal stenosis indications.
Operations
Zimmer announced a $66.0 million plan to expand its manufacturing and distribution facilities in Warsaw, Indiana. The project is expected to create 140 new jobs and add 12,000 square feet to Zimmer's manufacturing plant and 10,000 square feet to its distribution center. The company will receive up to $1.9 million in tax credits from the Indiana Economic Development Corp.
ApaTech announced the establishment of Berlin-based ApaTech GmbH and the formation of a direct sales force to sell Actifuse in Germany. ApaTech sales representatives will initially be located in Western, Southern and Eastern Germany with a further expansion of the sales team to follow. ApaTech GmbH is headquartered in Berlin. Additionally, ApaTech expanded its direct UK sales team, doubling the number of UK sales territories.
Appointment
Cytori Therapeutics Chairman Marshall G. Cox retired last week, and Ronald D. Henriksen has been named interim chairman. Cox will provide consulting services to the company and has been named chairman emeritus.
