Musculoskeletal News Roundup 22-May-08
BY LAUREN UZDIENSKI, MAY 22, 2008
Earnings
Medtronic reported FQ4:08 revenue of $3.86 billion, representing an 18% increase over the year-ago period and beating estimates by $0.14 billion. Currency translation had a positive impact of $160.0 million. Adjusted net earnings for the quarter were $884.0 million, or $0.78 per share, beating estimates by $0.06. Spinal revenue was $869.0 million in FQ4:08, an increase of 35% over the year-ago period, which the company attributed to $150.0 million in Kyphon revenue. Biologics grew 16% over the year-ago period. The company said performance at Kyphon and in the Biologics division offset "continued competitive pressures" for the company's core spinal portfolio.
M&A
Kinetic Concepts Inc. has completed its initial tender offer for the outstanding shares of LifeCell Corp. KCI purchased the outstanding shares at a price of $51 per share, and shareholders have agreed to deliver their shares to KCI by May 21. The transaction is valued at $1.7 billion.
Product Introduction and Update
DePuy Spine launched the EXPEDIUM PEEK Rod System, a posterior instrumentation system for the thoracolumbar spine. The device is "designed to increase anterior column loading . . .and [decrease] forces on the bone screw interfaces compared to more rigid metal rod constructs." EXPEDIUM PEEK Rods are made of PEEK-OPTIMA infused with barium sulfate for radiopacity.
Smith & Nephew's Endoscopy Division launched the ARTHROGARDE Hip Access Cannula, which offers rounded ends designed to prevent soft tissue damage during hip procedures. The device is reusable, and the cannula wall has been thickened to prevent bending or wear.
minSURG Corporation announced that over 6,000 TruFUSE dowels have been implanted. The company adds that so far in 2008, they have trained and certified more than 100 physicians to perform the TruFUSE procedure. The device has been in limited distribution since 2006 and was fully launched in the U.S. in 2008.
RTI Biologics, Inc. announced the implantation of its first fresh-stored osteochondral allograft in Arkansas last week.
Legal
Kyphon has settled with the DOJ in a final resolution of a 2005 civil qui tam action filed in the Western District of New York. The company will pay $75 million plus accrued interest to the United States over allegations relating to the company's reimbursement advice. In addition to the payment, Kyphon will enter into a Corporate Integrity Agreement with the OIG.
Partnerships
Invibio Biomaterial Solutions has partnered with Smith & Nephew to develop a "next generation family of structural bioresorbable polymers." The new materials be designed for "rigid, load-bearing applications."
Appointments
Zimmer Holdings appointed Mark C. Throdahl as Group President, Global Businesses. He will oversee Zimmer Spine, Zimmer Dental, Zimmer Trauma, Zimmer Orthopaedic Surgical Products, Zimmer Computer Assisted Solutions and the Human Motion Institute. He will report to President and CEO David Dvorak. Mr. Throdahl joins the company from Consort Medical plc, where he served as CEO, and has also held roles at Becton Dickinson & Co.
