Musculoskeletal News Roundup 29-Jan-09
BY LAUREN UZDIENSKI, JANUARY 29, 2009
Earnings
Kensey Nash reported FQ2:09 revenues of $20.8 million, up 6% over the year-ago period and beating estimates by $0.4 million. Net income for the quarter was $5.2 million, or $0.44 per diluted share, beating estimates by $0.04 and representing a 110% increase over FQ2:08's diluted EPS. Sales of orthopedic products totaled $7.1 million, down 2% over the year-ago period, with spine sales down 15% and sports medicine sales up 18%. Royalty revenue from Orthovita increased 28% to $1.4 million.
NuVasive pre-announced full-year 2008 revenue of approximately $250 million, exceeding previous guidance of $245-247 million. Analysts had been forecasting 2008 revenues of $248.4 million. NuVasive added that the company expects to record $10 million in Osteocel revenue, exceeding previous guidance of $9 million, and is now launching the product through its exclusive sales force. The company also projects 2009 revenue of $345 million to $350 million.
Stryker reported 4Q:08 sales of $1.72 billion, up 8% (constant currency) over 4Q:07 and in line with the company's pre-announcement of a few weeks ago. Orthopedic implant sales increased 9%, with hip revenue flat, knee up 15%, trauma up 12% and spine up 17% (all constant currency.) Adjusted net earnings from continuing operations increased 8% to $299.0 million, or $0.74 per adjusted, diluted share, an increase of 12% over the year-ago period.
Zimmer reported 4Q:08 revenues of $1.03 billion, missing estimates by $0.6 billion and reflecting a 4% decrease from 4Q:07. Net earnings were $167.5 million reported and $224.6 million adjusted, a 19% decrease adjusted from 4Q:07. Adjusted, diluted EPS was $1.00, in line with estimates. Recon sales were down 1%; knee was up 1%, and hip was down 3%. Extremity was up 7%; dental was down 10%; trauma was up 4% and spine sales, aided by the Abbott Spine acquisition, increased by 33% (all constant currency.)
M&A
iMDs acquired Cencast Corporation, a precision metal casting company. Cencast is based in Molalla, Oregon. No financial details were disclosed.
Funding
Orthopaedic Synergy Inc., the newly-created parent company to Omni Life Science Inc. and Enztec Ltd., has raised $4.8 million of a planned $6.0 million Series A financing. Pioneer Capital Partners of Auckland, New Zealand led the investment, and Birnie Capital Partners is said to be "working on the remainder of the Series A financing," set to close in March.
Regulatory
K2M, Inc. received CE mark approval for the POTOMAC Rod System and the SERENGETI Minimally Invasive Retractor System. The company describes the Potomac as being a one-piece device made of Nitinol. The Serengeti retractor system, according to the company, allows for the "insertion of spinal implants through very small incisions."
Clinical
Mazor Surgical Technologies announced plans to begin a human clinical study with the company's GO-LIF (Guided Oblique Lumbar Interbody Fusion) surgical procedure and implants. The study, designed to demonstrate safety and efficacy, will be conducted in eight medical centers in Israel, Germany and eventually the U.S., pending additional Helsinki and IRB approvals.
Appointments
Orthofix publicly challenged one of Ramius Capital's suggestions for appointment to Orthofix's Board, noting that Peter A. Feld "is 29 years old, and considering his limited board, managerial and healthcare experience, we believe it would be difficult for shareholders, market observers or industry experts to argue that Mr. Feld would add value to Orthofix."
Osteotech, Inc. appointed Michael P. McCarthy Senior Vice President of Sales. Previously, he served as Chief Business Development Officer for Pipeline Biomedical Holdings, LLC. Additionally, the company appointed Robert C. Cohen Senior Vice President of Tissue Engineering. Cohen was formerly Chief Technology Officer at Pipeline Biomedical. McCarthy and Cohen both were at Zimmer Spine/Endius before Pipeline. They will both report directly to President and CEO Sam Owusu-Akyaw.
Miscellaneous
RCG Starboard Advisors, LLC, a subsidiary of Ramius, says that approximately 55% of the Orthofix's common stockholders have submitted written requests to call a Special General Meeting of Shareholders, and these requests have been forwarded to Orthofix. At the meeting, Ramius will propose replacements for four current members of Orthofix’s Board.
