Syneron Medical Ltd. and Candela Corporation to Merge Creating a Leading Global Aesthetic Device Company
Wed Sep 9, 2009 5:00am EDT YOKNEAM, ISRAEL and WAYLAND, MA,
Syneron Medical Ltd. (NASDAQ: ELOS) and Candela Corporation (NASDAQ: CLZR) announced today that they have entered into a definitive agreement to combine the companies in an all stock transaction. The transaction is expected to be completed by year-end 2009.
Monday, September 28, 2009
Exit: Aspect Medical Systems Sold To Covidien
Covidien Announces Definitive Agreement to Acquire Aspect Medical Systems
COV's purchase of ASPM, a developer and marketer of a brain monitoring product, adds new products to COV's underperforming Respiratory and Monitoring business (~14% of FY2008 sales). Aspect's main product, the Bispectral Index (BIS), measures the effects of anesthesia and sedatives on the brain. ASPM will also bring in an R&D organization as well as further expand COV's monitoring presence in the operating room.
Not Material Financially. COV will pay ~$210M in cash (~$12 per share), net of cash and investments acquired. In 2008, ASPM had ~$99M (+2% y/y) in sales or less than 1% of COV's total sales. Excluding a one-time restructuring charge, COV expects the transaction to be slightly dilutive to FY2010 EPS.
COV's purchase of ASPM, a developer and marketer of a brain monitoring product, adds new products to COV's underperforming Respiratory and Monitoring business (~14% of FY2008 sales). Aspect's main product, the Bispectral Index (BIS), measures the effects of anesthesia and sedatives on the brain. ASPM will also bring in an R&D organization as well as further expand COV's monitoring presence in the operating room.
Not Material Financially. COV will pay ~$210M in cash (~$12 per share), net of cash and investments acquired. In 2008, ASPM had ~$99M (+2% y/y) in sales or less than 1% of COV's total sales. Excluding a one-time restructuring charge, COV expects the transaction to be slightly dilutive to FY2010 EPS.
Friday, August 28, 2009
R.I.P. Biopure
Boston Globe
End of road for Biopure
Company finishes sale of its assets
By D.C. Denison, Globe Staff August 25, 2009
Biopure Corp., the Cambridge company that was working to develop a human blood substitute, has officially expired.
Last month, the struggling biotech filed for Chapter 11 bankruptcy protection, and yesterday it said an auction of the company’s assets had been completed. OPK Biotech LLC, a Delaware company, will pay $4 million to get what remains of Biopure. OPK also agreed to purchase for $850,000 some laboratory space and a 50 percent interest in a partnership that owns the Cambridge building housing Biopure’s headquarters. Both deals are expected to close within 30 days.
“This is the end of the road for Biopure,’’ said Zafiris G. Zafirelis, its chief executive.
The firm was once one of the state’s most promising biotechs. Hemopure, the blood substitute made from cow hemoglobin, long seemed on the verge of emerging as a life-saving breakthrough. It had the potential to be used in emergency situations - such as at accident scenes or on battlefields - when supplies of human blood might be limited. But Biopure could never clear regulatory hurdles that would have turned the substitute into a mainstream medical product.
Hemopure showed many benefits compared with real blood: a three-year shelf life, the ability to be used by patients of any blood type, and freedom from diseases and pathogens that could be transmitted by human blood.
The path to Food and Drug Administration approval, however, was rocky. Although the Navy was interested in using the experimental product to treat military personnel wounded in battle, the FDA consistently rejected efforts by Biopure and the Navy to test it in clinical trials, citing safety worries and other concerns.
In a regulatory filing, Biopure said Biopure stockholders won’t receive much money from proceeds of the sale to OPK.
Still, Zafirelis tried to find a hint of optimism in the company’s final chapter. “I’m hoping that OPK Biotech will continue to develop Biopure’s products,’’ he said.
D.C. Denison can be reached at denison@globe.com.
End of road for Biopure
Company finishes sale of its assets
By D.C. Denison, Globe Staff August 25, 2009
Biopure Corp., the Cambridge company that was working to develop a human blood substitute, has officially expired.
Last month, the struggling biotech filed for Chapter 11 bankruptcy protection, and yesterday it said an auction of the company’s assets had been completed. OPK Biotech LLC, a Delaware company, will pay $4 million to get what remains of Biopure. OPK also agreed to purchase for $850,000 some laboratory space and a 50 percent interest in a partnership that owns the Cambridge building housing Biopure’s headquarters. Both deals are expected to close within 30 days.
“This is the end of the road for Biopure,’’ said Zafiris G. Zafirelis, its chief executive.
The firm was once one of the state’s most promising biotechs. Hemopure, the blood substitute made from cow hemoglobin, long seemed on the verge of emerging as a life-saving breakthrough. It had the potential to be used in emergency situations - such as at accident scenes or on battlefields - when supplies of human blood might be limited. But Biopure could never clear regulatory hurdles that would have turned the substitute into a mainstream medical product.
Hemopure showed many benefits compared with real blood: a three-year shelf life, the ability to be used by patients of any blood type, and freedom from diseases and pathogens that could be transmitted by human blood.
The path to Food and Drug Administration approval, however, was rocky. Although the Navy was interested in using the experimental product to treat military personnel wounded in battle, the FDA consistently rejected efforts by Biopure and the Navy to test it in clinical trials, citing safety worries and other concerns.
In a regulatory filing, Biopure said Biopure stockholders won’t receive much money from proceeds of the sale to OPK.
Still, Zafirelis tried to find a hint of optimism in the company’s final chapter. “I’m hoping that OPK Biotech will continue to develop Biopure’s products,’’ he said.
D.C. Denison can be reached at denison@globe.com.
Thursday, August 6, 2009
Layoffs: Analogic Reduces Workforce and Consolidates Operations
Press Release
Aug 5, 2009, 2:34 p.m. EST
Analogic Reduces Workforce and Consolidates Operations
PEABODY, Mass., Aug 5, 2009 (GlobeNewswire ) -- Analogic Corporation ... announced that it has reduced its workforce by 6% worldwide and has vacated a portion of its Canton, Massachusetts facility. As a result, the Company will record a $3.1 million charge in the fourth fiscal quarter of 2009. The Company expects this action will result in annual expense savings of approximately $5 million, a portion of which will fund strategic growth initiatives.
The reduction in force, which affects 85 people across the business, will result in a $2.1 million charge for severance and related costs. In addition, the Company vacated approximately half of its Copley Controls facility in Canton, moving certain operations to its Peabody facility. Accordingly, the Company will record a charge of $1.0 million, which represents the ongoing lease payments for the vacated portion over the remainder of the lease term, which ends in 2011.
"We recognize that workforce reductions are difficult for everyone", commented Jim Green, president and CEO. "However, we have a commitment to improve our overall operational effectiveness and fund the ongoing investments needed to position Analogic for future growth. While market conditions over the past few quarters have been difficult, we remain optimistic as the market appears to be stabilizing."
Aug 5, 2009, 2:34 p.m. EST
Analogic Reduces Workforce and Consolidates Operations
PEABODY, Mass., Aug 5, 2009 (GlobeNewswire ) -- Analogic Corporation ... announced that it has reduced its workforce by 6% worldwide and has vacated a portion of its Canton, Massachusetts facility. As a result, the Company will record a $3.1 million charge in the fourth fiscal quarter of 2009. The Company expects this action will result in annual expense savings of approximately $5 million, a portion of which will fund strategic growth initiatives.
The reduction in force, which affects 85 people across the business, will result in a $2.1 million charge for severance and related costs. In addition, the Company vacated approximately half of its Copley Controls facility in Canton, moving certain operations to its Peabody facility. Accordingly, the Company will record a charge of $1.0 million, which represents the ongoing lease payments for the vacated portion over the remainder of the lease term, which ends in 2011.
"We recognize that workforce reductions are difficult for everyone", commented Jim Green, president and CEO. "However, we have a commitment to improve our overall operational effectiveness and fund the ongoing investments needed to position Analogic for future growth. While market conditions over the past few quarters have been difficult, we remain optimistic as the market appears to be stabilizing."
Tuesday, July 28, 2009
Lifeline: NxStage
Company press release:
NxStage Announces Closing of $40 Million Debt Financing with Asahi Kasei Kuraray Medical
LAWRENCE, Mass., June 5
NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today announced it has completed the closing of its previously announced $40 million debt financing with its strategic alliance partner, Asahi Kasei Kuraray Medical. The Company used approximately $30 million of the proceeds to pay off its entire debt obligation, including prepayment and other transaction fees, owed under its GE credit facility. As a result, NxStage anticipates taking a pre-tax charge of approximately $2 million for the second quarter of 2009 related to prepayment and other transaction fees. The remaining proceeds of approximately $10 million will be used for general operating purposes.
NxStage Announces Closing of $40 Million Debt Financing with Asahi Kasei Kuraray Medical
LAWRENCE, Mass., June 5
NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today announced it has completed the closing of its previously announced $40 million debt financing with its strategic alliance partner, Asahi Kasei Kuraray Medical. The Company used approximately $30 million of the proceeds to pay off its entire debt obligation, including prepayment and other transaction fees, owed under its GE credit facility. As a result, NxStage anticipates taking a pre-tax charge of approximately $2 million for the second quarter of 2009 related to prepayment and other transaction fees. The remaining proceeds of approximately $10 million will be used for general operating purposes.
R.I.P. Epix Pharmaceuticals
July 21, 2009 Boston Globe
Cash-strapped Epix Pharmaceuticals Inc. said it is winding down operations and looking to proceed to "an orderly liquidation of its assets" after attempts to obtain additional financing were unsuccessful.
Epix, [was] based in Lexington and ... had been working with the British drug maker GlaxoSmithKline on a potential treatment for Alzheimer's disease
In a press release, Epix said that "in light of the company’s lack of capital and inability to obtain additional financing or consummate a strategic transaction, it has entered into an Assignment for the Benefit of Creditors, effective immediately, in accordance with Massachusetts law (the “Assignment”). The purpose of the Assignment is to conclude the company’s operations and provide for an orderly liquidation of its assets."
To read some previous Globe coverage that referenced Epix, please click here.
Cash-strapped Epix Pharmaceuticals Inc. said it is winding down operations and looking to proceed to "an orderly liquidation of its assets" after attempts to obtain additional financing were unsuccessful.
Epix, [was] based in Lexington and ... had been working with the British drug maker GlaxoSmithKline on a potential treatment for Alzheimer's disease
In a press release, Epix said that "in light of the company’s lack of capital and inability to obtain additional financing or consummate a strategic transaction, it has entered into an Assignment for the Benefit of Creditors, effective immediately, in accordance with Massachusetts law (the “Assignment”). The purpose of the Assignment is to conclude the company’s operations and provide for an orderly liquidation of its assets."
To read some previous Globe coverage that referenced Epix, please click here.
Saturday, July 18, 2009
R.I.P. Biopure
xconomy.com:
Biopure Files for Bankruptcy
7/17/09
Biopure has filed for Chapter 11 bankruptcy, the company announced late yesterday. The Cambridge, MA-based firm has agreed to sell its assets to OPK Biotech, but Biopure will also seek competitive bids for the assets in an auction supervised by the bankruptcy court in Massachusetts.
Biopure Files for Bankruptcy
7/17/09
Biopure has filed for Chapter 11 bankruptcy, the company announced late yesterday. The Cambridge, MA-based firm has agreed to sell its assets to OPK Biotech, but Biopure will also seek competitive bids for the assets in an auction supervised by the bankruptcy court in Massachusetts.
Tuesday, May 19, 2009
Layoffs: Medtronic to cut up to 1,800 jobs
AP - 5/19/09
Medical device maker Medtronic said Tuesday it would cut up to 1,800 employees after its fiscal fourth-quarter plunged 69 percent on slipping sales and restructuring and other charges.
About 400 employees already have accepted buyout offers and will leave the company by the end of the month.
Medical device maker Medtronic said Tuesday it would cut up to 1,800 employees after its fiscal fourth-quarter plunged 69 percent on slipping sales and restructuring and other charges.
About 400 employees already have accepted buyout offers and will leave the company by the end of the month.
Thursday, April 16, 2009
Layoffs: Cynosure
Press release:
Cynosure Announces Preliminary Financial Results for the First Quarter of 2009
WESTFORD, Mass., April 15, 2009
"We are continuing to adjust our operating expenses in response to the current market conditions and reduced revenue levels," [CEO Mike] Davin said. "In recent weeks we have cut an additional 25 positions from our worldwide workforce. This reduction has been partially offset by the opening in February of our direct sales office in Korea and the associated hiring of 11 employees, bringing our current total worldwide headcount to 271 employees.
Cynosure Announces Preliminary Financial Results for the First Quarter of 2009
WESTFORD, Mass., April 15, 2009
"We are continuing to adjust our operating expenses in response to the current market conditions and reduced revenue levels," [CEO Mike] Davin said. "In recent weeks we have cut an additional 25 positions from our worldwide workforce. This reduction has been partially offset by the opening in February of our direct sales office in Korea and the associated hiring of 11 employees, bringing our current total worldwide headcount to 271 employees.
Monday, April 6, 2009
R.I.P. Codon Devices
from PE Week Wire:
Codon Devices, a Cambridge, Mass.-based synthetic biology company, is shutting down after failing to raise new funding, according to The Boston Globe. The company had raised over $31 million from firms like Alloy Ventures, Flagship Ventures, Khosla Ventures, Highland Capital Partners, Tactics II Ventures and Kleiner Perkins Caufield & Byers. www.codondevices.com
Codon Devices, a Cambridge, Mass.-based synthetic biology company, is shutting down after failing to raise new funding, according to The Boston Globe. The company had raised over $31 million from firms like Alloy Ventures, Flagship Ventures, Khosla Ventures, Highland Capital Partners, Tactics II Ventures and Kleiner Perkins Caufield & Byers. www.codondevices.com
Wednesday, April 1, 2009
Layoffs: Pressure BioSciences
PRESS RELEASE
Pressure BioSciences, Inc. Reports 2008 Financial Results, Provides Business Update
SOUTH EASTON, Mass., Mar 31, 2009
Pressure BioSciences, Inc. (PBIO) ("PBI" and the "Company") today announced financial results for the fiscal year ended December 31, 2008 and provided a business update.
...
Joseph L. Damasio, Jr., Corporate Controller commented: "During the second half of 2008, we instituted a number of cost reduction measures, including a comprehensive restructuring program to significantly reduce expenditures, centralize core operations, and refocus our business strategy in specific areas where our products had already found market acceptance.
...
We expect that our operating costs and expenses will continue to decrease during the year, and that our resulting cash burn should be less than $600,000 per quarter, on average
...
Pressure BioSciences, Inc. Reports 2008 Financial Results, Provides Business Update
SOUTH EASTON, Mass., Mar 31, 2009
Pressure BioSciences, Inc. (PBIO) ("PBI" and the "Company") today announced financial results for the fiscal year ended December 31, 2008 and provided a business update.
...
Joseph L. Damasio, Jr., Corporate Controller commented: "During the second half of 2008, we instituted a number of cost reduction measures, including a comprehensive restructuring program to significantly reduce expenditures, centralize core operations, and refocus our business strategy in specific areas where our products had already found market acceptance.
...
We expect that our operating costs and expenses will continue to decrease during the year, and that our resulting cash burn should be less than $600,000 per quarter, on average
...
Thursday, March 26, 2009
FumeRunner: Oscient Pharmaceuticals receives "going concern" warning from auditors
By Val Brickates Kennedy
BOSTON (MarketWatch) -- Oscient Pharmaceuticals (OSCI) said early Wednesday in its fourth quarter 2008 financial report that its auditors have warned it may not be able to continue as a going concern because of lack of cash. The biotechnology company reported that while it had 2008 revenues of about $87 million, it had a net loss of $65 million and only has $17 million in cash on hand. Oscient said that it has engaged Broadpoint Capital to explore strategic options for the company, including a possible sale. Waltham, Mass.-based Oscient, which markets the cardiovascular drug Antara and antibiotic Factive, has 213 employees.
Tuesday, March 17, 2009
Lifeline: NxStage
NxStage Announces Credit Facility Amendment --Company Completes First Step to Restructure Repayment Schedule
LAWRENCE, Mass., March 16, 2009 /PRNewswire-
NxStage Medical, Inc. today announced that it has entered into an amendment of its November 21, 2007 credit and security agreement with a group of lenders led by GE Business Financial Services Inc. The amendment postpones principal payments under the term loan for three months, from April through June 2009, decreases the minimum net revenue covenants and adds certain minimum liquidity and minimum adjusted consolidated EBITDA targets.
Robert Brown, Chief Financial Officer of NxStage Medical. "This amendment provides the Company with additional flexibility to remain in compliance with its terms and covenants, and the revised facility terms reflect the impact of the current economic conditions."
In connection with this amendment, the Company paid a $0.5 million amendment fee and agreed to increase the interest rate on the facility's term loan from 10.42% to 11.12% per annum. Interest on any borrowings under the revolving credit facility now includes a LIBOR floor of 4% plus 6.5%. Previously, the interest rate for the revolver had no floor on LIBOR. Additional security was also provided by expanding the collateral base to include all intellectual property held by NxStage.
LAWRENCE, Mass., March 16, 2009 /PRNewswire-
NxStage Medical, Inc. today announced that it has entered into an amendment of its November 21, 2007 credit and security agreement with a group of lenders led by GE Business Financial Services Inc. The amendment postpones principal payments under the term loan for three months, from April through June 2009, decreases the minimum net revenue covenants and adds certain minimum liquidity and minimum adjusted consolidated EBITDA targets.
Robert Brown, Chief Financial Officer of NxStage Medical. "This amendment provides the Company with additional flexibility to remain in compliance with its terms and covenants, and the revised facility terms reflect the impact of the current economic conditions."
In connection with this amendment, the Company paid a $0.5 million amendment fee and agreed to increase the interest rate on the facility's term loan from 10.42% to 11.12% per annum. Interest on any borrowings under the revolving credit facility now includes a LIBOR floor of 4% plus 6.5%. Previously, the interest rate for the revolver had no floor on LIBOR. Additional security was also provided by expanding the collateral base to include all intellectual property held by NxStage.
Lifeline: Insulet
Insulet Receives $60 Million Funding Commitment --Credit Facility Secured with Deerfield Management
BEDFORD, Mass, March 16, 2009 /PRNewswire
Insulet today announced that it has entered into an agreement with Deerfield Management Company to provide Insulet with up to $60 million in financing through a flexible credit facility.
Duane DeSisto, President and Chief Executive Officer of Insulet Corporation: "This $60 million facility is an attractive form of financing that limits dilution for our shareholders and gives Insulet access to capital to fuel our growth."
Under the terms of the agreement, Deerfield will provide Insulet with $27.5 million within fifteen business days of signing and has committed up to $32.5 million in additional funding to be drawn by Insulet at its discretion over the next twenty months based on the achievement of certain financial performance milestones. Any amounts drawn will accrue interest until maturity at a rate of 9.75 percent per annum which is payable on a quarterly basis. Insulet will pay a 2.75 percent per annum interest rate on undrawn amounts. The funds drawn are repayable in September 2012.
BEDFORD, Mass, March 16, 2009 /PRNewswire
Insulet today announced that it has entered into an agreement with Deerfield Management Company to provide Insulet with up to $60 million in financing through a flexible credit facility.
Duane DeSisto, President and Chief Executive Officer of Insulet Corporation: "This $60 million facility is an attractive form of financing that limits dilution for our shareholders and gives Insulet access to capital to fuel our growth."
Under the terms of the agreement, Deerfield will provide Insulet with $27.5 million within fifteen business days of signing and has committed up to $32.5 million in additional funding to be drawn by Insulet at its discretion over the next twenty months based on the achievement of certain financial performance milestones. Any amounts drawn will accrue interest until maturity at a rate of 9.75 percent per annum which is payable on a quarterly basis. Insulet will pay a 2.75 percent per annum interest rate on undrawn amounts. The funds drawn are repayable in September 2012.
Friday, March 6, 2009
FumeRunner: Insulet
Insulet Reports Fourth Quarter and Year End 2008 Results
--Company Records 172% Year over Year Revenue Growth and First Full Quarter of Gross Profit --
BEDFORD, Mass., March 5, 2009 /PRNewswire-
...
As of December 31, 2008, the Company's cash and cash equivalents totaled $56.7 million
...
2009 Outlook & Organizational Expansion
...
The Company expects its 2009 operating loss to be in the range of $50 to $60 million.
--Company Records 172% Year over Year Revenue Growth and First Full Quarter of Gross Profit --
BEDFORD, Mass., March 5, 2009 /PRNewswire-
...
As of December 31, 2008, the Company's cash and cash equivalents totaled $56.7 million
...
2009 Outlook & Organizational Expansion
...
The Company expects its 2009 operating loss to be in the range of $50 to $60 million.
Wednesday, March 4, 2009
Layoffs: Acusphere
Wednesday, March 4, 2009
Acusphere to cut jobs, close Watertown facility
By Mass High Tech staff
Watertown-based pharmaceutical development company Acusphere Inc. has announced cost reduction plans that include 40 job cuts, the closing of its Watertown facility, consolidation at the company’s Tekwsbury manufacturing site and a Form 15 filing with the U.S. Securities and Exchange Commission. The restructuring is related to company efforts to add cash flow and help with U.S. Food and Drug Administration discussions over the approval of its Imagify for Injectable Suspension product.
Acusphere (OTCBB: ACUS) said the 40 job losses represent about two-thirds of the company staff and will affect roles in drug development, quality systems, manufacturing, regulatory, finance and administration. Company senior vice president and chief financial officer Lawrence Gyenes is included in the expected layoffs, with no plan to replace his position, Acusphere officials reported. The workforce reduction will save the company about $3.9 million annually.
The company also signed an agreement to end the lease on its Watertown headquarters, which is expected to save Acusphere about $3.6 million through 2012.The voluntary Form 15 filing calls for the suspension of Acusphere’s SEC reporting need. As a result, Acusphere’s common stock will not be able to be traded on any national stock exchange, nor the OTC Bulletin Board; Trading may still take place on the Pink Sheets.
Acusphere to cut jobs, close Watertown facility
By Mass High Tech staff
Watertown-based pharmaceutical development company Acusphere Inc. has announced cost reduction plans that include 40 job cuts, the closing of its Watertown facility, consolidation at the company’s Tekwsbury manufacturing site and a Form 15 filing with the U.S. Securities and Exchange Commission. The restructuring is related to company efforts to add cash flow and help with U.S. Food and Drug Administration discussions over the approval of its Imagify for Injectable Suspension product.
Acusphere (OTCBB: ACUS) said the 40 job losses represent about two-thirds of the company staff and will affect roles in drug development, quality systems, manufacturing, regulatory, finance and administration. Company senior vice president and chief financial officer Lawrence Gyenes is included in the expected layoffs, with no plan to replace his position, Acusphere officials reported. The workforce reduction will save the company about $3.9 million annually.
The company also signed an agreement to end the lease on its Watertown headquarters, which is expected to save Acusphere about $3.6 million through 2012.The voluntary Form 15 filing calls for the suspension of Acusphere’s SEC reporting need. As a result, Acusphere’s common stock will not be able to be traded on any national stock exchange, nor the OTC Bulletin Board; Trading may still take place on the Pink Sheets.
Friday, February 27, 2009
Layoffs: Medtronic
http://money.cnn.com/news/newsfeeds/articles/djf500/200902261058DOWJONESDJONLINE000959_FORTUNE5.htm
Medtronic Freezing Pay, Eying Layoffs Amid Econ Pressure
February 26, 2009: 10:58 AM ET
Medical-devices giant Medtronic Inc. (MDT) plans to freeze its workers' base salary and trim compensation for its executive team in an effort to control costs while it faces economic and market pressures.
The Minneapolis-based company is also considering layoffs, although no specific decisions about how many employees could be cut, or from which areas, have been made, spokesman Steve Cragle said Thursday. Reductions would start in the 2010 fiscal year that begins May 1.
Chief Executive William A. Hawkins "discussed the need for some restructuring or downsizing of the workforce" during a meeting with workers earlier this week, Cragle said. Medtronic has about 39,000 workers overall.
The company also discussed internal moves designed to control costs, such as the salary freeze that will start in the new fiscal year and plans for a 5% executive pay cut.
The company pegged the moves to the turbulent global economic environment, which is expected to pressure certain parts of its business. Medtronic has also dealt with tough competition and eroding market share in some of its key businesses, including the market for implantable cardioverter defibrillators, or ICDs.
Hawkins in January ratcheted back Medtronic's long-term sales growth outlook to a 5% to 8% range, but the company continues to target earnings growth in a double-digit range, indicating the need to control costs.
Because ICDs protect patients at risk for sudden cardiac death, they aren't viewed as vulnerable to an economic slump. But Hawkins noted during Medtronic's recent quarterly earnings call that other parts of the company are, including products that fix spinal problems, along with products in Medtronic's diabetes and surgical technologies businesses.
"There is a lot of uncertainty in the global economy right now and Medtronic is not immune to that," spokesman Cragle said.
He noted Medtronic feels it had a solid fiscal third quarter, in which the company showed some signs of stability in key markets where it has struggled with competitive pressure.
"Despite that performance, we still see a lot of uncertainty ahead," Cragle said.
Medtronic announced plans in May last year to trim about 1,100 jobs as it realigned the workforce, with cuts targeting businesses where growth had slowed or where the company saw a chance to improve its operating leverage. The cuts were set to take place throughout the current fiscal year, and were expected at that time to be offset to an unspecified degree with hiring in faster-growing businesses.
Medtronic recently traded down six cents to $33.80.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com (END) Dow Jones Newswires
02-26-09 1058ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Medtronic Freezing Pay, Eying Layoffs Amid Econ Pressure
February 26, 2009: 10:58 AM ET
Medical-devices giant Medtronic Inc. (MDT) plans to freeze its workers' base salary and trim compensation for its executive team in an effort to control costs while it faces economic and market pressures.
The Minneapolis-based company is also considering layoffs, although no specific decisions about how many employees could be cut, or from which areas, have been made, spokesman Steve Cragle said Thursday. Reductions would start in the 2010 fiscal year that begins May 1.
Chief Executive William A. Hawkins "discussed the need for some restructuring or downsizing of the workforce" during a meeting with workers earlier this week, Cragle said. Medtronic has about 39,000 workers overall.
The company also discussed internal moves designed to control costs, such as the salary freeze that will start in the new fiscal year and plans for a 5% executive pay cut.
The company pegged the moves to the turbulent global economic environment, which is expected to pressure certain parts of its business. Medtronic has also dealt with tough competition and eroding market share in some of its key businesses, including the market for implantable cardioverter defibrillators, or ICDs.
Hawkins in January ratcheted back Medtronic's long-term sales growth outlook to a 5% to 8% range, but the company continues to target earnings growth in a double-digit range, indicating the need to control costs.
Because ICDs protect patients at risk for sudden cardiac death, they aren't viewed as vulnerable to an economic slump. But Hawkins noted during Medtronic's recent quarterly earnings call that other parts of the company are, including products that fix spinal problems, along with products in Medtronic's diabetes and surgical technologies businesses.
"There is a lot of uncertainty in the global economy right now and Medtronic is not immune to that," spokesman Cragle said.
He noted Medtronic feels it had a solid fiscal third quarter, in which the company showed some signs of stability in key markets where it has struggled with competitive pressure.
"Despite that performance, we still see a lot of uncertainty ahead," Cragle said.
Medtronic announced plans in May last year to trim about 1,100 jobs as it realigned the workforce, with cuts targeting businesses where growth had slowed or where the company saw a chance to improve its operating leverage. The cuts were set to take place throughout the current fiscal year, and were expected at that time to be offset to an unspecified degree with hiring in faster-growing businesses.
Medtronic recently traded down six cents to $33.80.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com (END) Dow Jones Newswires
02-26-09 1058ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Thursday, February 26, 2009
FumeRunner: Intact Medical
Intact Medical last raised money about 1 year ago.
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
According to PWC's MoneyTree Survey Q2 2008:
Website: www.intactmedical.com
$ Received: $4,911,000
Financing Sequence: 10
Investors in Q2 2008 :
Morgenthaler Ventures
Undisclosed Venture Firm
Wednesday, February 25, 2009
Layoffs: Seracare Life Sciences
SeraCare Reports First Quarter Fiscal Year 2009 Results
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
Tuesday February 17, 4:03 pm ET
...
“During the first quarter, we took a series of actions to optimize our opportunity for growth in the core business while reducing spending levels in support of our profitability improvement goals,” stated Gregory Gould, Chief Financial Officer. “The actions taken include a workforce reduction of over 10%, the suspension of annual salary increases for senior management and executives and other spending reductions across all areas of our operations. As a result of the global economic downturn, the Company did take a goodwill impairment which resulted in a $15.1 million charge this quarter, however we remain focused on growing the business and believe the value proposition of the Company’s business continues to be very promising.”
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