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Hillrom beats The Street in Q3, raises guidance

Hillrom (NYSE: HRC) shares slightly dipped today on third-quarter results that beat the consensus forecast.

The Chicago-based company posted profits of $49.2 million, or 74¢ per share, on sales of $717.7 million for the three months ended June 30, 2021, for a -47.6% bottom-line slide on a sales decline of -6.5%.

Adjusted to exclude one-time items, earnings per share were $1.38, 4¢ ahead of Wall Street, where analysts were looking for sales of $708.3 million.

Hillrom noted that profit and revenue dips were particularly spurred by the company’s third-quarter performance in 2020, which benefited from a surge in one-time COVID-19-related revenue of approximately $130 million and adjusted EPS of $0.60.

“Our dedicated, global team continues to support customers’ evolving needs and we remain encouraged by the building momentum and recovery in our underlying business. This resulted in third-quarter financial performance that exceeded exp…

Hillrom stock shoots up on news of potential acquisition by Baxter

Hillrom (NYSE: HRC) stock rocketed today after a Wall Street Journal report that Baxter (NYSE: BAX) is in the early stages of talks to acquire the company.

WSJ cited people familiar with the matter, who added that there was no guarantee the two companies will reach an agreement.

HRC shares are up 8.7% to $134.49 apiece in afternoon trading. BAX shares are down slightly at $81.99. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, is up slightly.

Senior research analyst Mike Matson at Needham & Co. noted that a deal would make some sense since the two companies have minimal product overlap and Hillrom’s connected care and patient monitoring focus could be complementary to Baxter’s hospital care portfolio. “However, we are skeptical that HRC’s mid-single-digit organic growth would prove very accretive to BAX’s revenue growth rate, which we believe is similar …

Report: Medtech dollars, deals hit new highs in first half of 2021

Fueled at least in part by exceptionally strong IPO and M&A markets, hedge funds, venture capitalists, private equity firms and corporate investors are committing more time and money into privately held medical devices companies, according to a new “Healthcare Investments and Exits” report issued by Silicon Valley Bank.

The report examining the first half of 2021 outlines deals and dollars committed to all sectors within healthcare — while also tracking exiting opportunities for investors. An examination of the medical device portion of the report reveals many promising trends.

First, capital commitments are up. Looking at dollars raised, U.S. and European medical device startups raised $4.6 billion in the first half of this year, putting 2021 on pace to eclipse totals dollars raised in 2020 ($5.2 billion raised) and 2019 ($4.8 billion raised.) It’s worth noting that European startups accounted for 34% of the dollars raised by medical device companies, up f…

MedTech 100 roundup: Industry shatters all-time best with remarkable rise

The medtech industry’s steady growth provided optimism in recent weeks, but an unforeseen leap sees it hitting new heights now.

MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished last week (July 16) at 145.88 points, a remarkable 27.1% rise week-over-week, registering by far the greatest increase the index has seen since its inception.

Remarkably, the industry’s July 9 tally of 114.79 points a week prior had, at that point, been known to be the index’s all-time best to date. The new high set on Friday of last week totals an increase of 31.09 points.

Medtech’s performance continues to reflect an overall rebound from the struggles brought on by the COVID-19 pandemic, too, especially after this latest unpredictable rise. The industry has registered a 58% increase from the pre-pandemic high of 92.32 (set on Feb. 19, 2020), plus it has fully eclipsed 100% growth from the mid-pand…

Court orders Hillrom to proceed with BardyDx acquisition

The Court of Chancery in the state of Delaware ordered Hillrom (NYSE:HRC) to complete its planned acquisition of BardyDx.

In March, Hillrom reversed course on the planned $375 million acquisition of Bardy Diagnostics and its Carnation Ambulatory Monitor, or CAM patch, claiming that closing conditions weren’t met.

Hillrom’s u-turn came in the wake of regional Medicare administrative contractor Novitas Solutions publishing significant rate cuts for external EKG monitoring, creating a setback for the technology, which could serve as an improvement over traditional Holter monitors.

The Delaware court’s opinion found that the Medicare rate cuts did not qualify as a material adverse event (MAE) that would allow Hillrom out of the deal. The opinion, given on July 9, noted that Hillrom did not prove that the new rates would not be changed.

Vice Chancellor Joseph Slights III ruled in favor of Bardy but did not order for Hillrom to provide…

Hillrom dips despite Street-beating Q2, raised guidance

Hillrom (NYSE:HRC) shares dipped slightly despite second-quarter results that beat the consensus forecast.

The Chicago-based company posted profits of $87.1 million, or $1.30 per share, on sales of $762 million for the three months ended March 31, 2021, for an 85.7% bottom-line gain on sales growth of 5.4%.

Adjusted to exclude one-time items, earnings per share were $1.73, 30¢ ahead of Wall Street, where analysts were looking for sales of $732.2 million.

“Broad-based recovery continues to build across our portfolio, resulting in stronger-than-expected financial results for the fiscal second quarter,” Hillrom president & CEO John Groetelaars said in a news release. “We are pleased to be raising our financial guidance for the year given improved underlying performance and strong execution against our strategic priorities. Our ongoing transformation strengthens our ability to unlock significant value for patients, caregivers and shareh…

MedTech 100 roundup: Industry sees largest fall since October

The medtech industry’s hot start to 2021 has finally come to a full halt after stocks fell harder than they had in more than four months.

MassDevice‘s MedTech 100 index ended the week (March 5) at 103.3 points, marking a -3.1% dip from the 106.65-point mark set one week before (Feb. 26). In less than a month, the fall has been more than seven points from the end-of-week tally of 110.63 points on Feb. 12.

Medtech’s lowest point of the week was on Thursday, March 4, when it fell to 102.85. The overall drop of about five points from the 107.88-point mark set on Monday, March 1, is the largest dip since the index slid from 97.2 to 91.01 between Oct. 23, 2020, and Oct. 30, 2020.

The all-time best for the index was 110.96, set just three days after that. The index had never reached even the 100-point mark before November 2020.

Still, the industry is in much better condition than it was around this time last year. Medtech’s latest mark means …

DTW Podcast: Can AI, advanced imaging and robotics “democratize” surgery?

A new generation of digital surgery systems will level the playing field for surgeons giving them artificial intelligence, robotic tools and other assistive technologies.

In three interviews in this week’s DeviceTalks Weekly Podcast, leaders form Asensus, ActivSurgical and Memic explain how their systems will improve surgeon performance, reduce errors, and deliver the “democratization” of surgical robotics.

Guests this week include

Anthony Fernando, CEO of Asensus Surgical (formerly Transenterix), outlines the company’s bid to push its Sehance system as a solution for laparoscopic procedures. Fernando, who took over as CEO in 2019, explains why the company’s stock crashed in 2019 and details the changes that he says has started the company’s turnaround. Senhance offers more responsive surgical tools along with data that will help with surgical training and scheduling.

Todd Usen, CEO of ActivSurgical, left a job he loved at Olympus to lead a compan…

Hillrom execs change their minds on BardyDx acquisition

Hillrom (NYSE:HRC) says closing conditions have not been met when it comes to the company’s previously planned $375 million acquisition of Bardy Diagnostics and its Carnation Ambulatory Monitor, or CAM patch.

In response, BardyDx has sued Hillrom in the Delaware Court of Chancery, Hillrom said in a March 1 news release.

The move comes more than a month after the regional Medicare administrative contractor Novitas Solutions published significant rate cuts for external EKG monitoring — a setback for a technology that could prove an improvement over traditional Holter monitors.

Hillrom said in its news release: “As a result of the unexpected Novitas reimbursement rate reduction, Hillrom has asserted that a ‘company material adverse effect’ has occurred, and therefore the closing conditions have not been satisfied.”

Another major company in the external EKG monitoring space — iRhythm Technologies (NASDAQ: IRTC) — has been…

Hillrom has a serious overhead lift recall

FDA has designated Hillrom’s recall of its Liko Multirall 200 overhead lift as Class I, its most serious level.

Hillrom (NYSE:HRC) initiated the recall on Dec. 18, 2020. It involves 11,600 devices, which are used to move patients from room to room. The recalled devices have a risk of the Q-link strap locks not attaching to the S65 carriage hook as they should. When the strap lock does not attach, the motor or patient may fall, according to the FDA warning letter. Use of the Liko Multirall 200 lift could result in adverse events such as serious injury or death.

FDA said there have been 34 complaints about the device and 22 reports of serious injuries. Two deaths have been reported.

Hillrom said in its recall notice the company will contact customers to plan the replacement of the Q-Link strap with the Q-Link 2 strap once units have been identified and the response form is returned.

Devices affected by the recall were manufactured between Dece…

These 5 medtech companies made it into the top 200 of Forbes’ best places to work list

Johnson & Johnson, Steris, Philips, Fujifilm Holdings and Boston Scientific were recently named among Forbes’ best large employers in America, based on feedback from their employees.

Forbes partnered with a market research firm to survey 50,000 Americans working for businesses with at least 1,000 employees. Survey participants were asked to rate their willingness to recommend their employer to friends and family and to nominate a business that wasn’t their own.

Get the full story on our sister site, Medical Design & Outsourcing.

These 5 medtech companies made it into the top 200 of Forbes’ best places to work list

Johnson & Johnson, Steris, Philips, Fujifilm Holdings and Boston Scientific were recently named among Forbes’ best large employers in America, based on feedback from their employees.

Forbes partnered with a market research firm to survey 50,000 Americans working for businesses with at least 1,000 employees. Survey participants were asked to rate their willingness to recommend their employer to friends and family and to nominate a business that wasn’t their own.

Johnson & Johnson (NYSE:JNJ) ranked 84 out of the full list of 500. The New Brunswick, N.J.-based company has a 4.2 out of 5-star rating on the job board website Glassdoor. Johnson & Johnson, founded in 1886, employs over 132,000 people. Its medical device segment generated $25.96 billion in revenue in 2019.

Mentor, Ohio-based Steris (NYSE:STE) ranked 105 on Forbes’s list of the best large employers in America. The company has a 3.6 out of 5-star rating on Glassdoor. …