Category Archives: Medical Device Manufacturers

Apnea Sufferers Listen Up: New Device Can Reduce Sleep Apnea Episodes by 70 Percent

PITTSBURGH, Jan. 8, 2014 – Implantation of a sleep apnea device called Inspire® Upper Airway Stimulation (UAS) therapy can lead to significant improvements for patients with obstructive sleep apnea (OSA), according to a study published today in the New England Journal of Medicine. After one year, patients using the device had an approximately 70 percent reduction in sleep apnea severity, as well as significant reductions in daytime sleepiness. The multi-center, prospective Stimulation Therapy for Apnea Reduction (STAR) trial was conducted at 22 medical centers in the United States and Europe, and is the first to evaluate the use of upper airway stimulation for sleep apnea. OSA, [...]

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JNJ’s Last Two Weeks: $5 Billion in Settlements and Stock Hits 52 Week High!

Late yesterday, Johnson & Johnson (JNJ) announced that it reached a multi-billion dollar settlement for victims of the company’s flawed all metal hip implant –the ASR XL metal hip implant system by JNJ’s DePuy Orthopedics Division. This $2.4 billion settlement comes just two weeks after another $2.2 billion settlement reached with the Department of Justice (DOJ) over alleged kickbacks and off label marketing schemes related to the company’s psychiatric drug Risperdal. And yes, JNJ’s stock price is up, as always seems to be the case when these issues settle, trading at its 52 week high. In a rare display of understatement [...]

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Varian Medical’s BOD Expands Stock Repurchase Program

It wasn’t more than a few weeks age when Varian Medical Systems announced its fourth quarter results for fiscal 2013, capping off a year where net earnings per diluted share were up 6% to $3.98. Company-wide revenues for the same quarter were up 2% over 2012′s fourth quarter performance with total revenues for fiscal year 2013 up 5% over 2012 to $2.9 billion. The company finished the fiscal year with $1.1 billion in cash and cash equivalents and $506 million of debt. Cash flow from operations was $155 million for the quarter and $455 million for the fiscal year.  And the [...]

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CareFusion Acquires GE Healthcare’s Vital Signs Division for $500M

CareFusion Corp. (NYSE: CFN) announced this morning the signing of a definitive agreement to acquire the Vital Signs division of GE Healthcare for $500 million. With annual revenue of approximately $250 million, Vital Signs is a leading manufacturer of single-patient-use consumables for respiratory care and anesthesiology. The company also markets products for temperature management and patient monitoring consumables. The acquisition will significantly expand CareFusion’s Specialty Disposables business. In fact, it will establish the company as a leader in the more than $3 billion market for respiratory and anesthesia consumables. “The acquisition of Vital Signs is well-aligned to our long-term growth strategy, helping [...]

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Our Pets: Obamacare’s Latest Victims?

Fairly or unfairly, the list of unintended consequences continues to grow… This week, you’re likely going to hear something new that will tug hard at your heartstrings. It’s all about how Obamacare is going to be held responsible for killing your pet. Think I’m kidding? The reasons have to do with our lawmakers and yet another unintended consequence of healthcare reform. “Because medical equipment and supplies will be going up in cost, that extra expense will have to be passed on to the customers…” That’s not what AARP had to say on behalf of would-be joint replacement candidates, that’s what [...]

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Medtronic Beats the Street: Pacemaker and Implantable Defibrillator Sales Drive Performance

Shares in Medtronic rose 5% yesterday –up $2.46 to $52.35–  after the company reported better-than-expected fourth-quarter earnings, primarily driven by sales of implantable heart defibrillators and pacemakers. Medtronic reported net income of $969 million, or 95 cents a share. Revenue rose 4% to $4.46 billion. Analysts had predicted earnings of $1.03 a share on revenue of $4.38 billion. In fact, excluding one-time events and gains, the company would have earned $1.12 billion, or $1.10 a share. “With our scale and breadth of innovative technology, Medtronic is clearly outperforming the market,” Medtronic’s chief executive, Omar Ishrak, said in a statement. Medtronic’s success with pacemakers and implantable defibrillators –sales [...]

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Follow the Money –VCs Betting on Remote Monitoring Technologies

$102 million and counting. Across just 12 remote patient monitoring (RPM) deals this year, that’s how much seed capital was raised. Not huge numbers, but highly respectable when you consider that these lucky 12 are true startups. With increasing velocity, investors are finally betting on the RPM market opportunity, largely driven by the new ways doctors are going to get paid. Bottom line: When you apply fee-for-performance-based compensation models to chronic disease management, RPM-based solutions jump out of the woodwork. No question that they are becoming an essential and growing part of the solution mix. ”Patient monitoring is becoming a necessary [...]

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Reducing Hospital Acquired Infections (HAIs) — New Products Should Make a Killing

As it turns out, something old is something new –again: “… In India, way back when, various cultures used copper vessels and just didn’t get sick,” said Elke Nelson, assistant manager of health tech forecast service at ECRI. “Somehow, they just knew. Now we’re starting to examine those properties in the health care space.” Although the use of copper in healthcare applications is considered brand new, the use of copper and copper alloys for frequently touched surfaces such as door and furniture hardware, bed rails, light switches and food preparation surfaces is not; it has long been known as an [...]

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Johnson & Johnson Fined in China For “Monopolistic Practices”

Apparently, even the largest monopoly in the world has its limits. China continues to prosecute foreign companies for “monopolistic practices” –which has become a catch phrase for most any multi-national business activity that exceeds the thresholds of the Foreign Corrupt Business Practices Act (FCBPA). Johnson & Johnson (JNJ) has become the latest foreign company to be accused of misconduct in China. A ruling by a Shanghai court ordered JNJ to pay $85,000 to a local distributor for violating its anti-monopoly laws. Specifically, two subsidiaries of the company were accused of setting a minimum price for the sale of surgical instruments. [...]

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Apple Shares On the Rise –Up 7.5% Since Yesterday’s Happy Hour!

There was a lot of happy hour discussion surrounding Apple’s after hours surge yesterday, based on the release of its third-quarter earnings report. Essentially, the report indicated that “the iPhone is continuing to defy gravity” and sell like hotcakes despite what many are starting to concede as a saturated market. On the flip side, Apple’s iPad news wasn’t so generous. Apple sold 14.6 million iPads in the quarter, down from 17 million in the same quarter a year ago. The decline is noteworthy as it happened despite the introduction of the iPad Mini last October, which was supposed to serve [...]

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The CMS Competitive Bidding Program Will Save Billions

Pricing transparency remains a huge issue in healthcare, but not so much in the halls of Congress. At least, not when it comes to the behavior of congressmen who continue to push against the Centers for Medicare & Medicaid Services’ (CMS) mandate to competitively bid its demand for durable medical goods and services. Thank goodness for Marilyn Tavenner, Obama’s choice to lead the CMS Competitive Bidding Program. She is standing her ground. “Competitive bidding is working, is saving taxpayers and beneficiaries billions of dollars, and ends unnecessarily high payments for common purchases like wheelchairs, diabetic testing strips, and oxygen equipment,” [...]

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Medical Device Industry Continues to Lead with its Chin

I watched the movie “Rounders” over the weekend –one of my personal favorites. In case you haven’t seen it, it’s a movie about the seamy underbelly of the poker world, where the game’s best players, those who actually make a living at it, scoff at the notion that their passion is nothing more than “a game of chance.” Why the reference to “Rounders?” Because I want to know those of you who actually believed that the medical device companies wouldn’t be passing on the 2.3% excise tax to their customers. Please raise your hands –just for future reference. Not that [...]

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Novation Dishing Out The Awards at its Annual Supplier Summit

Novation recognized 22 suppliers yesterday at its annual Supplier Summit. These awards were given in recognition of the winners’ superior service provided to the health care organization members of VHA, UHC and Children’s Hospital Association. In addition, Novation also honored an overall supplier of the year with its second annual Mark McKenna award. Mark McKenna served as the president and CEO of Novation from 1999 through 2006. He passed away in October of 2011 after a lengthy battle with cancer. By honoring the overall supplier of 2012 who demonstrated outstanding service, this award continues McKenna’s legacy of putting hospitals and [...]

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UPS Laser-Focused on Healthcare Supply Chain –Investors Already Seeing the Pay Off

In case you haven’t heard, UPS is making it crystal clear that it intends to dominate in the healthcare marketplace. It’s a $50 billion global market and when you consider the down turn in traditional business demand for overnight shipping services, both UPS and FedEx have set their sights on a marketplace –the medical cargo marketplace—that is projected to grow at a rate of 20% annually. “Both companies have more than doubled their dedicated health-care storage and handling space in the past five years to take advantage of a business with potential operating margins of 15 percent or higher, dwarfing [...]

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New OEM Surgical Imaging Platform Promises To Revolutionize Endoscopic Device Market

Sanovas Inc., a life science technology company specializing in the development and commercialization of micro-invasive diagnostics, devices and drug delivery technologies, announced today the launch of MicroCam™, a new OEM “Plug & Play” micro imaging platform for endoscopic device applications. The technology features proprietary software, electronics, sensors and optics that can provide autonomous imaging capability to most any surgical instrument. Sanovas will offer its imaging technology for integration with medical device makers’ existing portfolios; enabling them to improve their products clinical capabilities, enhance their product offerings and increase their competitive advantage. The system was developed to evolve and, eventually displace large, cumbersome [...]

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Can Unique Device Identification Improve the Patient Experience?

Healthcare Matters would like to welcome the following guest post from Rob Leibrandt. Rob is the Senior Market Manager at Camcode, makers of UDI Labels for Medical Equipment. Unique Device Identification (UDI) is critically important in the healthcare system. In July 2012, the U.S. Food and Drug Administration (FDA) proposed a rule (http://www.regulations.gov/#!documentDetail;D=FDA-2011-N-0090-0001) that would phase in, by device classes, requirements for medical devices to carry a unique device identifier. The benefits to implementing such a requirement include more accurate reporting and tracking of adverse events, more rapid identification of problems with specific products, better control over product recalls and improved patient [...]

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