Tag - Stj

Small caps have plunged this afternoon, as recession fears have gripped stocks. Already concerned about still frozen credit piping, a slew of lackluster economic data and a sobering speech by Fed Chairman Ben Bernanki only served to push the market lower. At 2:36 p.m. ET, the Russell 2000 (NYSE:IWM) was down 34.81, or 6.28%, to 519.99.

A ghastly retail sales report, hit equity markets hard this morning, causing traders to keep their fingers on the sell button. September retail sales plunged 1.2%, which was nearly double the forecast for a slide of 0.6%. This marked the largest one-month decline since August 2005. Even worse, this was the third consecutive month retail sales have fallen, which hasn’t happened in more than 17 years. With two-thirds of the U.S. economy driven by consumer spending, the plunge in retail sales signals to the reality of a consumer led recession.

Adding to the grim economic picture, factory activity in New York slumped in October, with the NY Manufacturing Survey down 24.6% to the lowest reading in some seven years.

Also, on the economic docket today, the producer price index, a measure of wholesale inflation, wasn’t nearly as dismal. The headline figure for PPI met the forecast at minus 0.4%. “Although the core component is a little worrisome, lower commodity prices and the firmer tone the USD is taking should restrain costs in the year ahead,” BMO Capital Markets economist, Jennifer Lee wrote today.

Ahead of the opening this morning, the MBA Mortgage Application Survey rose 5.1% as mortgage rates slipped; however, purchase activity remained near seven-year lows. ...

Small-cap stocks took a dive on the opening, tugged down by worries about the economy, dreadful retail sales results and ongoing concerns about clogged credit markets. At 9:53 a.m. ET, the Russell 2000 (NYSE:IWM) was down 16.49, or 2.93% at 538.39.

The stock market was already limping toward a lower opening, but the 8:30 a.m. ET release of retail sales sparked an extension of pre-market losses on futures and put a decidedly sour tone on the morning’s action. September retail sales came in at minus 1.2%, which was well below the forecast for a slide of 0.6%. This marked the largest one-month decline since August 2005, and more importantly, retail sales fell for three consecutive months, something which has not happened in more than 17 years. With two-thirds of the U.S. economy driven by spending, the slide in retail sales is an ominous sign that consumers are strapped for cash, especially with the unemployment rate on the rise.

At the same time that retail sales data came out, the market also got numbers on wholesale inflation via the PPI report. The headline figure for PPI met the forecast at minus 0.4% and clearly was upstaged by the sobering retail sales data. If you’re into obscure overseas data, the Baltic Exchange’s dry sea freight index tumbled to a 5 ½-year low overnight spurred by worries about a global recession and a deep pullback in demand for raw materials from China.

Back on the home front, factory activity in New York slumped in October, with the NY Manufacturing Survey down 24.6% to the lowest reading in some seven years, adding to the bleak tone from the retail sales figure. Earlier this morning ahead of the opening, the MBA Mortgage Application Survey rose 5.1% as mortgage rates dipped, but the purchase activity was still hovering near seven-year lows. With the consumer pinched right now by employment worries and fretting about the collapse in the stock market, it’s unlikely that the housing market is ready to explode out of . . .

It’s not much fun when you offer to give your heart to the apple of your eye and the transaction is declined. Oh, it’s painful, but usually nothing a long bubble bath or a series of cold, fermented beverages can’t wash away.

However, it’s a true matter of life and death when a transplant recipient’s body rejects actual donated heart tissue.

That’s why doctors and investors alike are excited by the launch of a new technique developed by Kennesaw, Ga.-based CryoLife, Inc. (NYSE:CRY) called SynerGraft that’s expected to significantly reduce transplanted heart valve rejection, not to mention boost revenues along the way.

This is big news for the $256 million market cap developer of biomaterials and surgical implant devices that knows a thing or two about rejection itself (more on that shortly).

Among its enviable arsenal of products, CryoLife offers: an increasingly profitable surgical adhesive called BioGlue, which alone generates around 45% of total revenues; a wound sealer called BioFoam, currently being modified for battlefield applications with military R&D funding; transplantable porcine heart valves; and vascular grafts of bovine tissue.

Besides these products, the company is also a well-known leader in the cryo-preservation and distribution of donated cardiovascular and vascular tissue for transplant. CryoLife was hit hard in 2002, though, when it was ordered by the U.S. Food and Drug Administration to recall and halt the production and sale of non-valved cardiac vascular and orthopedic tissue after reports of infections and injuries resulting from implanted tissues surfaced. The order prompted huge sell-offs of the stock.

Then, heartbreakingly, after just getting its circulation back with improved quality controls, third-party accreditation and regained FDA approval, CryoLife once again . . .

Medical device maker Kensey Nash Corporation (Nasdaq:KNSY) had a rough go of it last year, what with a product recall, disgruntled investors and a business exit. What a difference a year makes: Kensey is now posting double-digit sales and earnings gains, perhaps at least somewhat consoling its ornery shareholders.

Kensey operates two businesses. Its core unit of biomaterial products — used in orthopedics (particularly sports medicine and spine), cardiology, drug delivery, oral care, general surgery and wound care — keeps investors satisfied. Biomaterials treat, augment or replace tissue and organs; they are used in a variety of resorbable or permanent implants.

Angio-Seal, a vascular closure device now manufactured and sold by St. Jude Medical Inc. (NYSE:STJ) was the Exton, Penn.-based company’s first biomaterial success. Since 2001, the market share of Angio-Seal has more than doubled, to 65% from 31%, with nearest competitor Abbot Laboratories (NYSE:ABT) now at 30%, down from 43% in 2001. 

Few have complaints with Kensey’s biomaterial business. After all, net sales of biomaterials increased 15% to $11.5 million in the second quarter through December, led by a 67% gain in orthopedic product sales to $7.2 million. Sales of spine products increased 140%.

Kensey’s endovascular business is what annoys investors, namely Ramius Capital Group, the company’s largest shareholder. The institutional investment fund started amassing shares of Kensey last summer, after Kensey reported a disappointing quarter, a recall of an embolic protection platform and a more general miscalculation of market demand for its protectors against traveling embolisms. Kensey decided in July to halt its embolic activities and refocus on biomaterials and endovascular devices, which are used in a variety of medical procedures.   

A maddening series of events, to be sure. So Ramius went activist and, by Dec. 31, owned just over 20% of shares. Ramius wants Kensey to refocus on its biomaterials business, and reduce spending and management effort on endovascular … or just get rid of it, among other ideas. Last fall, Ramius placed two of its own on . . .

SurModics Inc. (Nasdaq: SRDX) said late Thursday it has inked an expanded technology corporate agreement with St. Jude Medical Inc. (NYSE: STJ).

The Eden Prairie, Minn.-based company’s shares were up $0.27, or 0.7%, to $37.40 in after-hours trading on the news. Nearly 400,000 shares had changed hands by 5 p.m. ET – more than double the three-month average volume of 159,921 shares.

SurModics and St. Jude’s plan to work together to commercialize new products being developed in St. Jude’s cardiovascular and cardiac rhythm management divisions.