divendres, 29 d’abril del 2016

New implant set to join fight against U.S. painkiller epidemic

generic-pills-money-1x1(Reuters) – Two companies are on the cusp of taking a new treatment for opioid addiction to the U.S. market at a time when lawmakers are seeking ways to arrest an epidemic of heroin and painkiller abuse that kills 78 Americans every day.

Titan Pharmaceuticals Inc and privately owned Braeburn Pharmaceuticals have together developed a matchstick-sized implant that analysts expect will be approved next month, despite mixed reviews.

Implanted into the arm, the treatment is designed to be less vulnerable to abuse or illicit resale than the oral drugs that are currently used to treat opioid addiction.

The market for the implant could also be much bigger than first envisaged should a bill gaining bipartisan support on Capitol Hill become law. The bill aims to raise limits on the number of addicts that an individual doctor can treat.

Drug overdoses have overtaken motor vehicle crashes and firearms as the leading cause of injury-related deaths in the United States, the U.S. Drug Enforcement Administration says.

Of the estimated 2.2 million Americans who need treatment for abuse of heroin or prescription painkillers, fewer than half are receiving help, according to the U.S. Centers for Human and Health Services (HHS).

This has become an issue in the U.S. presidential campaign, and experts say there is a strong appetite for updated legislation. President Barack Obama is already pushing for $1.1 billion in new funding to expand treatment.

Two drugs are predominantly used to treat opioid addiction: methadone, which is dispensed only in government-endorsed clinics, and the less-addictive buprenorphine, which exists as a pill or strip of film.

The implant, known as Probuphine, offers an alternative by administering buprenorphine for up to six months after users have first been stabilized on the oral form of the drug.

It was developed by Braeburn, owned by New York City-based venture capital firm Apple Tree Partners, and Titan, a San Francisco-based developer of proprietary therapeutics.

“This epidemic isn’t going away,” Braeburn Chief Executive Behshad Sheldon said in an interview. “No matter who is in the White House or Congress, there is going to be a continual push to come up with new and innovative solutions.”

Staff at the U.S. Food and Drug Administration have raised reservations about possible complications from the insertion and removal of the 26mm (1-inch) long implant. Trial data has also shown that some users still need oral buprenorphine.

However, an independent panel of experts to the FDA has voted largely in favor of the treatment. Given the size of the epidemic, analysts say they expect FDA approval by May 27.

Other companies could also enter the market.

Indivior Plc, spun off from British consumer goods company Reckitt Benckiser Group Plc, has a buprenorphine injection in a late-stage study.

Raleigh, North Carolina-based BioDelivery Sciences International Inc, which already sells buprenorphine film, is also working on an injectable.

WAITING LISTS

Despite recent guidelines to prescribe fewer opioids for pain relief, the U.S. market is expected to grow to $18 billion by 2021 from $11 billion in 2014, according to GBI Research.

Yet fewer than 30,000 of the country’s 800,000 or so physicians are eligible to prescribe buprenorphine for addiction, according to the National Alliance of Advocates for Buprenorphine Treatment.

Under current law, a doctor can treat only 30 addicts within a year of obtaining a waiver, rising to a maximum 100 after procurement of a second waiver.

This is done to minimize the risk of illicit redistribution, as well to ensure an adequate level of care for each patient. But opponents argue that it has left the healthcare system unable to cope with the rising number of addicts.

“Even at 100, all of us that are active in the field still have a waiting list,” said Dr. Richard Soper, chief medical officer of the Nashville-based Center for Behavioral Wellness.

A bill called The Recovery Enhancement for Addiction Treatment (TREAT) Act aims to change this. It includes a provision to raise the patient cap to 100 in the first year and 500 thereafter.

It would also exempt from the cap any treatment directly administered by a physician – such as an implant or injection.

Backed by Republican Senator Rand Paul and Democratic Senator Edward Markey, the bill won the unanimous backing of the U.S. Senate Health, Education, Labor and Pensions Committee on March 16. Since then, Titan’s shares have risen more than 70 percent.

To be sure, the bill’s passage is far from assured.

Should it falter, a plan B exists in the form of a proposal by the Centers for Health and Human Services to raise the patient limit to 200, which would not require congressional approval. (http://1.usa.gov/22KJI0S)

However, the cap would still begin at 30 and would rise to 200 only in stages – not enough to make a significant difference in the eyes of drug developers.

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Cardiac Insight raises $2.5m to support CardeaScreen

Cardiac InsightCardiac Insight said today it closed a $2.5 million Series C funding round to support its CardeaScreen device and to finalize the development of a proprietary wearable sensor technology.

The CardeaScreen is a handheld 12-lead electrocardiogram device and software that Cardiac Insight says “provides a major breakthrough” in improving quality and reliability of ECGs to identify issues associated with sudden cardiac arrest in young athletes.

“We are excited to have completed this funding and move forward with our near term FDA submission for our 7-day ECG Monitor and increasing the sales of our CardeaScreen 12-lead device. Cardiac Insights’ shareholders and our partners look forward to both products serving patients by the end of 2016,” CEO Brad Harlow said in prepared remarks.

Money in the round came from 30 unnamed sources and the offering includes “warrants, the monetary consideration for which may not be paid until the exercise of said warrants,” according to an SEC filing.

The Kirkland, Wash.-based company said it is also developing single-use, patient centric technologies to “simplify and streamline complex diagnostic exams centered around cardiology and related practices.”

Last October, Cardiac Insight said it closed its purchase of cardiovascular diagnostic developer Cardea Associates for an undisclosed amount, picking up the CardeaScreen device with the buy.

Cardiac Insight said it is developing wearable ECG sensing technology to identify atrial fibrillation and other conditions. The company aims to produce sensor technology to “streamline the AF detection process” while reducing equipment costs.

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Neovasc misses the Street with Q1 earnings, analysts remain positive

Neovasc squeaks by Q2, positive on Tiara trialNeovasc (NSDQ:NVCN) today released 1st quarter 2016 earnings that fell short of the Street’s expectations in revenue and losses per share, though analysts remained optimistic about Tiara trial enrollment numbers.

The company reported losses of $7.6 million, or 16¢ per share, on sales of $2 million for the 3 months ended March 31.

That amounts to a slim 1.1% gain in losses on the bottom end while sales shrunk 12.9% compared with the same period last year, according to Neovasc’s SEC filing.

Losses per share were off Wall Street analysts expectations by 4¢ and revenue was off by a significant $1.3 million, with analysts expecting Neovasc to bring in $3.3 million.

But there’s still reason to be optimistic about Neovasc’s future, according to Leerink Partner analyst Danielle Antalffy, as the company grew the number of patients enrolled in the trial of its Tiara implant by 3 since the last quarter.

Neovasc also has a new valve size, 40 mm, coming for the valve currently in clinical trials, which Antalffy said should accelerate enrollment in the study. Antalffy said the company stated a rate of 3 implants a month as ‘likely reasonable’, and hopes to complete enrollment by the end of the year.

The company is also working to initiate a CE Mark study for approval in the European Union, with an early 2016 start and late 2017 or early 2018 approval possible, Antalffy said.

“NVCN also noted that conversations with European regulators are ongoing regarding initiation of a CE Mark trial, which the company expecting to begin by early-2017. As a reminder we peg the global transcatheter mitral valve replacement market opportunity at approximately $9B, with likely NVCN potentially one of the first, if not the first, to market,” Antalffy wrote in a letter to investors.

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Medtronic, Masimo split win in PTAB decision

Medtronic, MasimoMasimo (NSDQ:MASI) said this week the U.S. Patent and Trademark Office’s Patent Trial and Appeal Board delivered split a decision related to pulse oximetry technology patents owned by Masimo that were challenged last year by Medtronic (NYSE:MDT).

The PTAB ruled on petitions to review 2 different patents owned by Masimo related to signal processing apparati, granting Medtronic’s request to review certain claims on one and denying other claims on it and a second patent.

The PTAB denied Medtronic’s request to review challenged claims on Masimo’s ‘034 patent, but approved the company’s petition for review of other claims on the similarly named ‘393 patent, Masimo said.

Masimo said it planned to “defend the claims of the ‘393 Patent for which review was granted,” according to an SEC filing. The patent is set to expire in September this year, while the ‘034 patent will expire in October 2018.

Medtronic challenged Masimo patents last October, filing inter partes reviews with the U.S. Patent & Trademark Office.

The petition alleged that claims in 1 of the patents, covering “Signal processing apparatus,” are obvious due to prior art that the patent office “did not fully consider during prosecution as the prior art did not form the basis of a rejection.” Medtronic alleges obviousness and anticipation for the 2nd patent, according to documents filed with the PTO’s Patent Trial & Appeal Board.

Medtronic acquired the patents last year when it bought Covidien, whose Nellcor subsidiary (itself a legacy from corporate predecessor Tyco Healthcare) lost a series of legal battles with Masimo over the same patents. In January 2006 Covidien agreed to pay $330 million plus unspecified royalties to settle the beef, after a federal appeals court upheld a $140 million anti-trust judgment against Nellcor.

Masimo said Medtronic threatened to halt royalties “only when it feels it has reached an appropriate point in the process” and vowed to fight the inter partes review petitions and any eventual patentability proceedings at the PTAB.

Medtronic is barred from from challenging 1 of the patents because of its prior win over Covidien, Masimo claimed.

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House bill would speed CMS reimbursement for breakthrough devices

Capitol HillA new bill proposed by the U.S. House of Representatives looks to speed up the timeframes for Medicare reimbursement coverage for breakthrough medical devices that have won FDA approval .

The bill, titled “To amend titles XVIII and XIX of the Social Security Act to ensure prompt coverage of breakthrough devices under the Medicare and Medicaid programs, and for other purposes,” would give newly FDA-cleared devices automatic 3-year Medicare coverage under the New Technologies Add-on Payment program, according to bill co-sponsor Gus Bilirakis (R-FL).

The bill was introduced by Congressman Dr. Charles Boustany, Jr. (R-LA) and co-sponsored by Bilirakis, Richard Neal (D-MA) and Tony Cardenas (D-CA).

“This legislation will help the 600 medical device companies in our state working to develop innovative and effective medical devices, as well as the millions of seniors on Medicare. During a roundtable discussion in my district, I heard from these businesses and organizations on the barriers they face when developing new innovative technologies only to face non-coverage by the Centers for Medicare and Medicaid Services (CMS). This bill works to address these issues to help them bring important devices and technologies to the many patients who need them. We must continue to encourage innovation, not stifle it. This legislation will streamline the payment process for effective new devices and ultimately help improve and save lives,” Bilirakis said in prepared remarks.

After the guaranteed 3-years of automatic coverage, technologies would have to be re-evaulated by the Centers for Medicare and Medicaid Services for permanent approval, and would gain coverage by private insurers, according to a press release from Bilirakis.

“As a surgeon, I know all too well how vital it is for patients and their doctors to have the most current and effective technology available. From diagnosing a simple cold to the early detection of a potentially fatal disease, we rely on the continued advancements in medicine to keep us at our best health. Delays in Medicare coverage of FDA-approved technologies present unnecessary financial uncertainty that can cripple medical research and development companies who are not only ensuring medical advancement continues, but are also creating high-paying American jobs. We must cut the red tape of Washington to ensure our physicians have access to the best technology available for our American families,” co-sponsor Boustany said in a prepared statement.

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Abbott + St. Jude Medical: What does it mean for med tech innovators?

 

sn2-health-1x1

By Amy Siegel, S2N Health

We awoke yesterday to news of yet another med tech mega-merger, with acquisitive Abbott ponying up $25B for St. Jude Medical, even before the ink is dry on Abbott’s $6B takeover of Alere (though that deal may be on the rocks). Fair to say that consolidation in med tech is firmly a trend, with this deal following a string of other big fat $1B+ global weddings:

Deal Area Deal Value Year
Medtronic+Covidien Various $50B 2015
Abbott+St. Jude Cardiovascular $25B 2016
Zimmer+Biomet Orthopedics $13B 2014
BD+CareFusion Patient Care $12.2B 2014
St. Jude+Thoratec Cardiovascular $3.4B 2015
Wright-Tournier Orthopedics $3.3B 2014
Stryker+Sage Products Patient Care $2.8B 2016
Hill-Rom+Welch Allyn Patient Care $2.0B 2015
Cardinal+Cordis (JNJ) Cardiovascular $1.9B 2015
Smith & Nephew+Arthrocare Orthopedics $1.7B 2014
Boston Scientific+AMS Urology $1.6B 2015

The rationale behind these mergers is well understood; med tech is under intense price pressure from health system all over the world, and increased scale helps both the sides of these companies’ ledgers by lowering operating costs and enhancing negotiation leverage with customers.  Then of course there are other incentives like tax inversions, though that window may be closing (see failed “Pfizergan” deal). 

In the press releases announcing these deals, there is often lip service paid to the positive impact on innovation, the story being that greater scale and efficiencies equal more money to spend on internally and externally developed new technologies. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies,” says Abbott CEO Miles White.  Omar Ishrak, Medtronic’s CEO, made a similar statement back in 2014: “Medtronic has consistently been the leading innovator and investor in U.S. medtech, and this combination will allow us to accelerate those investments.”

It is too soon to evaluate Medtronic’s follow-through on this promise; they have made a few notable early stage investments since the Covidien acquisition including Lazarus EffectTwelve and Medina Medical. The legitimate concern of emerging med tech executives, though, is the loss of one more potential acquirer out there, which lessens the chance of an earlier and/or richer competitive deal, and therefore makes the fundraising road even rougher than it already is.  In addition, these big acquisitions tend to distract organizations and slow down active discussions for several months or longer as a result of personnel changes, shifting business development strategies, and general chaos. 

While a good number of the large M&A deals have been concentrated in the cardiovascular and orthopedic segments, which have been plagued by large, heavily mature product categories, we should expect to see more consolidation generally given the forces at work in the healthcare market.  Looking across the industry, the number of now seemingly small-ish $1B+ revenue companies is striking (see below chart). In an “eat or be eaten” world, these smaller market players may be hungry for deals to enhance their own valuations; emerging med tech companies should consider casting a wider net in the search for strategic partners.  Ultimately, the established medical device companies cannot merge and synergize their way to top line growth, and will continue to look externally for innovation. 

*Most recent annual filings

Sources: company financial filings, MDDI Top 100 Medical Device Companies of 2015

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MassDevice.com +5 | The top 5 medtech stories for April 29, 2016

plus5-node

Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.

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5. Hill-Rom slides on Q2 revenues miss

MassDevice.com news

Hill-Rom shares took a hit today after the company reported that fiscal 2nd-quarter sales missed expectations despite the contribution of new acquisition Welch Allyn.

Chicago-based Hill-Rom said profits were $22.3 million, or 33¢ per share, on sales of $632.6 million for the 3 months ended March 31, for a -14.6% bottom-line slide on sales growth of 33.2%. Adjusted to exclude 1-time items, earnings per share were 71¢, a penny ahead of expectations on Wall Street. Read more


4. Pavmed IPO grosses $5.3m

MassDevice.com news

Pavmed said today that its initial public offering grossed $5.3 million, after extending the flotation last month for an extra 45 days.

Pavmed is developing devices in 5 areas, according to its IPO registration: The PortIO long-term implantable vascular access device; the Caldus line disposable tissue ablation devices, including renal denervation for hypertension; the CarpX percutaneous device to treat carpal tunnel syndrome; the NextCath self-anchoring short-term catheter; and the NextFlo disposable infusion pump. Read more


3. Merit Medical looks to capitalize on rival Cook’s recall

MassDevice.com news

Merit Medical chief Fred Lampropoulos said his company is ready to take advantage of the worldwide recall of rival Cook Medical‘s central catheter sets.

The FDA in March slapped the Cook recall with a Class I label, denoting the risk of serious injury or death. It covers Cook’s single lumen central venous catheter sets and trays, single lumen pressure monitoring sets and trays, femoral artery pressure monitoring catheter sets and trays and radial artery pressure monitoring catheter sets and trays. Read more


2. Stryker pays $52m for Stanmore Implants

MassDevice.com news

Stryker said today that paid $52 million (£35.6 million) in cash for SIW Holdings subsidiary Stanmore Implants, which makes medical devices for limb salvage in patients with orthopedic cancers.

“The acquisition of Stanmore Implants provides Stryker with differentiated technologies designed to provide the most effective solutions for orthopedic oncology surgeons. This addition underscores Stryker’s commitment to our core joint replacement business and expands our presence in the global orthopedic oncology market,” Stryker Orthopaedics president David Floyd said in prepared remarks. Read more


1. Alere rejected Abbott’s $50m offer to spike merger

MassDevice.com news

Alere said yesterday that it rejected an offer from Abbott to pay up to $50 million to spike their pending, $5.8 billion merger, even as news broke of Abbott’s $25 billion bid for St. Jude Medical.

The Chicago-area healthcare giant’s nearly $6 billion acquisition of Alere, the Waltham, Mass.-based diagnostics firm drew scrutiny after Abbott CEO Miles White appeared to throw some shade on it last week; the U.S. Justice Dept. has opened a probe into Alere’s sales practices and shareholders have sued to block the deal. Read more

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Hill-Rom slides on Q2 revenues miss

Hill-Rom HoldingsHill-Rom (NYSE:HRC) shares took a hit today after the company reported that fiscal 2nd-quarter sales missed expectations despite the contribution of new acquisition Welch Allyn.

Chicago-based Hill-Rom said profits were $22.3 million, or 33¢ per share, on sales of $632.6 million for the 3 months ended March 31, for a -14.6% bottom-line slide on sales growth of 33.2%. Adjusted to exclude 1-time items, earnings per share were 71¢, a penny ahead of expectations on Wall Street.

But analysts there were looking for sales of $651.8 million, and although Hill-Rom hiked the low end of its earnings outlook, it cut its sales guidance to $2.64 billion to $2.67 billion from $2.66 billion to $2.70 billion. Investors reacted to the miss by pushing HRC shares down -8.5% to $48.57 apiece in early-afternoon activity today.

“Driven by strong growth in North America and Welch Allyn, our pro forma constant currency revenue growth for the 1st half of the year was 3.5%,” president & CEO John Greisch said in prepared remarks. “In addition, our disciplined focus on operational execution drove strong operating margin improvement and enabled us to maintain our full-year adjusted earnings outlook despite weaker international revenues.”

Hill-Rom boosted the lower end of its earnings guidance, saying it now expects to post adjusted EPS of $3.26 to $3.30, up from prior guidance of $3.24 to $3.30. Third quarter adjusted EPS are pegged at 75¢ to 77¢ on sales of between $640 million and $650 million.

Hill-Rom paid $2.05 billion for Welch Allyn in September 2015.

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Merit Medical looks to capitalize on rival Cook recall

Merit MedicalMerit Medical (NSDQ:MMSI) chief Fred Lampropoulos said his company is ready to take advantage of the worldwide recall of rival Cook Medical‘s central catheter sets.

The FDA in March slapped the Cook recall with a Class I label, denoting the risk of serious injury or death. It covers Cook’s single lumen central venous catheter sets and trays, single lumen pressure monitoring sets and trays, femoral artery pressure monitoring catheter sets and trays and radial artery pressure monitoring catheter sets and trays.

During a conference call with analysts yesterday discussing Merit’s 1st-quarter results, Lampropoulos sounded a note of regret in referring to the recall, calling Cook “a noble competitor,” but stressed that Merit stands ready to leap into the breach.

“In the 35 years I have been in the industry, I have never seen anything like this. It’s so unfortunate for a great company,” he said, according to Seeking Alpha. “It’s going to be, I think, a long time. Once you start pulling product you have to get it, of course, re-qualified. I do not want to speak on behalf of Cook, nor would be appropriate, but it’s going to be long and it’s going to be deep and it’s going to create a great opportunity for Merit.”

Lampropoulos, the founder, chairman and CEO at South Jordan, Utah-based Merit, said his company will have more comment on the recall’s impact after the 2nd quarter.

Merit hit the mark with its 1st-quarter earnings, meeting expectations on Wall Street despite a nearly -16% profit slide compared with Q1 2015. The company posted profits of $4.4 million, or 10¢ per share, on sales of $138.1 million for the 3 months ended March 31, for a top-line gain of 6.6%. Adjusted to exclude 1-time items, earnings per share were 19¢ per share, spot on target with the consensus on The Street.

“The first 3 months of 2016 were very eventful and we believe will have a positive impact on Merit for many years to come,” Lampropoulos said in prepared remarks. “We closed a transaction in early February with CryoLife to acquire the Hero graft product line.

“Our new facility in Mexico reached the point of break-even operations in March,” Lampropoulos said. “A few new product lines were transferred there in early April, which we believe will continue to support our plan of gross margin improvement.”

“Our new direct sales operation in Australia is performing ahead of schedule, and our new direct operation in Canada commenced April 1,” he said.

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Stryker pays $52m for Stanmore Implants

Stryker acquires Stanmore ImplantsStryker (NYSE:SYK) said today that paid $52 million (£35.6 million) in cash for SIW Holdings subsidiary Stanmore Implants, which makes medical devices for limb salvage in patients with orthopedic cancers.

“The acquisition of Stanmore Implants provides Stryker with differentiated technologies designed to provide the most effective solutions for orthopedic oncology surgeons. This addition underscores Stryker’s commitment to our core joint replacement business and expands our presence in the global orthopedic oncology market,” Stryker Orthopaedics president David Floyd said in prepared remarks.

“The combination of Stryker’s commitment to orthopedic oncology and Stanmore’s novel orthopedic oncology solutions provides a unique opportunity to impact a broader group of patients globally,” added Stanmore Implants CEO Michael Mainelli.

The 2 companies share a history thanks to Stryker’s buyout of Mako Surgical; in 2013 Stanmore agreed to exit robotics entirely in order to settle patent infringement complaints filed by Mako.

Elstree, U.K.-based Stanmore drew a U.S. import ban from the FDA last year due to problems flagged in a warning letter from the federal safety watchdog.

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A citizen-scientist’s quest for a smart pulse oximeter

160428-vector-1x1When Sarah and Jon Morris’ twins were born nine weeks early, they embarked on a journey largely dictated by their children’s medical needs. While son Drew was thriving, daughter Emma was severely compromised and was transferred to Boston Children’s Hospital’s Neonatal Intensive Care Unit (NICU). “We felt powerless,” remembers Jon. “Every time we thought we had made progress, we had a setback. It’s always two steps forward, one step back in the NICU. That backwards step always hit the hardest.”

Vector-green logo

After 296 days at Boston Children’s, Emma went home tethered to breathing and feeding tubes. The Morrises had a pulse oximeter at home to regularly test Emma’s blood oxygen level.

There were frustrating limitations to Emma’s oximeter: Numbers would fluctuate, conditions would change all the time, and if Emma took a turn for the worse, there was no way to formally recall her pulmonary performance. The Morrises were unable to share information in time to help clinicians make decisions. To top it off, the oximeter was yet another line attached to Emma as she slept, adding to her discomfort and making it difficult for Jon and Sarah to safely leave her bedside.

Fast-forward six years to 2014. With the acute phase of Emma’s medical journey thankfully behind her, Jon signs up for Hacking Pediatrics — an event sponsored by Boston Children’s that gives parents, clinicians and entrepreneurs the opportunity to collaborate, “hack” and find innovative solutions to particular pain points in health care.

“I’m one of those people that says, ‘I can either be part of the problem, or part of the solution,’” says Jon. “I knew there had to be a better, smarter way to monitor oxygen.”

Read the full post on VectorFrom NICU dad to citizen scientist: Creating a smart pulse oximeter

The opinions expressed in this blog post are the author’s only and do not necessarily reflect those of MassDevice.com or its employees.

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Alere rejected Abbott’s $50m offer to spike merger

Abbott acquires AlereAlere (NYSE:ALR) said yesterday that it rejected an offer from Abbott (NYSE:ABT) to pay up to $50 million to spike their pending, $5.8 billion merger, even as news broke of Abbott’s $25 billion bid for St. Jude Medical (NYSE:STJ).

The Chicago-area healthcare giant’s nearly $6 billion acquisition of Alere, the Waltham, Mass.-based diagnostics firm drew scrutiny after Abbott CEO Miles White appeared to throw some shade on it last week; the U.S. Justice Dept. has opened a probe into Alere’s sales practices and shareholders have sued to block the deal.

Yesterday Alere said its board “promptly rejected” Abbott’s offer to pay $30 million to $50 million to kill their merger, adding that “it is completely confident that there is no basis for a termination of the merger agreement and that the merger will be consummated in accordance with its terms.”

“In recent discussions between the parties, Abbott informed Alere that it has serious concerns about, among other things, the accuracy of various representations, warranties and covenants made by Alere in the parties’ merger agreement,” the company said. “In these recent discussions, Abbott affirmed its commitment to abide by its obligations under the merger agreement.”

St. Jude deal fuels split rumors for Abbott

Meanwhile, news of the St. Jude Medical buyout is spurring talk of a possible carve-out for Abbott’s medical device business; the company executed a similar maneuver 3 years ago when it spun out its branded pharmaceuticals business as AbbVie.

BMO Capital Markets analyst Joanne Wuensch said Abbott is likely to repeat the tactic after the St. Jude deal.

“Historically, when companies split, they perform quite well,” Wuensch said. “We remember when Baxter bought Gambro that was sort of signal that it would eventually split into 2.” Baxter, which paid $3.9 billion for the Swedish dialysis firm, later carved out its pharma division as Baxalta.

Gabelli Funds portfolio manager Jeff Jonas said White is likely to wait 2 or 3 years before engineering a spinout as the company integrates St. Jude and Alere and pays down its debt.

“But he’s certainly kept that option open now,” Jonas said. “I think he’d sell off the medical devices. Then you’d have nutritionals, generic drugs and diagnostics, which may or may not go with medical devices.”

For his part, White was cautious when asked on a conference call with analysts if a spin-off of the combined cardiovascular businesses is in the offing.

“I think right now you should be anticipating the integration of St. Jude and the performance of the company overall going forward as a healthy growth company in the healthcare space,” he said.

White defended the St. Jude deal, saying it would add 21¢ to adjusted earnings per share in 2017 and 29¢ the next year. Asked about the timing of the deal, after Abbott shot down rumors that the companies were in talks last summer, White said the talks did not begin until late 2015.

“I don’t know that anything has changed,” he said. “I’ve been open about being interested in M&A.”

Material from Reuters was used in this report.

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dijous, 28 d’abril del 2016

Greatbatch Q1 meets the street on rev, misses EPS

Greatbatch MedicalGreatbatch (NYSE:GB) today released 1st quarter earnings  mostly on target with the Street’s expectations while reiterating its full year revenue guidance.

The Frisco, Texas based company reported losses of $12.7 million, or 41¢ per share, on sales of $332.2 million for the 3 months ended April 1. That amounts to a 258% turnaround from profits into losses while sales doubled compared with the same period in 2015.

Adjusted to exclude 1-time items, earnings per share were 42¢ per share. That’s 10¢ lower than analysts on Wall Street were looking for, expecting Greatbatch to bring in 52¢ per share.

The report came out after market closing and the company’s shares haven’t moved in after-hours trading, closing down 5.8% at $36.57 before the earnings were released.

“The 1st quarter results were in-line with our expectations. We made significant progress on the integration of Lake Region Medical, with the initial focus on combining our infrastructures into a single cohesive company. The next phase of the integration will focus on supply chain and global footprint optimization. We will continue to execute on our cost savings commitments and delivering improved organic growth. With the added vascular, orthopedic and advanced surgical products & capabilities, we are well positioned to leverage this comprehensive product portfolio to deliver innovative, cost-effective solutions for our customers and long-term returns to our shareholders,” CEO Thomas Hook said in prepared remarks.

Greatbatch released guidance for the coming quarter, expecting between $355 and $380 million, and full-year revenue at between $1.43 and $1.48 billion. Earnings per share for the year are expected to be between $3 and $3.35, the company said.

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Insulet shares lift on Street-beating Q1

InsuletInsulet (NSDQ:PODD) saw shares rise slightly in after-hours training after posting a Street-beating 1st quarter earnings report, despite seeing net losses increase from 2015.

The diabetes-focused medtech company reported losses of $12.4 million, or 19¢ per share, on sales of $81.2 million for the 3 months ended March 31.

That amounts to a 5.5% increase in losses from last year as sales grew 68.7% compared with 2015.

Losses per share were right on target with what analysts on Wall Street were looking for at 19¢, and revenue topped expectations by over $2 million, with analysts hoping for $79.2 million.

“We continue our strong momentum across our product lines as we successfully execute our key commercial and operational initiatives in diabetes and drug delivery. We achieved 1st quarter revenue growth which exceeded our expectations and we remain focused on our pathway to profitability. We continue to make progress building awareness of our OmniPod and are on track to drive further conversion of the significant market opportunity before us. We are building on our strong foundation and executing our winning strategy to deliver long-term sustainable and profitable growth, while improving the quality of life of those living with diabetes,” CEO Patrick Sullivan said in a press release.

The company reaffirmed its guidance of $330 to $350 million, and released guidance for the next quarter, expecting to bring in $81 to $84 million.

In January, Insulet said it closed the $5 million sale of its Neighborhood Diabetes supplies business this month to mail-order medical supply company Liberty Medical. The company paid $63 million for Neighborhood Diabetes back in June 2011.

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Medtronic touts VenaSeal data

MedtronicMedtronic (NYSE:MDT) today released clinical data from a study of its VenaSeal closure system, claiming consistent long-term durability and improved quality of life in patients with venous reflux disease treated with the system

The VenaSeal system from the Fridley, Minn.-based medical giant uses a proprietary medical adhesive to close superficial veins in lower extremities in patients with symptomatic venous reflux, or varicose veins.

To administer the adhesive, an operating physician inserts a catheter through an access site in the leg and guides it, with ultrasound, into diseased veins to administer the VenaSeal adhesive. Along with manual compression, the physician closes the vein so blood is rerouted through other healthy veins in the leg, Medtronic said.

“As shown by our unmatched body of Level 1 evidence in the venous industry, Medtronic has demonstrated its deep-rooted commitment to providing clinically-proven and patient friendly treatment options for patients with chronic venous insufficiency. We’re enthusiastic about the unveiling of such strong datasets, and we look forward to continuing to build upon this clinical program,” endoVenous biz GM Sandra Lesenfants said in a press release.

The data comes from the VeClose pivotal clinical study and 2 subanalysis, as well as 3-year results from the eScope study, Medtronic said. The data was presented at the 2016 Charing Cross Symposium in London.

Data from the VeClose trial indicated long term non-inferiority at 2 years when compared to ClosureFast treatments, with a a 94.3% rate of complete closure of the GSV with the VenaSeal system compared to 94% with the ClosureFast.

A 1-year subanalysis from the VeClose trial also indicated a statistically significant improvement on the Venous Clinical Severity Score and Aberdeen Varicose Vein Questionnaire and a quality of life improvement across all ages, body mass index, gender and vein diameter size for patients treated with VenaSeal.

“This randomized trial demonstrates VenaSeal’s ability to provide a safe and effective treatment for patients with varicose veins. With excellent outcomes at 2 years, VenaSeal offers patients an alternative treatment to traditional therapies for varicose veins, allowing a rapid recovery with minimal downtime and diminished post-procedure bruising,” Dr. Kathleen Gibson said in prepared remarks.

A separate analysis of patients treated by physicians with no experience with the VenaSeal indicated that 19 out of 20 of the patients returned for follow ups, with complete GSV closure in 100% of those follow-up patients.

“Despite having no prior physician experience with VenaSeal, these data demonstrated remarkable ease-of-use and a limited learning curve for first-time-users as compared to experienced users,” VeClose principal investigator Dr. Nick Morrison said in a prepared statement.

In a 70-patient, 3-year study of the device, patients showed an 88.5% closure rate at 3 years.

Last year, Medtronic launched the VenaSeal closure system for treating varicose veins in the lower extremities. The device is the 1st and only non-tumescent, non-thermal and non-sclerosant procedure for treating varicose veins in the U.S., Medtronic said.

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MassDevice.com +5 | The top 5 medtech stories for April 28, 2016

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Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.

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5. Chinese mobile Internet firm Liaison Interactive puts $20m into Dehaier Medical

MassDevice.com news

Dehaier Medical Systems said today that a Chinese mobile Internet firm, Hangzhou Liaison Interactive Information Technology, took out a $20 million stake.

The $1.80-per-share deal is a 35% premium on Dehaier’s $1.33 closing price yesterday. It includes warrants for 1 million shares exercisable at $2.20 apiece and is expected to close by June 30, Dehaier said. The company said late last year that it was considering the Liaison Interactive deal. Read more


4. Teleflex’s Q1 profits surge, earnings outlook raised

MassDevice.com news

Teleflex shares ticked down today despite a 17¢ earnings beat, as investors likely interpreted the Wayne, Pa.-based company’s raised earnings outlook as too tepid for the circumstances.

Teleflex posted profits of $50.7 million, or $1.04 per share, on sales of $424.9 million for the 3 months ended March 27, representing a 32.2% bottom-line gain on a -1.1% sales decline. Read more


3. Zimmer Biomet logs beat-n-raise Q1

MassDevice.com news

Zimmer Biomet logged a beat-and-raise 1st quarter despite a -38.2% profit slide as sales surged 67.8% compared with Q1 2015.

The Warsaw, Ind.-based orthopedics giant posted profits of $105.9 million, or 52 per share, on sales of $1.90 billion for the 3 months ended March 31; adjusted to exclude 1-time items, earnings per share were $2 even, a full 7 ahead of the consensus expectation on Wall Street, where analysts were looking for revenues of $1.88 billion. Read more


2. Recent TAVR approvals prompt changes to Direct Flow’s Salus trial

MassDevice.com news

Direct Flow Medical said today that recent FDA approvals for transcatheter aortic valve replacements prompted it to make changes to the Salus trial of its own TAVR entry.

Salus, originally aimed at enrolling 1,262 patients, is now expected to enroll a little more than half that number, 648 subjects, the company said. Santa Rosa, Calif.-based Direct Flow is also adding best practices and comparisons to TAVRs that are already on the U.S. market, which include the Sapien line from market leader Edwards Lifesciences and the Medtronic CoreValve device. Read more


1. Abbott to pay $25B for St. Jude Medical

MassDevice.com news

Abbott said today that it offered to pay a 37% premium for St. Jude Medical in a $25 billion deal aimed at expanding its cardiac and neurological businesses.

Each unit in the $85-per-share deal consists of $46.75 in cash and 0.8708 ABT shares; at Abbott’s 5-day volume weighted average share price of $43.93 as of April 26, the buyout is worth about $25 billion. Read more

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Public Citizen Foundation sues FDA over advisory committee CVs

FDA logoThe Public Citizen Foundation yesterday sued to force the FDA to post unredacted copies of its advisory committee members’ resumes, arguing that the censorship violates federal freedom of information rules.

The FDA’s advsory panels are tasked with reviewing clinical trial data on safety and effectiveness to make recommendations to the agency on approving – or not – medical devices and drugs.

The lawsuit, filed in the U.S. District Court for the District of Columbia, claimed that the foundation wrote the FDA in early 2014 to ask that it stop redacting the curricula vitae for the members of its roughly 50 advisory boards. The FDA later that year declined to issue unredacted CVs, the lawsuit alleged.

“The FDA letter stated that FDA’s practice is to categorically redact certain information from advisory committee members’ CVs including, among other categories, information concerning nongovernment funded grants, pending clinical trials, pending publications, dates degrees were conferred, medical board and professional association certification numbers, names of graduate or doctoral students supervised, military service, and information related to hobbies and outside activities,” according to the complaint.

The FDA redacted 98% of the CVs for the 128 members of its Center for Devices & Radiological Health advisory panels; in fact, according to the lawsuit, only 1 panel’s CVs weren’t censored by the agency: the Science Advisory Board for the National Center for Toxicological Research.

“FDA’s practice of unlawfully redacting the CVs of advisory committee members posted on its website is ongoing. Nearly all CVs currently posted on FDA’s website contain improper redactions,” the lawsuit alleged, claiming that the FDA redacted 92% of the 150 resumes for the Center for Drug Evaluation & Research committees; 86% of the 57 CVs for the Center for Biologics Evaluation & Research panels; and all of those posted for the Tobacco Products scientific advisory panel, the Center for Radiation-Emitting Products committee and the Pediatric advisory committee.

The lawsuit asks the D.C. federal court to order the FDA to publish unredacted copies of the CVs on its website and seeks legal costs and fees.

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Pavmed IPO grosses $5.3m

PavmedPavmed said today that its initial public offering grossed $5.3 million, after extending the flotation last month for an extra 45 days.

Pavmed is developing devices in 5 areas, according to its IPO registration: The PortIO long-term implantable vascular access device; the Caldus line disposable tissue ablation devices, including renal denervation for hypertension; the CarpX percutaneous device to treat carpal tunnel syndrome; the NextCath self-anchoring short-term catheter; and the NextFlo disposable infusion pump.

The 1.06 million-share offering sold for $5 apiece, New York City-based Pavmed said; shares are slated to trade on the NASDAQ exchange under the “PAVM” symbol. Pavmed extended the IPO March 14 after a dramatic scaling back in January, announcing that it planned to float a reduced 1.2 million shares at $5 apiece – a far cry from the $23 million top end Pavmed listed when it registered the IPO last May.

The founders of Pavmed – Drs. Lishan Aklog and Brian deGuzman and Michael Glennon – were also behind Pavilion Medical Innovations, a medical device incubator built around a faster, low-cost development plan. Pavilion spun out Vortex Medicalacquired for $55 million in 2012 by AngioDynamics (NSDQ:ANGO), and Saphena Medical, which in March raised a $1.3 million round for its device to harvest veins for coronary artery bypass grafting.

Pavilion also created Kaleidoscope Medical, which is developing a reversible inferior vena cava filter, and Cruzar Medsystems and its Houdini peripheral chronic total occlusion device. All 4 companies raised just $1.5 million to $3.5 million and “rapidly advance their products,” according to Pavmed’s original filing last year. In the case of Vortex Medical, the AngioVac system won 510(k) clearance from the FDA 16 months after its founding. Saphena won 510(k) clearance for VenaPax in 18 months and has had it on the market since last October, according to the filing.

Aklog, deGuzman and Glennon are betting that their formula for commercializing single-product companies can be applied to a company making multiple devices, dramatically slashing the estimated $30 million and 5 years it typically takes to get to market.

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Chinese mobile Internet firm Liaison Interactive puts $20m into Dehaier Medical

Dehaier MedicalDehaier Medical Systems (NSDQ:DHRM) said today that a Chinese mobile Internet firm, Hangzhou Liaison Interactive Information Technology (SHE:002280), took out a $20 million stake.

The $1.80-per-share deal is a 35% premium on Dehaier’s $1.33 closing price yesterday. It includes warrants for 1 million shares exercisable at $2.20 apiece and is expected to close by June 30, Dehaier said. The company said late last year that it was considering the Liaison Interactive deal.

The Shenzhen-based company said in February that it plans to ditch its unprofitable medical device businesses so it can focus on its wearable sleep respiratory business, with a new subsidiary called Connection Wearable Health Technology focused on “wearable sleep respiratory and mobile health-related businesses.”

CEO Ping Chen said the deal with Liaison Interactive, which is developing a virtual-reality ‘smart’ terminal, allows the Internet company to expand its footprint in the medical sector’s smart hardware space.

“The Liaison Interactive investment dramatically improves our ability to expand our wearable medical device business and to launch other new smart wearable devices and mobile medical solutions over the next few years,” Chen said in prepared remarks. “The investment also helps optimize our overall strategies, increase our market penetration and strengthen our competitiveness in the medical wearable device segment.

“By leveraging Liaison Interactive’s extensive customer base in the Chinese mobile internet market, Dehaier anticipates growing its market share in China. It is the exact type of collaboration that we would anticipate from a strategic investor like Liaison Interactive, and we believe it will lead to a new revenue stream for us in the future,” he said.

Earlier this month, Dehaier’s shares got a boost from its preliminary numbers for 2015, despite massive losses incurred as it sheds unprofitable medical device businesses.

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Teleflex’s Q1 profits surge, earnings outlook raised

TeleflexTeleflex (NYSE:TFX) shares ticked down today despite a 17¢ earnings beat, as investors likely interpreted the Wayne, Pa.-based company’s raised earnings outlook as too tepid for the circumstances.

Teleflex posted profits of $50.7 million, or $1.04 per share, on sales of $424.9 million for the 3 months ended March 27, representing a 32.2% bottom-line gain on a -1.1% sales decline.

Adjusted to exclude 1-time items, earnings per share were $1.52, well ahead of Wall Street’s consensus $1.35 outlook. Analysts were expecting sales of $423.8 million.

Still, investors sent TFX shares down -1.2% to $158.24 apiece today in late-morning trading.

“On the heels of an extremely strong 4th quarter to end 2015, the company delivered a solid start to 2016, with revenue that was in line with, and adjusted earnings per share that exceeded, our expectations,” chairman & CEO Benson Smith said in prepared remarks. “Despite the headwind of 2 fewer selling days in the quarter, Teleflex was able to expand our adjusted gross and operating margins from the year-ago period and drive double-digit adjusted earnings per share growth.”

Teleflex now expects to post adjusted EPS of $7.10 to $7.25, up from prior guidance of $7.00 to $7.15, and stood pat on its sales forecast for constant-currency growth of 5% to 6%, Smith said.

In a separate release, the company said its anesthesia division a pair of new group purchasing agreements with HealthTrust, for laryngeal mask airways and pain management solutions.

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Recent TAVR approvals prompt changes to Direct Flow’s Salus trial

direct-flow-medical-updated-1×1 direct-flow-medical-updated-1x1Direct Flow Medical said today that recent FDA approvals for transcatheter aortic valve replacements prompted it to make changes to the Salus trial of its own TAVR entry.

Salus, originally aimed at enrolling 1,262 patients, is now expected to enroll a little more than half that number, 648 subjects, the company said. Santa Rosa, Calif.-based Direct Flow is also adding best practices and comparisons to TAVRs that are already on the U.S. market, which include the Sapien line from market leader Edwards Lifesciences (NYSE:EW) and the Medtronic (NYSE:MDT) CoreValve device.

The 30-patient feasibility phase of for Salus in 2013 showed a 30-day survival rate of 97%, low procedural complications, no incidence of stroke, a 3% rate of permanent pacing and 100% of patients with mild or less aortic regurgitation. The primary endpoint is composite all-cause mortality and disabling stroke at 12 months.

“Based on recent FDA approvals, the trial now features improved screening, enhanced options for anesthesia, optional intraprocedural dilatation, use of the new DirecTrack delivery system, comparison with all current commercially-available U.S. TAVR devices and a new target enrollment of 648 subjects,” the company said.

“The strengthened Salus trial design reflects our agility in a dynamic global TAVR market to provide the scientific community with a truly meaningful investigation and enhances our ability to achieve our year-end enrollment target,” president & CEO Dan Lemaitre said in prepared remarks.

“Utilizing best practices, comparing with all TAVR devices and being able to evaluate a new delivery system places the Salus trial at the leading edge of TAVR science,” added co-principal investigator Dr. Scott Lim of the University of Virginia.

Direct Flow won CE Mark approval in the European Union for its TAVI device in January 2013.

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Zimmer Biomet logs beat-n-raise Q1

Zimmer Biomet logoZimmer Biomet (NYSE:ZBH) logged a beat-and-raise 1st quarter despite a -38.2% profit slide as sales surged 67.8% compared with Q1 2015.

The Warsaw, Ind.-based orthopedics giant posted profits of $105.9 million, or 52 per share, on sales of $1.90 billion for the 3 months ended March 31; adjusted to exclude 1-time items, earnings per share were $2 even, a full 7 ahead of the consensus expectation on Wall Street, where analysts were looking for revenues of $1.88 billion.

“Zimmer Biomet’s 1st-quarter revenue was at the high end of our expectations coming into the year, laying the groundwork for sequential sales improvement as 2016 progresses. We also continued to make good progress against our net synergy commitments, which supported our ability to again deliver operating margin leverage and strong adjusted earnings per share results,” president & CEO David Dvorak said in prepared remarks. “We remain on pace to exit the year at or above market growth rates, driven by our focused commercial channel and the cross-selling opportunities across our market-leading musculoskeletal portfolio.”

Zimmer Biomet boosted its outlook for the rest of the year, saying it now expects to report adjusted EPS of $7.85 to $8.00, up from $7.80 to $7.95 previously, on constant-currency sales growth of 2.0% to 3.0% compared with prior guidance of between 1.5% and 2.5%.

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BREAKING: Abbott to pay $25B for St. Jude Medical

Abbott to acquire St. Jude MedicalAbbott (NYSE:ABT) said today that it offered to pay a 37% premium for St. Jude Medical (NYSE:STJ) in a $25 billion deal aimed at expanding its cardiac and neurological businesses.

Each unit in the $85-per-share deal consists of $46.75 in cash and 0.8708 ABT shares; at Abbott’s 5-day volume weighted average share price of $43.93 as of April 26, the buyout is worth about $25 billion.

That’s a 37% premium on yesterday’s closing price of $61.97 for STJ shares; the stock was up 27.1% to $78.76 in pre-market trading this morning. ABT shares were down -5.5% to $41.45. 

The companies said the union will create a “best-in-class” competitor in nearly all segments of the cardiovascular market with the 1st or 2nd position “across large and high-growth cardiovascular device markets” with combined annual sales of about $8.7 billion. The deal also calls for Abbott to assume or refinance St. Jude’s $5.7 billion in net debt.

“Bringing together these 2 great companies will create a premier medical device business and immediately advance Abbott’s strategic and competitive position,” Abbott chairman & CEO Miles White said in prepared remarks. “The combined business will have a powerful pipeline ready to deliver next-generation medical technologies and offer improved efficiencies for health care systems around the world.”

“Today’s announcement is an exciting next chapter for St. Jude Medical, bringing together 2 industry leaders with a shared passion for innovation, culture and patients,” added St. Jude president & CEO Michael Rousseau. “Our combined scale will expand the global reach, competitiveness and impact of our medical device innovation for physicians and hospitals. This transaction provides our shareholders with immediate value and the opportunity to participate in the significant upside potential of the combined organization. I’d like to thank our 18,000 employees whose hard work and commitment help us deliver leading medical technologies to patients around the world.”

Abbott said it expects the transaction to add 21¢ to adjusted earnings per share in 2017 and 29¢ the next year.

Material from Reuters was used in this report.

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Dark clouds over Europe?

Emergo GroupBy Ronald Boumans, Emergo Group

At this moment the Trilogues, the negotiations between the European Parliament, the European Council and the European Commission regarding the Medical Devices and In-Vitro Diagnostic Devices Regulations, are still going on. As indicated in my previous blog post, no outcomes have been made public except for some rumors. Basically we must presume that all proposals are still being negotiated. Until the publication of the final document there are no certainties about the exact requirements.

Educated guess

But even without those final documents published and with many details still missing, the general picture is quite clear: Conformity assessment procedures will be more complex, manufacturers will have to use more clinical data to demonstrate compliance, post-market surveillance activities will have to meet higher standards and data management will become more important.

For IVD manufacturers this means many of them will no longer be able to self-certify their devices. Notified Body intervention will be needed for a majority of IVDs, which implies that the quality of the technical documentation has to be robust enough for external review and the evidence for demonstrating performance will have to meet higher standards.

Manufacturers of medical devices will have to re-certify their current devices, even if they have been on the market for years without any serious problems. The current set of clinical data referencing “equivalent devices” may become useless, as the equivalence will be limited to quite identical devices. Apart from that, the performance of the device needs to be demonstrated with clinical data from the device itself. So many devices may have to be tested in clinical evaluations again.

Worrying thoughts

Currently there are 61 notified bodies accredited. But at a recent RAPS-NL meeting, rumors were that the European Commission’s database for Notified Bodies NANDO has fallen behind with keeping up on current developments, and that in reality there are now only 41 Notified Bodies left. Right now it is not possible to get confirmation about which Notified Bodies are preparing for the new Regulations, and which will stop their activities for the medical device industry. That means that manufacturers may suddenly have to find new Notified Bodies.

But there is an even bigger problem developing. The European authorities are in the process of creating teams of auditors for accreditation of Notified Bodies for the new Regulations. It is estimated that once the Regulations are published, these teams will need six months to prepare for the accreditations. And then they can process about 17 Notified Bodies per year during the 2.5 remaining years of the transition period. Anybody can do the math: It will be a struggle for most Notified Bodies to be ready to certify manufacturers in time for the new Regulations come into power.

Does that mean manufacturers will have to face long waiting lists for certification of their devices? Maybe not… There is a possibility that these manufacturers will take so much longer to get to that stage that this anticipated peak in the workload will be spread out over a longer period, because the manufacturers are not able to collect their clinical data. As stated above, they will have to perform more clinical investigations with their devices to demonstrate safety and performance. It may be quite a problem to get a test with a proven device approved by an ethical committee, but the main challenge will probably be to find hospitals that still have any capacity for such tests. Manufacturers that try to get their devices on the Chinese or Indian market may be able to use their results with local patients for these clinical data. But that may not be a viable option for all devices.

Apart from that, the administrative backbone of all this should be the new Eudamed, the European Database for Medical Devices. Although I am optimistic about the readiness of Eudamed in a timely way, I am also aware that Eudamed has a poor track record so far. The step from 33 users (Member States, EEA and European Commission) to about 50,000 or more (Member States, economic operators, citizens…?) is huge, and the amount of data mutations per any given moment in time could go up by 50 to 100 times. That is a challenging step in data management.

This all leads to a very worrying picture: Notified Bodies will not be ready in time, manufacturers will not have sufficient clinical data and therefore standard therapies will suddenly no longer be available. And this may happen even if Eudamed is introduced without any major problem. All these problems will also lead to significant slowing down in the introduction of innovations on the European market. The European patients may be paying a high price for what was intended to be an improvement of the quality and safety of devices.

Temperature of soup

In The Netherlands there is a saying: “The soup is never eaten as hot as it is being served.” In other words, maybe we should not worry too much about the darkest of these scenarios. What if two years into the transition period, it will become clear that manufacturers will not be able to have their devices certified? I am sure politicians will step in with “smart” implementing acts that will suddenly smooth out most of these transition problems. We may see “grandfathering” criteria for clinical data concerning longstanding devices; certificates may suddenly be extended; the capacity of EU-auditor teams may increase and Eudamed suddenly appears to have received sufficient extra funding to get it working. Wherever there is a bottle neck, I am certain politicians will take care so that they will not have to explain to their voters that lifesaving treatment is suddenly no longer available only because of formalities.

Conclusion

The coming years this industry will face huge challenges. But we should not despair, because at the end of the day we all want the same: Patients getting the best treatment available. So whatever the problem you are facing, know that it is in nobody’s interest if a safe and effective device is kept off the European market. And of course I will keep an eye open for you to signal whenever pragmatism prevails.

Ronald Boumans is Senior Global Regulatory Consultant at Emergo’s office in The Netherlands, and a former senior inspector at the Dutch Healthcare Inspectorate.

The opinions expressed in this blog post are the author’s only and do not necessarily reflect those of MassDevice.com or its employees.

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dimecres, 27 d’abril del 2016

Bard sees shares rise on Q1 beat

C.R. BardC.R. Bard (NYSE:BCR) today released its 1st quarter earnings, handily topping the Street’s expectations for revenue and earnings per share and seeing shares rise in after hours trading.

The company reported profits of $116.2 million, or $1.54 per share, on sales of $873.5 million for the 3 months ended March 31, 2016. That amounts to a 16.9% slide on the bottom line as sales grew 6.6% compared with the same quarter in 2015.

After adjusting to exclude 1-time items, earnings per share were $2.34. Analysts on Wall Street were looking for revenue of $836.2 million and earnings per share of $2.17, which Bard squashed.

The company’s shares have lifted 2.3% in after hours, trading at $210.19 as of 4:43 p.m. EDT.

“Our strong results in the first quarter reflect continued momentum from the returns we have seen from our strategic investment plan. We continue to be in investment mode as we focus on shifting the mix of the portfolio to faster growth areas, including product and technology platforms, delivery platforms and increasing our presence in emerging markets,” CEO Timothy Ring said in a prepared statement.

Bard issued updated financial guidance for the fiscal year 2016, expecting to see net sales rise between 6% and 8%, or between 7% and 8.5% excluding the impact of foreign exchange.

Full year 2016 diluted earnings per share are projected to be between $10.05 and $10.18, growing 11% to 12% compared to 2015, the company said.

Yesterday, a West Virginia federal judge dismissed nearly 150 product liability lawsuits brought against Bard over its pelvic mesh products, after an appeals court earlier this year upheld a $2 million verdict against the company in another suit.

Judge Joseph Goodwin of the U.S. District Court for Southern West Virginia, who’s overseeing the multi-district litigation involving thousands of lawsuits filed against Bard and other mesh makers, dismissed 149 of suits yesterday, according to court documents. The devices are designed to treat female urinary incontinence and pelvic organ prolapse. Medtronic (NYSE:MDT) subsidiary Covidien, which supplied the mesh to Bard, was also included in the dismissals.

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Hologic squeaks past Street with Q2 earnings

HologicHologic (NSDQ:HOLX) today released 2nd quarter 2016 earnings that beat the street and provided new guidance for the 2nd half of the year.

The Marlborough, Mass-based company reported profits of $68.9 million, or 24¢ per share, on sales of $693.3 million for the 3 months ended March 26, 2016. That amounts to a 44.1% bottom-line gain as sales grew 5.8% compared with the same period in 2015.

Adjusted to exclude 1-time items, earnings per share were 47¢, squeaking by Wall Street analysts estimates of 46¢. The company topped the Street’s rev estimates by just under $6 million.

Stocks haven’t moved much in after hours trading, dipping a slim 1.3% to trade at $37.33 as of 4:33 p.m. EDT.

The company released updated guidance for the next quarter and full fiscal year 2016 along with its earnings. For the next quarter, Hologic expects to see revenue between $695 and $705 million and earnings per share of 47¢ to 48¢.

For the full year, the company expects to see between $2.81 and $2.83 billion and earnings per share between $1.89 and $1.91.

“We posted another good quarter, highlighted by 14.6% growth in non-GAAP EPS. The strength of our business model was evident at multiple levels in the quarter. Our U.S. businesses grew revenue at a double-digit rate, we improved both gross and operating margins while making significant investments in our future, and we aggressively redeployed capital, leading to EPS growth more than double the rate of sales,” CEO Steve MacMillan said in prepared remarks.

Last week, Hologic said it won FDA 510(k) clearance for its Affirm prone biopsy system and launched the platform in the U.S.

The Affirm biopsy system is the 1st prone biopsy system to offer both 2D and 3D imaging-guided breast biopsies, the Marlborough, Mass.-based company claims. The device is designed to allow radiologists to target lesions found during 3D mammography exams.

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J-Pac Medical Announces Lab-on-Chip Reagent Blister Development Kits for Diagnostic Applications

J-Pac MedicalJ-Pac Medical, a trusted manufacturing and packaging outsourcing partner to medical device and diagnostic companies, today announced that it will now offer development kits to allow customers to test the use of reagent blisters with their microfluidic formats. J-Pac Medical has been an industry pioneer in the area of lab-on-chip reagent delivery and produces frangible and burst seal reagent blisters for both development stage and commercial customers.

Technology advancements in microfluidics are driving continued growth of point-of-care in-vitro diagnostics by enabling lab-on-chip test formats. J-Pac Medical’s reagent blisters offer an elegant and cost effective solution for dispensing reagents on these test formats by allowing a unit of measure to be precisely delivered to a target well or reaction zone. This delivery method reduces test complexity by storing and enabling the controlled release of testing reagents, eliminating the need for complex fluid handling.

J-Pac Medical burst and frangible seal blisters deliver reagents on common lab-on-chip formats. Burst blisters are typically used in applications where the test equipment pierces and evacuates the fluid and come in a dome format. Frangible seal blister technology is used to deliver controlled release of reagents using J-Pac’s differential seal technology. These blisters come in two standard formats, teardrop and teacup.

“Frangible and burst seals offer a convenient way to bring new or improved diagnostic products to market quickly and affordably,” said Jeff Barrett, president and CEO, J-Pac Medical. “We want to help our customers find the best blister for their microfluidic diagnostic platforms and are pleased to offer test kits that will help them explore the options that J-Pac can provide so they can make a more informed decision.”

There are three categories of development kits for each blister configuration:

  • Standard fluid volumes using water
  • Standard fluid volumes using the customer’s reagent
  • Custom fluid volumes using the customer’s reagent

Utilizing J-Pac Medical blisters helps provide accurate test results that both the patient and clinician can trust, while eliminating the multi-step lab processes where human error and instrument contamination are most likely to occur.

Kits come in standard quantities of 100 blisters. To order or request pricing please contact customer service at 1.603.692.9955

J-Pac Medical
www.j-pacmedical.com

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Stryker reveals patient navigation aid for join replacements

StrykerStryker (NYSE:SYK) said today it is launching the JointCoach digital patient engagement and education platform designed to improve overall care delivery and experience for patients undergoing joint replacement surgery.

The program release was announced at Stryker’s 9th annual Orthopedic & Spine Summit in Chicago.

“This new platform should play a big part in helping our hospital customers manage a patient’s entire episode of care through CJR and voluntary payment bundles for 90 days and beyond. It represents another example of how Stryker is helping to facilitate the customers understanding of the shift to value-based care,” Stryker reconstructive division GM Stuart Simpson said in a press release.

JointCoach is a web-based communication platform designed to allow joint replacement patients to communicate to their hospital care team from the surgery to 90 days after being discharged from the hotel.

The system allows hospitals to deliver pre-op preparation, medication and pain control information as well as other key facets of recovery during the process, Stryker said.

“At the end of the day, it’s the patient who matters the most. With this new platform, we have created a continuum of patient service that results in optimal care and positive outcomes.  We feel that it’s a necessary advancement in the orthopedic space,” Simpson said in prepared remarks.

Stryker will offer the new platform through its Destination Centers of Superior Performance offering across more than 720 hospitals in the U.S., the company said.

Earlier this month, Stryker said it closed its buy of CareFusion‘s vertebral compression fracture portfolio from Becton Dickinson & Co. (NYSE:BDX) in an all-cash transaction and released a street-beating 1st quarter earnings report.

The purchased portfolio is comprised of minimally-invasive systems used in vertebroplasty and vertebral augmentation procedures, which BD purchased as part of CareFusion’s portfolio in March 2015.

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MassDevice.com +5 | The top 5 medtech stories for April 27, 2016

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Say hello to MassDevice +5, a bite-sized view of the top five medtech stories of the day. This feature of MassDevice.com’s coverage highlights our 5 biggest and most influential stories from the day’s news to make sure you’re up to date on the headlines that continue to shape the medical device industry.

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5. FDA wants more from Proteus, Otsuka on ‘smart pill’

MassDevice.com news

Otsuka Pharmaceutical and Proteus Digital Health said today that the FDA issued a complete response letter requesting more information from the companies for the combination of the Proteus “smart pill” and Otsuka’s Abilify anti-depressant drug.

The Proteus pill is designed to signal a wearable patch after it reaches the stomach, recording and time-stamping data from the pill and other patient metrics. The data can be relayed via Bluetooth to mobile devices and, with consent, to healthcare providers. Read more


4. Boston Scientific chides EU docs for unsupervised Lotus valve implants

MassDevice.com news

Boston Scientific today released a field safety notice warning after an investigation identified that a “number of sites” had been performing procedures with the Lotus Valve System without an appropriately trained field clinical specialist.

The Marlborough, Mass.-based company said that the presence of a Boston Scientific field clinical specialist is required unless a site is designated as “independent” by the company. Independent site designation requires 2 physicians undergo face-to-face training, perform a minimum of 6 lotus valve procedures with a proctor and an additional 4 valve implants with FCS supervision. Read more


3. Edwards Lifesciences boosts outlook after Street-beating Q1

MassDevice.com news

Edwards Lifesciences yesterday boosted its outlook after posting 1st-quarter numbers that beat expectations on Wall Street, with CEO Mike Mussallem saying the FDA could approve an intermediate-risk indication for its Sapien 3 heart valve this year.

The Irvine, Calif.-based company reported profits of $143.0 million, or 66¢ per share, on sales of $697.3 million for the 3 months ended March 31, marking a 15.9% bottom-line gain on sales growth of 18.1% compared with Q1 2015. Adjusted to exclude 1-time items, earnings per share were 71¢, ahead of the Street’s forecast for 66¢. Read more


2. Synergy, Watchman help Boston Scientific swing to Q1 black

MassDevice.com news

Boston Scientific reaped the rewards of its turnaround push today with a 1st-quarter swing to black ink, raising its outlook for the rest of the year, helped by contributions from its Synergy and Watchman devices.

Investors reacted by sending BSX shares up 6.0% to $20.85 in pre-market trading this morning. Read more


1. Stryker blasts DJO Global, ex-reps in poaching lawsuit

MassDevice.com news

Stryker this week blasted orthopedics rival DJO Global in a poaching lawsuit claiming that DJO and a quintet of ex-sales reps gutted its Indiana sales territory and are looking to lure more of the former Stryker colleagues into leaving.

The lawsuit aims “to stop the targeted raiding of its employees by its direct competitor DJO Global, in concert with several former Stryker employees,” Kalamazoo-Mich.-based Stryker said in the April 25 complaint. The suit alleges that the scheme by DJO and a quintet of former Stryker sales reps – Kywin Supernaw, Brad Bolinger, Justin Davis, Jake Eisterhold, Eric Huebner and Tim Broecker – took a roughly 33% bite out of its ortho & trauma sales in Indiana last year. Read more

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