Medtronic, Inc. (MDT) recently launched MASTERGRAFT Strip - a new, highly flexible ceramic scaffold used in combination with a patient’s own bone for fusing multiple levels of the posterolateral spine, in the U.S. The strip is used by surgeons for a variety of bone grafting procedures.   MASTERGRAFT Strip is primarily used when the spine loses stability or its natural shape. The product offers a continuous latticework for longer grafting procedures at the back of the spine. It also enables maximization of the bony surface area contact and allows for continuous bone growth over large bony gaps. MASTERGRAFT Strip is available in unique lengths that eliminate the requirement of multiple strip units for a long fusion.   MASTERGRAFT Strip’s unique features and ease of handling during implantation makes it a preferred choice for spine surgeons. We therefore expect the product to increase the Spinal and Biologics business

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American Medical Systems Holdings, Inc. (AMMD) reported strong fiscal third quarter results. For the quarter, earnings per share was 27 cents, beating the Zacks Consensus Estimate of 20 cents and the year-ago earnings of 18 cents. Earnings per share for the reported quarter were also ahead of the company’s previous guidance of 17 to 21 cents.   Sales   Total sales for the quarter increased 4.9% year over year to $123.2 million. Excluding an unfavorable foreign currency translation (FX), net sales increased 6.7% year over year. On a geographic basis, U.S. sales accounted for roughly 75% of total sales and increased 9.2% year over year. International sales declined 6.1% year over year.   In terms of business segments: Men’s health revenues increased 6.6% year over year to $54.7 million. Growth was primarily due to higher sales of the erectile restoration system.   Women’s health revenues increased 4% year over

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SurModics’ (SRDX) fourth-quarter earnings per share came in at 18 cents, below the Zacks Consensus Estimate of 20 cents. The company reported revenues of $19.2 million, down 17% compared to the year ago period. In addition to quarterly results, SurModics came out with fiscal year 2009 results. The company recorded revenues of $121.5 million in 2009, up 25%, compared to $97 million in the previous year and earnings per share of $1.07 for 2009.

On a business unit basis, apart from Diagnostic, revenues from the other three segments – Cardiovascular, Ophthalmology and Other Markets, recorded a decline in revenues for the fourth quarter. While Diagnostic revenues increased 2% year over year to $4.6 million, revenues for the other three segments declined 12% to $9.8 million, 29% to $1.9 million and 41% to $2.9 million, respectively.

Cardiovascular segment results were impacted by the continuing decline in Cypher sales. SurModics derives a substantial

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Medtronic, Inc. (MDT) recently started a feasibility study of an interventional treatment for erectile dysfunction (ED) using a specially designed drug-eluting stent system. The study is known as ZEN (Zotarolimus-Eluting Peripheral Stent System for the Treatment of Erectile Dysfunction in Males with Sub-Optimal Response to PDE5 Inhibitors) and is being conducted under an investigational device exemption (IDE) issued by the U.S. Food and Drug Administration (FDA).   The study is expected to enroll 50 patients at up to ten medical centers in the United States over 2010. It has been seen that there is a link between erectile dysfunction and coronary artery disease. ED is primarily caused by vascular disease due to the deterioration of the endothelium. Medtronic’s drug-eluting stent preserves endothelial function of the native vessels. The study evaluates the safety and enhanced erectile function of pelvic artery stenting. Results are expected in 2011.      If successfully

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American Medical Systems (AMMD) recently announced that it has agreed to sell its female sterilization assets and technology to Conceptus Inc. (CPTS).   Under the $23.6 million cash deal, Conceptus acquired all patents and intellectual property associated with the Ovion business, which was acquired by American Medical Systems in July 2005. American Medical Systems acquired Ovion Inc. to further broaden its gynecology franchise. Ovion, a pre-commercialization company, developed an office-based technology for the delivery of a permanent birth control solution for women.   Conceptus intends to make use of the Ovion technology to develop future versions of its Essure permanent female contraceptive. Essure, a non-incisional permanent birth control method, received approval from the U.S. Food and Drug Administration (FDA) in 2002.   Under the terms of the present agreement, Conceptus will not be required to make any royalty payments to American Medical Systems. Furthermore, the transaction releases ...

St. Jude Medical Inc. (STJ) recently made a $15 million equity investment in Micell Technologies, a small company that operates in the niche market of developing drug-coated stents.

We view this as St. Jude’s strategy to acquire Micell in future and bolster its position in the cardiovascular segment. However, the investment does not give St. Jude a right to have a voting member in Micell’s board. Other details of the deal were not disclosed.

Micell’s drug-coated stents are less likely to produce blood clots than drug-eluting stents. A stent is a small metal tube used in surgeries to open up clogged arteries.

The equity investment provides Micell with a partner and funding source for exploring other applications in coating technology.

St. Jude Medical is a leading medical device manufacturer that designs, manufactures and distributes medical devices to treat cardiovascular and neurological conditions. The company operates through four business

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Boston Scientific Corp. (BSX) is geared up for its landmark MADIT-CRT trial final results, which will be announced on Sept 1. The MADIT trial is evaluating the effectiveness of the company’s cardiac resynchronization therapy defibrillators (CRT-Ds), compared to the traditional implantable cardioverter defibrillators (ICDs). MADIT-CRT is the world’s largest randomized NYHA Class I/II CRT-D trial engulfing more than 1,800 asymptomatic or mildly symptomatic patients across 110 centers in 14 countries.   Preliminary results from this trial were published on June 23, which indicated that the trial met its primary objectives. Results demonstrated a 29% reduction in death or heart failure in patients implanted with CRT-Ds as compared to ICDs.   Positive final results will boost demand for Boston’s cardiac resynchronization therapy defibrillators, which will essentially drive the company’s top-line. Boston Scientific reported fiscal second quarter results with the cardiac rhythm management (CRM) segment registering revenue growth of 5% year

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Medtronic, Inc. (MDT) will report its fiscal first quarter results tomorrow before the market opens. The Zacks Consensus Estimate for the current quarter is pegged at 78 cents per share. Revenues are estimated at $3.82 billion.     Stability in the company’s two leading segments – heart and spinal devices – is expected in the first quarter. The company suffered major setbacks in these segments. Medtronic has lost market share of implantable cardiac defibrillators (ICDs) to rivals Boston Scientific Corp. (BSX) and St. Jude Medical (STJ) in 2009. The company also recalled roughly 37,000 pacemakers due to manufacturing defects.   The company is looking to reduce headcount following the dismal last quarter earnings, which declined roughly 69% on lower sales, restructuring and other charges. It expects to reduce its headcount for a maximum of 1,800 employees.    Medtronic is one of the world’s leading medical ...

Medtronic Inc. (MDT) will pay $400 million in legal settlement charges to Abbott Laboratories (ABT) in connection with stents and stent-delivery systems. In addition, Medtronic will recompense $42 million to Evysio Medical devices for using its patents on stent. According to the agreement, neither Medtronic nor Abbott will sue each other in the field of coronary stent business for at least next 10 years.

Medtronic will report these settlement charges in the next quarter. These charges constitute roughly 20% of the company’s net profit for the last fiscal year. As a result, we believe that the company’s bottom-line will be severely affected in the next quarter. However, Medtronic has resolved almost all litigations affecting its stent business with these settlements. It can now allocate more resources to its cardiovascular business.

Medtronic is one of the leading medical technology companies in the world, specializing in implantable and interventional

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BSX, Boston Scientific Corporation

PWRM, Power 3 Medical Products Inc, PWRM.OB

PennyOmega.com Watch List!

PennyOmega.com Watch List ! for Tuesday July 21, 2009

Our Picks at PennyOmega.com for Tuesday July 21, 2009 are:

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BSX, Boston Scientific Corporation

BSX operates as a developer, manufacturer, and marketer of medical devices used in various interventional medical specialties worldwide.

BSX’s products help physicians and other medical professionals improve the patients quality of life by providing alternatives to surgery.

*To consider about BSX

Today, after Closing Bell, BSX announced financial results for the second quarter ended June 30, 2009.

Net sales for the second quarter of 2009 were $2.074 billion, as compared to net sales of $2.024 billion for the second

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