Key Developments For VNUS Medical Technologies Inc
Covidien plc Completes Acquisition of VNUS Medical Technologies
Covidien plc announced that one of its subsidiaries has completed the previously announced acquisition of VNUS Medical Technologies for approximately $440 million, net of cash and investments acquired.
VNUS Medical Technologies Announces Published Study Shows VNUS ClosureFAST System Significantly Superior To Laser For Varicose Vein Treatment
VNUS Medical Technologies announced that the Journal of Vascular & Interventional Radiology, the monthly publication of the Society of Interventional Radiology, has published a study showing the VNUS ClosureFAST system for radiofrequency (RF) thermal ablation to be significantly superior to endovenous laser (EVL) for treating venous reflux, the underlying cause of symptomatic varicose veins. The RECOVERY trial was a multicenter, randomized, single-blinded study of 87 vein ablation procedures in 69 patients, comparing the ClosureFAST radiofrequency catheter to the 980 nm endovenous laser system. The study found that for all primary endpoints in the trial, the ClosureFAST radiofrequency catheter was statistically superior to laser treatment in providing a fast and comfortable recovery for the patient after treatment. Specifically, radiofrequency vein ablation using the ClosureFAST catheter was shown to result in less postoperative pain, less bruising, less tenderness, and better reduction of symptoms than laser as soon as two days after treatment, and remaining considerably better for at least two weeks or longer. In addition, all statistical differences in postprocedural and quality-of-life parameters were superior in the ClosureFAST group, and minor complications were five times less prevalent.
Covidien Ltd. Announces Definitive Agreement To Acquire VNUS Medical Technologies, Inc.
Covidien Ltd. and VNUS Medical Technologies, Inc. announced that Covidien has reached a definitive agreement to acquire VNUS Medical Technologies. The Boards of Directors of both companies have unanimously approved the transaction, pursuant to which a wholly owned subsidiary of Covidien will pay $29.00 in cash per VNUS share for a total of approximately $440 million, net of cash acquired. The transaction, which will take the form of an all cash tender offer followed by a second step merger, is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed by June 30, 2009. Once the transaction has been completed, Covidien will report the VNUS business as part of its Vascular product line in the Medical Devices segment.
VNUS Medical Technologies Issues Q1 2009 Guidance; Earnings Guidance Below Analysts' Estimates; Issues FY 2009 Revenue Guidance Above Analysts' Estimates; Issues FY 2009 Mixed Earnings Guidance
VNUS Medical Technologies announced that for the first quarter of 2009, it expects total revenue to be in the range of $22.9-$24.1 million, net income to be in the range of breakeven to $0.1 million, GAAP earnings per share (EPS) to be in the range of breakeven to $0.01, adjusted EBITDA to be in the range of $1.5-$1.7 million and fully taxed EPS to breakeven. For fiscal 2009, the Company expects total revenue to be in the range of $107.0-$111.0 million, net income to be in the range of $9.5-$11.6 million, GAAP EPS to be in the range of $0.55-$0.69, adjusted EBITDA to be in the range of $18.2-$21.2 million and fully taxed EPS to be in the range of $0.39-$0.48. According to Reuters Estimates, analysts were expecting the Company to report revenue of $23.3 million, EBITDA of $2.7 million and EPS of $0.06 for the first quarter of 2009; revenue of $103.8 million, EBITDA of $17.2 million and EPS of $0.56 for fiscal 2009.
VNUS Medical Technologies Issues Q4 2008 Outlook Below Analysts' Estimates; Issues FY 2008 Outlook; Earnings Outlook Below Analysts' Estimates
VNUS Medical Technologies announced that for the fourth quarter of 2008, it expects total revenues to be in the range of $24.0 - $25.3 million, net income to be in the range of $1.4 - $2.2 million, GAAP earnings per share (EPS) of $0.09 - $0.13, adjusted EBITDA of $3.1 - $4.0 million, and fully taxed EPS of $0.06 - $0.09. For fiscal 2008, the Company expects total revenues to be in the range of $97.9 - $99.3 million, net income to be in the range $11.5 - $12.2 million, GAAP EPS of $0.69 - $0.73, adjusted EBITDA of $17.4 - $18.3 million and fully taxed EPS of $0.14 - $0.17 (excludes $8.7 million of one time royalties associated with pre-2008 sales) . According to Reuters Estimates, analysts were expecting the Company to report EPS of $0.20, net profit of $3.4 million and EBITDA of $4.6 million on revenue of $25.8 million for the fourth quarter of 2008; EPS of $0.78, net profit of $13.1 million and EBITDA of $15.5 million on revenue of $98.5 million for fiscal 2008.
