Top Device Companies

Cardinal Health To Make Medical Tech Division Into Carefusion Company

Cardinal Health says it plans to spin off its medical technology division into a separate company to be called Carefusion. Carefusion itself would have nearly two dozen medical divisions of its own. The division had a $448 million profit in fiscal 2009 by specializing on drug-infusion pumps, respiratory devices and systems for dispensing medicine. Carefusion headquarters are to be in San Diego. (Click here for more)

“Cardinal Health Spinoff Signals New Direction” – AP (8/31/09)

Click Here To Find Out Why Medical Device Manufacturers’ Employee Training Programs Are Under FDA Scrutiny?

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Covidien To Get Medical Imaging Isotopes With Dutch Resumption

Covidien’s reliance on isotopes for its imaging machines got a boost when a nuclear reactor in the Netherlands resumed production. Makers of the devices had faced a global shortage of the ingredient required for diagnostic imaging when major suppliers in Canada and the Netherlands had to shut down reactors. Canadian authorities closed one of only five nuclear reactors producing the required isotopes because of problems, and the shut-down of the Netherlands reactor for scheduled maintenance coincided to contribute to a global shortage. Covidien and Lantheus Medical Imaging are the two major U.S. suppliers of isotopes, with Cardinal Health a major customer. (Click here for more)

“Covidien Says Dutch Isotope Reactor Running Again” – Reuters (U.K.) (8/20/09)

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Cardinal Health Spins Off CareFusion, Names George Barrett As Head

Cardinal Health has selected George Barrett to serve as its chairman and CEO in the wake of splitting the company in two with CareFusion becoming a spinoff. Barrett replaces R. Kerry Clark, who retired. CareFusion is to be traded as a separate company on the New York Stock Exchange. Barrett had been vice chairman and CEO of Cardinal’s Healthcare Supply Chain Services. (Click here for more)

“Cardinal Health Names Barrett CEO Starting Aug. 31” – Forbes (AP) (8/5/09)

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Cardinal Health Faces Critical Isotope Shortage For Imagers

Cardinal Health has issued an advisory saying the company is running out of medical isotopes central to nuclear imaging tests made with the firm’s equipment. A Canadian reactor that provides a third of the world’s medical isotopes has been forced to shut down. Cardinal Health, which said it was facing a critical shortage, does not expect any financial impact from the situation because it has arranged to get isotopes from other suppliers. Because of the 67-hour shelf life of isotopes, it is impossible for makers of imaging equipment to stockpile the product. (Click here for more)

“Cardinal Health Warns Clients Of Isotope Shortage” – Reuters (U.K.) (7/9/09)

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Cardinal Health’s CareFusion Spinoff Faces Challenges

Cardinal Health’s recent spinoff of its CareFusion poses several problems for CEO David Schlotterbeck, who has the assignment of turning around the unit. Cardinal recently had to warn of potential risks with a CareFusion product, other items have been recalled or faced other regulatory actions and the unit now has to become a distinct entity as an independent company. Schlotterbeck also has to convince CareFusion employees to comply with his $2.5 million culture initiative calling for two days of training for each of nearly 16,000 workers by December, 2010. (Click here for more – a subscription may be required)

“Firm Offers Blueprint For Makeover In A Spinoff” – Wall Street Journal (6/29/09)

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Covidien, Cardinal Health Warn Customers Of Isotope Shortage

Covidien and Cardinal Health are among medical-device makers facing a prolonged shortage of the isotope molybdenum-99 essential for some nuclear imaging. Canadian authorities closed a reactor in May after a leak of heavy water was discovered. The reactor produces a third of the world’s supply of the isotope. Covidien has advised customers it was uncertain how long it would be necessary to conserve current supplies. Cardinal Health advised its customers to save isotopes for only the most critical cases until the problem is resolved.(Click here for more – a subscription may be required)

“Isotope Shortage Could Affect Medical Imaging” – Modern Healthcare (6/1/09)

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Medtech Investing 2009: What's Changed?

Article preview from Start-Up - May 2009

The medical device industry is undergoing a crisis of funding, but not of confidence, according to a panel of investors convened at Windhover's recent medtech conference, In3 West,. The conference panel sought to explore how the medical device investment community is operating in these troubled times, how they will invest going forward, and how they will support their companies if things don't improve. We were especially curious to know if the funding challenges that start-ups face are really due to the overall dire economy, or if that dark cloud merely masks changing fundamentals in the medical device industry that are making it more difficult for companies to find funding, gain FDA approval, and enjoy a healthy exit. Our panel weighs in on the matter.

Cardinal Health Executives Settle With SEC Over Securities Fraud Charges

Three Cardinal Health executives have settled with the Securities and Exchange Commission over charges of securities fraud. The three were accused of presenting a phony picture of Cardinal’s finances to investors in contrast to the company’s true economic performance. The three executives settled without admitting or denying wrongdoing in a financial scheme the SEC said lasted from September, 2000, to March, 2004. (Click here for more)

“SEC And Ex-Cardinal Health Officers Settle Fraud Case” – Reuters (5/27/09)

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Cardinal Health To Move Gear, Staff To Ohio State U. For Development

Cardinal Health has decided to shift 50 employees and add more staff at Ohio State University as part of a $10 million project to develop diagnostic drugs. The company plans to start a new operation at the school focused on molecular-imaging research, manufacturing and nuclear medicine. In return, the Ohio Department of Development is contributing $7.5 million to go along with Cardinal’s $2.5 million for the venture. In addition, Cardinal is to move a $4 million high-tech manufacturing device to the OSU campus. (Click here for more)

“Cardinal, OSU Joining Forces” – Columbus Dispatch (4/30/09)

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Cardinal Health To Spin Off CareFusion Unit For Device Business

Cardinal Health plans to spin off its CareFusion device division and other clinical and medical products units in an effort to eliminate 1,300 jobs from its books. The new company would be called CareFusion Corp., leaving Cardinal Health with its main business as a drug wholesaler. The spinoff business, which includes medication infusion and dispensing technologies, respiratory care, surgical instruments, diagnostics and other devices, accounted for $4.5 billion in revenues during the fiscal year that ended last June. (Click here for more)

“Cardinal Health To Spin Off Unit, Cut Jobs” – Reuters (3/31/09)

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