logo
Share SHARE
FONT-SIZE Plus   Neg

Kensey Nash Settles Angio-Seal License Disputes With St. Jude Medical

Kensey Nash Corp. (KNSY) announced that it has entered into a settlement agreement with St. Jude Medical Inc. (STJ) which resolves all disputes between the two companies relating to the Angio-Seal vascular closure device licenses, as well as other related claims.

As part of the settlement agreement, the companies also agreed to extend their collagen supply agreement through 2017 and expand the minimums to be provided over the contract term to five million units.

As per the terms of the agreement, Kensey Nash will receive $39 million from St. Jude, payable in 12 equal quarterly payments beginning March 31, 2012, in lieu of all future royalties for the Angio-Seal and all other related claims.

The Company expects to recognize the $39 million as royalty revenue on a straight line basis beginning January 2012 through April 2014, which is the expiration of the last to expire of patents exclusively licensed by Kensey Nash to St. Jude under the settlement agreement and acknowledged by both parties to cover the Angio-Seal device.

Additionally, Kensey Nash said that it will continue to be the exclusive outside supplier of collagen for the Angio-Seal device through 2017. The approximate value of the minimum orders under the collagen supply agreement over the five year extension is $31 million.

For the third-quarter, Kensey Nash now expects earnings to be in the range of $0.33- $0.35 per share, and total revenue of $21.7 million - $22.1 million. Analysts polled by Thomson Reuters expect the company to report earnings of $0.23 per share on revenues of $20.51 million for the third-quarter. Analysts' estimates typically exclude special items.

For the fourth-quarter, the company now anticipates earnings to be in the range of $0.43- $0.45 per share, and total revenue of $23.2 million - $24.0 million. The total revenue outlook Included approximately $1.5 million of additional milestone revenue due to the expected close-out of the Spectranetics development agreement. Analysts expect the company to report earnings of $0.26 per share on revenues of $21.25 million for the fourth-quarter.

Looking ahead for fiscal 2012, the company now anticipates earnings to be in the range of $1.51- $1.55 per share, adjusted earnings of $1.59 - $1.63 per share and total revenue of $87.9 million - $89.1 million. Analysts expect the company to report earnings of $1.33 per share on revenues of $84.82 million for fiscal 2012.

The company provided preliminary top level guidance for fiscal 2013 which includes the impact of the settlement, and the expected collagen orders under the new supply agreement. Total fiscal 2013 revenues are expected to be approximately $100 million, and earnings per share are expected to exceed $2.00 per share. Analysts expect the company to report earnings of $1.69 per share on revenues of $91.15 million for fiscal 2013.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Ciena Corp., a provider of communications networking solutions, on Thursday reported a turnaround to profit in the fourth quarter on higher revenues and lower expenses. However results for the quarter missed analysts' estimates. Looking ahead, the company forecast revenue for the first quarter of fiscal 2017 in line with analysts' expectations. Wearable fitness device maker Fitbit Inc. said it has acquired the assets of struggling smartwatch startup Pebble, including key personnel and intellectual property related to software and firmware development. The acquisition excludes Pebble's hardware products. Financial terms of the deal were not disclosed. Starbucks is teaming up with Pokémon Go, a location based augmented reality game, to turn its stores into PokéStops and Gyms, reports said. Further, the coffee giant reportedly would open Italian bakeries that serve pizza, with the first store expected to open in late 2017.
comments powered by Disqus
Follow RTT