Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

Kensey Nash Corp. (KNSY: Quote) announced that it has entered into a settlement agreement with St. Jude Medical Inc. (STJ: Quote) 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.

Register
To receive FREE breaking news email alerts for Kensey Nash Corp and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A number of major retailers will be open on Thanksgiving for early Black Friday shopping events. Kohl's department stores will kick off Black Friday sales two hours earlier this year, at 6 p.m. Thanksgiving Day, while Macy's, Bon-Ton and Best Buy will open at the same time. J.C. Penney and Sears... Twitter Inc. has replaced its head of product Daniel Graf just six months after luring him over from Google, according to multiple reports. Graf, previously known for his work leading Google Maps, will retain his vice president of product title and work on Twitter's geolocation features, the Wall... LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.