Morgan Stanley analyst Steve Beuchaw noted that the firm surveyed 30 dentists and 42 orthodontists in the U.S. and said the results points to slower aligner mix shift and emerging share movements, both of which he said are negative for Align Technology (ALGN). He further points out that the survey was run during 4Q, in advance of the full launch of competing products from 3M (MMM), Danaher (DHR) and Dentsply Sirona (XRAY). Given the survey findings, Beuchaw cut his U.S. volume estimates for Align by 400bps for 2019 and lowered his price target on the stock to $210 from $300 to account for lower estimates and a lower market multiple. He maintains an Equal Weight rating on Align Technology shares. Beuchaw added that the survey was positive for Straumann (STMN), which is covered by Michael Jungling. While investors tend to focus on new entrants from the other three mentioned above, ClearCorrect with support from Straumann was the bigger share winner prospectively in the survey, Beuchaw tells investors.
Friday, January 4, 2019
Rite Aid receives NYSE notice of non-compliance
Rite Aid Corporation announced today that the New York Stock Exchange has notified the company that it is no longer in compliance with NYSE continued listing standard rules because the per share trading price of its common stock has fallen below the NYSE’s share price rule. The NYSE requires the average closing price of a listed company’s common stock to be at least $1.00 per share over a consecutive 30 trading-day period. Rite Aid said it received written notification of the non-compliance on Jan. 3, 2019. In accordance with the NYSE’s rules, Rite Aid has six months from the receipt of the notice to regain compliance with the NYSE’s price condition or until the company’s next annual meeting of stockholders if stockholder approval is required, as would be the case to effectuate a reverse stock split, to cure the share price non-compliance. During this time period, Rite Aid’s common stock will continue to be listed and trade on the NYSE as usual. Rite Aid is in compliance with all other NYSE continued listing standard rules. Rite Aid intends to pursue measures to cure the share price non-compliance, including through a reverse stock split of the company’s common stock, subject to stockholder approval no later than at Rite Aid’s next annual meeting, if such action is necessary to cure the share price non-compliance. Under NYSE rules, Rite Aid can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period Rite Aid has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.
https://thefly.com/landingPageNews.php?id=2843817
Jefferies more cautious on Healthcare Services group for 2019
Jefferies more cautious on Healthcare Services group for 2019. After strong performance in 2018, analyst Brian Tanquilut is more cautious on the Healthcare Services group for 2019 given his belief that sales growth will be “tepid” for most providers as overall utilization flattens out and increased market volatility drives greater scrutiny of debt levels. Given this backdrop, companies that can deliver positive organic or acquisition-driven growth with solid balance sheets should outperform, Tanquilut tells investors in a research note. His top picks in the space are Addus HomeCare (ADUS), Amedisys (AMED), AMN Healthcare (AMN), Encompass Health (EHC), HCA Healthcare (HCA), LHC Group (LHCG) and RadNet (RDNT).
https://thefly.com/landingPageNews.php?id=2843823
Endologix to ensure Nellix System used only within current indications
Endologix announced that in order to ensure optimal outcomes for patients, unrestricted sales and use of the Nellix System will cease immediately, and the product will only be available for use under clinical protocol with pre-screened patients that adhere to the current indications. To ensure optimal clinical outcomes, the Nellix System will, for the foreseeable future, only be available for use under clinical protocol with pre-screened patients that adhere to the current indications. All cases will be pre-screened by a physician panel and supported by Endologix clinical specialists to ensure adherence to protocol. Compassionate use requests will be reviewed in accordance with the process established by the Company and associated national competent authorities. The existing inventory will be voluntarily recalled. These actions are described in a Field Safety Notification issued today. This decision is one of several actions taken by Endologix following a new management mandate in August 2018 to ensure the most appropriate use of each of its devices and is in alignment with a recent publication by the European Society for Vascular Surgery. Endologix has been in contact with regulatory authorities regarding the Nellix System recall and related matters to help ensure patient safety and continued appropriate access to the Nellix System.
https://thefly.com/landingPageNews.php?id=2843825
Miragen Therapeutics initiated at Baird
Miragen Therapeutics initiated with an Outperform at Baird. Baird analyst Madhu Kumar initiated Miragen Therapeutics with an Outperform rating, citing its near cash valuation, potential for its drug candidate in mycosis fungoides, and its undervalued MicroRNA platform. Kumar has a $10 price target on Miragen Therapeutics shares.
https://thefly.com/landingPageNews.php?id=2843853
OrthoPediatrics updates sales agency agreement with Hospithera
OrthoPediatrics announced their recently updated and signed agreement with Hospithera to act as OrthoPediatrics’ exclusive sales agency in Belgium and the Netherlands. Since 2015, Hospithera has been OrthoPediatrics’ stocking distributor, developing sales in these regions. Going forward, OrthoPediatrics will sell direct to hospitals in Belgium and the Netherlands with Hospithera as the company’s exclusive sales agency
https://thefly.com/landingPageNews.php?id=2843857
William Blair sees ‘exceptional entry point’ for Inogen shares
Shares of Inogen are down 55% from the summer highs despite the company beating the Street in Q3, providing new details on its soon-to-be-launched pipeline investments, and initiating 2019 guidance above consensus, William Blair analyst Margaret Kaczor tells investors in a research note. She believes investors have concerns around the company’s increase in sales and marketing investments and long-term market potential. The analyzed Inogen’s recent investments and came away believing that management’s 2019 guidance is likely conservative and that the market is large enough for Inogen to continue to grow at a “healthy” 20%-plus pace over the next several years. At 4.8 times her 2020 revenue target of $523.7M, Kaczor believes Inogen shares offer an “exceptional entry point despite the difficult market backdrop.” She keeps an Outperform rating on the name.
https://thefly.com/landingPageNews.php?id=2843869
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