07.24.12
28. C.R. Bard
$2.9 Billion
KEY EXECUTIVES:
Timothy Ring, Chairman & CEO
John H. Weiland, President & Chief Operating Officer
Christopher S. Holland, Chief Financial Officer
Gary D. Dolch, Ph.D., Sr. VP, Quality, Regulatory & Medical Affairs
NO. OF EMPLOYEES: 12,100
GLOBAL HEADQUARTERS: Murray Hill, N.J.
According to a financial report released by Zacks Research Group in December 2010, “C.R. Bard’s well-diversified end-markets and vast product portfolio (used in life-saving, less-invasive surgical procedures) insulate it from fluctuations in any single therapeutic category.” The company’s performance for fiscal 2011 (ended Dec. 31) seemed to prove the research correct. Bard develops medical devices in four categories: vascular, urology, oncology and surgical specialties. Products range from devices that treat hernias, to stents that prevent blood clots from traveling to the lungs, catheters that reduce hospital-acquired infections, and ports that deliver chemotherapy, reducing frequent needle sticks for children and adults.
Net sales for the year were $2.9 billion, an increase of 6 percent compared with fiscal 2010. Net income attributable to common shareholders was $328 million and diluted earnings per share available to common shareholders was $3.69, a decrease of 36 percent and 31 percent, respectively, compared with 2010 results. Adjusting for items that affect comparability between periods, 2011 net income attributable to common shareholders was $568.9 million and diluted earnings per share available to common shareholders was $6.40, an increase of 6 percent and 14 percent, respectively, as compared with 2010 results.
Out of net sales of $2.9 billion, the Vascular unit generated the largest percentage of sales at 29 percent. A close second was Oncology at 27 percent, after which was Urology with 25 percent and Surgical Specialties at 16 percent.
In the third quarter, Bard released the Encor Enspire biopsy system under the Vascular umbrella. The device is a next-generation version of the company’s existing console-based vacuum assisted breast biopsy technology that it acquired in 2010. The new platform has a touch screen interface, real-time visualization of the biopsy needle, and is adjustable while in the breast tissue. It also features a single-insertion, multiple-sample capability with local anesthesia delivery. The device was well-received by the market, John H. Weiland, company president and chief operating officer, and Timothy M. Ring, chairman and CEO, said in the company’s 2011 annual report.
Another new device that pumped up Vascular sales was the newest addition to the Finesse Ultra breast biopsy family, the Finesse Ultra 10 probe. The device is a hand-held system that performs vacuum-assisted biopsies, and is designed to take multiple samples via a single insertion method while also delivering larger tissue samples.
New products were not the only trick up Bard’s Vascular sleeve, though. There was significant growth in the peripheral stent business, driven by advancements in the treatment of lesions in the superficial femoral artery (SFA). According to the company’s annual report, Bard’s LifeStent device is the only stent on the market indicated for SFA. The company’s Crosser CTO Recanalization Catheter that was purchased in 2010 has filled an unmet need in the lower limb arterial disease space. According to the company, the catheter enables physicians to penetrate hardened blockages in blood vessels, restoring blood flow with the help of angioplasty.
Furthermore, Bard purchased Lutonix Inc. in December just before the close of the financial year. Lutonix is the manufacturer of Lutonix DCB, a new drug-coated balloon catheter (DCB) for peripheral and coronary interventions. “Its drug-coated balloon technology could ultimately be a game-changer in [the vascular] area,” said Weiland and Ring in their letter to shareholders, noting that the Lutonix DCB is the first and only DCB under an investigational device exemption from the U.S. Food and Drug Administration (FDA)—meaning the device is permitted to be used in a clinical study in order to collect safety and effectiveness data required to support a premarket approval application or a 510(k) submission to the agency.
Bard’s second most profitable segment, Urology, saw most of its growth and impact outside the United States. There were few new devices to boost Urology in FY2011, with the unit gaining its strength from previously released, strong performing devices. Since its release in 2009, the DigniCare Stool Management System has performed well. Bard expects the new product in this family, the DigniShield SMS device, to perform well for 2012.
In the fourth quarter of FY2011, Bard purchased Medivance Inc., which manufactures therapeutic hypothermia devices. This is a new product space for Bard, and is a growing market segment in general. The American Heart Association, the American Stroke Association, the Brain Trauma Foundation and various international medical associations have issued therapeutic hypothermia guidelines as the clinical data supporting targeted temperature management has grown.
As for Oncology, Bard rolled out the Sapiens Tip Confirmation System, which purportedly eliminates the need for X-rays to confirm the proper placement of peripherally inserted central catheters (PICCs) for medication infusion. The Sapiens Tip is designed to use the patient’s real-time cardiac electrical activity to help the nurse accurately place the PICC. The device had a 91 percent adoption rate among accounts that evaluated the technology and made a final purchase decision, according to Bard. The system will officially be on the market in 2012.
Surgical Specialties launched the Echo PS Positioning System in FY 2011. The device is used in ventral hernia repairs as a laparoscopic delivery technology. Along with this device, Bard’s Ventralight ST mesh with the Sepra resorbable barrier worked together to boost the growth of the ventral repair space.
In FY2011, the company named Todd W. Garner to the position of vice president of investor relations in February. He succeeded Eric J. Shick, who was named vice president of operations strategic programs. Garner earned his bachelor’s degree in accounting from Brigham Young University in Provo, Utah, and his MBA from the University of Texas —Pan American in Edinburg, Texas. Prior to this appointment, he was director of corporate financial reporting and analysis and vice president and controller of Bard Medical Division. Garner started his career with Arthur Andersen LLP and before joining Bard was corporate controller at Echopass Inc.
Bard executive T. Kevin Dunnigan, the company’s longest-tenured director, retired in 2011. He began his time at Bard in 1994 when he joined the Audit, Executive and Finance Committees. G. Mason Morfit, a partner of ValueAct Capital, took his place on the board of directors. ValueAct is one of Bard’s largest investors. Also retiring in 2011 were Christopher D. Ganser, vice president of quality, environmental services and safety; James M. Howard II, vice president of regulatory and quality systems excellence; and Robert L. Mellon, vice president of strategic planning and business development.
Bard named a new senior vice president and chief financial officer in April 2012, Christopher S. Holland. He joined Bard from Aramark Corp., where he served as senior vice president of finance and treasurer.
Kicking off the 2012 fiscal year, CEO Ring said of the company’s first-quarter performance (period ended March 31): “The results this quarter reflect a good start to the year. While we haven’t seen much change in the U.S. environment, our increased focus and investments in international markets have provided rapid returns and strengthened our growth profile. We remain focused on daily execution of our product leadership strategy to take advantage of current opportunities while positioning ourselves for stronger growth in the future.”
$2.9 Billion
KEY EXECUTIVES:
Timothy Ring, Chairman & CEO
John H. Weiland, President & Chief Operating Officer
Christopher S. Holland, Chief Financial Officer
Gary D. Dolch, Ph.D., Sr. VP, Quality, Regulatory & Medical Affairs
NO. OF EMPLOYEES: 12,100
GLOBAL HEADQUARTERS: Murray Hill, N.J.
According to a financial report released by Zacks Research Group in December 2010, “C.R. Bard’s well-diversified end-markets and vast product portfolio (used in life-saving, less-invasive surgical procedures) insulate it from fluctuations in any single therapeutic category.” The company’s performance for fiscal 2011 (ended Dec. 31) seemed to prove the research correct. Bard develops medical devices in four categories: vascular, urology, oncology and surgical specialties. Products range from devices that treat hernias, to stents that prevent blood clots from traveling to the lungs, catheters that reduce hospital-acquired infections, and ports that deliver chemotherapy, reducing frequent needle sticks for children and adults.
Net sales for the year were $2.9 billion, an increase of 6 percent compared with fiscal 2010. Net income attributable to common shareholders was $328 million and diluted earnings per share available to common shareholders was $3.69, a decrease of 36 percent and 31 percent, respectively, compared with 2010 results. Adjusting for items that affect comparability between periods, 2011 net income attributable to common shareholders was $568.9 million and diluted earnings per share available to common shareholders was $6.40, an increase of 6 percent and 14 percent, respectively, as compared with 2010 results.
Out of net sales of $2.9 billion, the Vascular unit generated the largest percentage of sales at 29 percent. A close second was Oncology at 27 percent, after which was Urology with 25 percent and Surgical Specialties at 16 percent.
In the third quarter, Bard released the Encor Enspire biopsy system under the Vascular umbrella. The device is a next-generation version of the company’s existing console-based vacuum assisted breast biopsy technology that it acquired in 2010. The new platform has a touch screen interface, real-time visualization of the biopsy needle, and is adjustable while in the breast tissue. It also features a single-insertion, multiple-sample capability with local anesthesia delivery. The device was well-received by the market, John H. Weiland, company president and chief operating officer, and Timothy M. Ring, chairman and CEO, said in the company’s 2011 annual report.
Another new device that pumped up Vascular sales was the newest addition to the Finesse Ultra breast biopsy family, the Finesse Ultra 10 probe. The device is a hand-held system that performs vacuum-assisted biopsies, and is designed to take multiple samples via a single insertion method while also delivering larger tissue samples.
New products were not the only trick up Bard’s Vascular sleeve, though. There was significant growth in the peripheral stent business, driven by advancements in the treatment of lesions in the superficial femoral artery (SFA). According to the company’s annual report, Bard’s LifeStent device is the only stent on the market indicated for SFA. The company’s Crosser CTO Recanalization Catheter that was purchased in 2010 has filled an unmet need in the lower limb arterial disease space. According to the company, the catheter enables physicians to penetrate hardened blockages in blood vessels, restoring blood flow with the help of angioplasty.
Furthermore, Bard purchased Lutonix Inc. in December just before the close of the financial year. Lutonix is the manufacturer of Lutonix DCB, a new drug-coated balloon catheter (DCB) for peripheral and coronary interventions. “Its drug-coated balloon technology could ultimately be a game-changer in [the vascular] area,” said Weiland and Ring in their letter to shareholders, noting that the Lutonix DCB is the first and only DCB under an investigational device exemption from the U.S. Food and Drug Administration (FDA)—meaning the device is permitted to be used in a clinical study in order to collect safety and effectiveness data required to support a premarket approval application or a 510(k) submission to the agency.
Bard’s second most profitable segment, Urology, saw most of its growth and impact outside the United States. There were few new devices to boost Urology in FY2011, with the unit gaining its strength from previously released, strong performing devices. Since its release in 2009, the DigniCare Stool Management System has performed well. Bard expects the new product in this family, the DigniShield SMS device, to perform well for 2012.
In the fourth quarter of FY2011, Bard purchased Medivance Inc., which manufactures therapeutic hypothermia devices. This is a new product space for Bard, and is a growing market segment in general. The American Heart Association, the American Stroke Association, the Brain Trauma Foundation and various international medical associations have issued therapeutic hypothermia guidelines as the clinical data supporting targeted temperature management has grown.
As for Oncology, Bard rolled out the Sapiens Tip Confirmation System, which purportedly eliminates the need for X-rays to confirm the proper placement of peripherally inserted central catheters (PICCs) for medication infusion. The Sapiens Tip is designed to use the patient’s real-time cardiac electrical activity to help the nurse accurately place the PICC. The device had a 91 percent adoption rate among accounts that evaluated the technology and made a final purchase decision, according to Bard. The system will officially be on the market in 2012.
Surgical Specialties launched the Echo PS Positioning System in FY 2011. The device is used in ventral hernia repairs as a laparoscopic delivery technology. Along with this device, Bard’s Ventralight ST mesh with the Sepra resorbable barrier worked together to boost the growth of the ventral repair space.
In FY2011, the company named Todd W. Garner to the position of vice president of investor relations in February. He succeeded Eric J. Shick, who was named vice president of operations strategic programs. Garner earned his bachelor’s degree in accounting from Brigham Young University in Provo, Utah, and his MBA from the University of Texas —Pan American in Edinburg, Texas. Prior to this appointment, he was director of corporate financial reporting and analysis and vice president and controller of Bard Medical Division. Garner started his career with Arthur Andersen LLP and before joining Bard was corporate controller at Echopass Inc.
Bard executive T. Kevin Dunnigan, the company’s longest-tenured director, retired in 2011. He began his time at Bard in 1994 when he joined the Audit, Executive and Finance Committees. G. Mason Morfit, a partner of ValueAct Capital, took his place on the board of directors. ValueAct is one of Bard’s largest investors. Also retiring in 2011 were Christopher D. Ganser, vice president of quality, environmental services and safety; James M. Howard II, vice president of regulatory and quality systems excellence; and Robert L. Mellon, vice president of strategic planning and business development.
Bard named a new senior vice president and chief financial officer in April 2012, Christopher S. Holland. He joined Bard from Aramark Corp., where he served as senior vice president of finance and treasurer.
Kicking off the 2012 fiscal year, CEO Ring said of the company’s first-quarter performance (period ended March 31): “The results this quarter reflect a good start to the year. While we haven’t seen much change in the U.S. environment, our increased focus and investments in international markets have provided rapid returns and strengthened our growth profile. We remain focused on daily execution of our product leadership strategy to take advantage of current opportunities while positioning ourselves for stronger growth in the future.”
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