07.29.15
$3.3 Billion
KEY EXECUTIVES:
Timothy R. Ring, Chairman and CEO
John H. Weiland, President and Chief Operating Officer
Christopher S. Holland, Sr. VP, Chief Financial Officer
Samrat (“Sam”) S. Khichi, Sr. VP, General Counsel and Secretary
Patricia G. Christian, VP, Quality, Regulatory and Medical Affairs
Andrea J. Casper, VP, Regulatory Affairs
Todd W. Garner, VP, Investor Relations
Frank Lupisella Jr., VP, Controller
NO. OF EMPLOYEES: 13,900
GLOBAL HEADQUARTERS: Murray Hill, N.J.
Climbing two spots from last year on our list of top companies, C.R. Bard Inc. continues to grow slowly and steadily. In the beginning of FY and calendar year 2013, the company announced a three-year strategic investment plan involving emerging markets and new product categories, which CEO Timothy R. Ring said the company would “aggressively pursue.” Fiscal 2013 saw a string of acquisitions that contributed to Bard’s short-term success while laying the groundwork for future growth, and FY2014 saw a significant expansion in international markets.
Zacks analysts observed that the plan is coming along nicely, pointing out that fourth-quarter results of 2014 reflect that the strategic investment plan has begun to generate returns. Indeed, for the fourth quarter 2014, net sales in the United States were $591.6 million and net sales outside the United States were $275.6 million, an increase of 14 percent and 1 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2014 net sales outside the United States increased 5 percent over the prior-year period. Net sales for the full year 2014 were $3.42 billion, an increase of 9 percent over the prior-year period.
“As anticipated in our strategic investment plan, our emerging market sales continued to increase and, by the end of 2014, represented about 9 percent of our total revenue,” Ring said in the company’s annual report. “Overall, about a third of our worldwide sales representatives are now located in emerging markets. We are seeing higher productivity from our international teams as they become more established and broaden their scope and capabilities. Today, 65 percent of our global work force is located outside the United States. We have expanded our international product offerings and have a pipeline of existing products that await regulatory approval in new markets. In fact, last year, we registered 192 new products internationally.”
Early in 2014, Bard authorized a share repurchase plan of $500 million in stock, in addition to approximately $55 million remaining under the company’s prior authorization. This helped Bard’s earnings per share numbers which rose from $6.51 in FY2013 to $8.40 in FY2014, an increase of 29 percent.
In October, the U.S. Food and Drug Administration (FDA) approved the Lutonix drug coated balloon PTA catheter for percutaneous transluminal angioplasty, after pre-dilatation, for the treatment of de novo or restenotic lesions up to 150 mm in length in native vascular disease of the superficial femoral or popliteal arteries with reference vessel diameters of 4-6 mm—a success which added to the almost 200 new products registered internationally under Ring’s watch. The approval gave the company a strong position as it is, according to Bard, the first and only FDA-approved drug coated balloon available in the United States for the treatment of femoropopliteal occlusive disease. The American Heart Association estimates that peripheral arterial disease, a life-threatening condition, affects at least 8 million Americans.
“The Lutonix balloon serves as a good example of how we intend to shift the mix of our portfolio to faster revenue growth categories,” Ring said. “We first acquired a potential game-changing technology platform, invested in further development and clinical research, and then became the first-to-market in the United States in a new fast-growing segment through careful and diligent execution.”
This approval bolstered Bard’s vascular device portfolio, which boasted a 12 percent growth over FY2013 with net sales of $928.3 million (see included chart for more details). This business was also affected by two significant events: in 2013, Bard sold its electrophysiology (EP) division to Boston Scientific Corporation, which led to a seemingly huge drop in EP sales for Bard; secondly, in 2014, C.R. Bard began collecting royalty payments from medical equipment supplier W L Gore & Associates Inc., with which Bard has been having a years-long patent dispute with over blood vessel graft technology that Bard claims Gore unlawfully used. The collection on royalties comes after an almost unbelievable 40-year battle in which Bard alleged Gore attempted to patent a technology that was rightfully its own to claim. That was in 1974. In 2001, the U.S. Patent and Trademark Office issued the patent to Bard. Bard then sued Gore for past infringement, and in 2007 a jury found that Gore’s stent and vascular grafts willfully infringed and awarded Bard $185 million. In 2009, the judge added an ongoing royalty, which Gore has paid into escrow at a rate of $120 to $140 million per year while the case proceeded. In October 2013, U.S. District Judge Mary Murguia allowed Bard to collect the portion of the judgment dealing with the finding of infringement that is not subject to appeal, which totals $854 million and includes past damages and an ongoing royalty. Her finding of willfulness was upheld on appeal, which will add more to the award amount.
This year, Bard is focusing on the commercialization of Lutonix, as well as continuing its thus far successful investment and growth strategy.
“As we move into 2015, we remain focused on the execution of this investment plan,” Ring said. “By continuing our efforts to expand into faster-growing geographies; invest in research and development (R&D) in faster-growing product segments; and acquire new growth platforms, we expect to continue to shift the mix of our product portfolio toward faster, sustainable growth and profitability.”
KEY EXECUTIVES:
Timothy R. Ring, Chairman and CEO
John H. Weiland, President and Chief Operating Officer
Christopher S. Holland, Sr. VP, Chief Financial Officer
Samrat (“Sam”) S. Khichi, Sr. VP, General Counsel and Secretary
Patricia G. Christian, VP, Quality, Regulatory and Medical Affairs
Andrea J. Casper, VP, Regulatory Affairs
Todd W. Garner, VP, Investor Relations
Frank Lupisella Jr., VP, Controller
NO. OF EMPLOYEES: 13,900
GLOBAL HEADQUARTERS: Murray Hill, N.J.
Climbing two spots from last year on our list of top companies, C.R. Bard Inc. continues to grow slowly and steadily. In the beginning of FY and calendar year 2013, the company announced a three-year strategic investment plan involving emerging markets and new product categories, which CEO Timothy R. Ring said the company would “aggressively pursue.” Fiscal 2013 saw a string of acquisitions that contributed to Bard’s short-term success while laying the groundwork for future growth, and FY2014 saw a significant expansion in international markets.
Zacks analysts observed that the plan is coming along nicely, pointing out that fourth-quarter results of 2014 reflect that the strategic investment plan has begun to generate returns. Indeed, for the fourth quarter 2014, net sales in the United States were $591.6 million and net sales outside the United States were $275.6 million, an increase of 14 percent and 1 percent, respectively, over the prior-year period. Excluding the impact of foreign exchange, fourth quarter 2014 net sales outside the United States increased 5 percent over the prior-year period. Net sales for the full year 2014 were $3.42 billion, an increase of 9 percent over the prior-year period.
“As anticipated in our strategic investment plan, our emerging market sales continued to increase and, by the end of 2014, represented about 9 percent of our total revenue,” Ring said in the company’s annual report. “Overall, about a third of our worldwide sales representatives are now located in emerging markets. We are seeing higher productivity from our international teams as they become more established and broaden their scope and capabilities. Today, 65 percent of our global work force is located outside the United States. We have expanded our international product offerings and have a pipeline of existing products that await regulatory approval in new markets. In fact, last year, we registered 192 new products internationally.”
Early in 2014, Bard authorized a share repurchase plan of $500 million in stock, in addition to approximately $55 million remaining under the company’s prior authorization. This helped Bard’s earnings per share numbers which rose from $6.51 in FY2013 to $8.40 in FY2014, an increase of 29 percent.
In October, the U.S. Food and Drug Administration (FDA) approved the Lutonix drug coated balloon PTA catheter for percutaneous transluminal angioplasty, after pre-dilatation, for the treatment of de novo or restenotic lesions up to 150 mm in length in native vascular disease of the superficial femoral or popliteal arteries with reference vessel diameters of 4-6 mm—a success which added to the almost 200 new products registered internationally under Ring’s watch. The approval gave the company a strong position as it is, according to Bard, the first and only FDA-approved drug coated balloon available in the United States for the treatment of femoropopliteal occlusive disease. The American Heart Association estimates that peripheral arterial disease, a life-threatening condition, affects at least 8 million Americans.
“The Lutonix balloon serves as a good example of how we intend to shift the mix of our portfolio to faster revenue growth categories,” Ring said. “We first acquired a potential game-changing technology platform, invested in further development and clinical research, and then became the first-to-market in the United States in a new fast-growing segment through careful and diligent execution.”
This approval bolstered Bard’s vascular device portfolio, which boasted a 12 percent growth over FY2013 with net sales of $928.3 million (see included chart for more details). This business was also affected by two significant events: in 2013, Bard sold its electrophysiology (EP) division to Boston Scientific Corporation, which led to a seemingly huge drop in EP sales for Bard; secondly, in 2014, C.R. Bard began collecting royalty payments from medical equipment supplier W L Gore & Associates Inc., with which Bard has been having a years-long patent dispute with over blood vessel graft technology that Bard claims Gore unlawfully used. The collection on royalties comes after an almost unbelievable 40-year battle in which Bard alleged Gore attempted to patent a technology that was rightfully its own to claim. That was in 1974. In 2001, the U.S. Patent and Trademark Office issued the patent to Bard. Bard then sued Gore for past infringement, and in 2007 a jury found that Gore’s stent and vascular grafts willfully infringed and awarded Bard $185 million. In 2009, the judge added an ongoing royalty, which Gore has paid into escrow at a rate of $120 to $140 million per year while the case proceeded. In October 2013, U.S. District Judge Mary Murguia allowed Bard to collect the portion of the judgment dealing with the finding of infringement that is not subject to appeal, which totals $854 million and includes past damages and an ongoing royalty. Her finding of willfulness was upheld on appeal, which will add more to the award amount.
This year, Bard is focusing on the commercialization of Lutonix, as well as continuing its thus far successful investment and growth strategy.
“As we move into 2015, we remain focused on the execution of this investment plan,” Ring said. “By continuing our efforts to expand into faster-growing geographies; invest in research and development (R&D) in faster-growing product segments; and acquire new growth platforms, we expect to continue to shift the mix of our product portfolio toward faster, sustainable growth and profitability.”