Kensey Nash Corp. (KNSY, Financial) filed Quarterly Report for the period ended 2010-12-31.
Kensey Nash Corp. has a market cap of $212.8 million; its shares were traded at around $25.01 with a P/E ratio of 13.6 and P/S ratio of 2.6. Kensey Nash Corp. had an annual average earning growth of 13% over the past 10 years. GuruFocus rated Kensey Nash Corp. the business predictability rank of 3-star.Hedge Fund Gurus that owns KNSY: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns KNSY: Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors.
Orteq Sports Medicine. On December 21, 2010, we entered into a manufacturing and supply agreement with, and, pursuant to an investment agreement, made a non-controlling minority equity investment in preferred shares of Orteq Ltd. (Orteq Sports Medicine or Orteq) of approximately $2.5 million. Orteq is a privately-held medical device company headquartered in London, United Kingdom, specializing in the field of biodegradable polymer technology for meniscus repair. Pursuant to the manufacturing and supply agreement with Orteq, we acquired the exclusive worldwide manufacturing rights of Actifit® (Actifit) product line from Orteq, for a period of ten years from the date of its first U.S. commercial sale, for approximately $1.6 million. Actifit is a biocompatible synthetic meniscal scaffold which received its CE Mark approval in 2008 for the treatment of irreparable partial meniscal tears and is currently being sold throughout Europe. Additionally, under the investment agreement with Orteq, we have committed to make an additional equity investment of approximately 637,000 British Pounds in preferred shares of Orteq, which is expected to approximate $1 million dependent upon the future exchange rate in effect at the date of the additional investment, if Orteq receives approval or conditional approval from the FDA to conduct an
Nerites Corporation. On January 28, 2011, we acquired substantially all of the net assets and certain operational liabilities of Nerites Corporation (Nerites), a privately-held developer of medical adhesives and anti-fouling coatings based in Madison, Wisconsin for a purchase price of approximately $20 million, of which approximately $17 million was paid at closing using available cash on hand, with the remainder being held back by us as a security for certain potential indemnification obligations. Nerites is developing a technology platform of adhesive-based biomaterials which could allow us to further our penetration into the regenerative medicine market. Nerites technology is in the early stages of development and product sales are at least three to five years away.
As previously disclosed in the second quarter of fiscal 2010, we had implemented a cost reduction plan, primarily associated with our reduced endovascular activities and lower production volume. This cost reduction plan included headcount reductions, as well as reduced work schedules. We incurred $1.9 million in pre-tax charges in our second quarter of fiscal 2010 consisting of a $1.0 million pre-tax severance charge and a $944,000 pre-tax unabsorbed overhead expense charge.
Read the The complete Report
Kensey Nash Corp. has a market cap of $212.8 million; its shares were traded at around $25.01 with a P/E ratio of 13.6 and P/S ratio of 2.6. Kensey Nash Corp. had an annual average earning growth of 13% over the past 10 years. GuruFocus rated Kensey Nash Corp. the business predictability rank of 3-star.Hedge Fund Gurus that owns KNSY: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns KNSY: Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
Vitoss Foam, Vitoss, and Vitoss Bioactive Foam Royalty Income. Since 2003, we have partnered with Orthovita to co-develop and commercialize a series of unique and proprietary bone void filler products, branded VitossTM Foam, the first of which was launched in March 2004, and the most recent, VitossTM Bioactive Foam, which was launched during the fourth quarter of fiscal 2008. We receive a royalty on Orthovitas end-user sales of VitossTM Foam and VitossTM Bioactive Foam products. In addition, in August 2004, we entered into an agreement to acquire the proprietary rights of a third party inventor of the VitossTM technology for $2.6 million (the Assignment Agreement). Under the Assignment Agreement, we receive an additional royalty from Orthovita on the end-user sales of all Orthovita products containing the VitossTM technology, up to a total royalty to be received of $4.0 million, with approximately $285,000 received in the first six months of fiscal 2011 and $298,000 remaining to be received as of December 31, 2010. We expect to earn the balance of the royalty income under the Assignment Agreement during fiscal 2011. We believe the Orthovita component of our royalty income will continue to grow over the next fiscal year primarily due to product line extensions.Orteq Sports Medicine. On December 21, 2010, we entered into a manufacturing and supply agreement with, and, pursuant to an investment agreement, made a non-controlling minority equity investment in preferred shares of Orteq Ltd. (Orteq Sports Medicine or Orteq) of approximately $2.5 million. Orteq is a privately-held medical device company headquartered in London, United Kingdom, specializing in the field of biodegradable polymer technology for meniscus repair. Pursuant to the manufacturing and supply agreement with Orteq, we acquired the exclusive worldwide manufacturing rights of Actifit® (Actifit) product line from Orteq, for a period of ten years from the date of its first U.S. commercial sale, for approximately $1.6 million. Actifit is a biocompatible synthetic meniscal scaffold which received its CE Mark approval in 2008 for the treatment of irreparable partial meniscal tears and is currently being sold throughout Europe. Additionally, under the investment agreement with Orteq, we have committed to make an additional equity investment of approximately 637,000 British Pounds in preferred shares of Orteq, which is expected to approximate $1 million dependent upon the future exchange rate in effect at the date of the additional investment, if Orteq receives approval or conditional approval from the FDA to conduct an
Nerites Corporation. On January 28, 2011, we acquired substantially all of the net assets and certain operational liabilities of Nerites Corporation (Nerites), a privately-held developer of medical adhesives and anti-fouling coatings based in Madison, Wisconsin for a purchase price of approximately $20 million, of which approximately $17 million was paid at closing using available cash on hand, with the remainder being held back by us as a security for certain potential indemnification obligations. Nerites is developing a technology platform of adhesive-based biomaterials which could allow us to further our penetration into the regenerative medicine market. Nerites technology is in the early stages of development and product sales are at least three to five years away.
As previously disclosed in the second quarter of fiscal 2010, we had implemented a cost reduction plan, primarily associated with our reduced endovascular activities and lower production volume. This cost reduction plan included headcount reductions, as well as reduced work schedules. We incurred $1.9 million in pre-tax charges in our second quarter of fiscal 2010 consisting of a $1.0 million pre-tax severance charge and a $944,000 pre-tax unabsorbed overhead expense charge.
Read the The complete Report
