Published: Sun, September 23, 2018
Medical | By

Medical-device giant Medtronic to buy Mazor Robotics for US$1.6bn

Medical-device giant Medtronic to buy Mazor Robotics for US$1.6bn

The company operates in the United States, Eastern Europe, Western Europe and Asia. Mazor's core technology has received more than 15 U.S. Food and Drug Administration clearances and has been the subject of more than 60 publications, leading the spine robotics market on the evidence front.

Mazor's CEO Uri Hadomi was questioned a year ago by the Israel Securities Authority on suspicion of using insider information concerning the previous deal with Medtronic, during which he became a shareholder in the company. BidaskClub cut shares of Mazor Robotics from a hold rating to a sell rating in a report on Saturday, May 26th. The company has a consensus rating of Hold and an average price target of $61.08.

Mazor Robotics is one of the components of the ROBO Global Robotics & Automation Index which has grown significantly over the last five years, returning a compound annual 19%, comfortably outperforming other benchmarks. Finally, Cantor Fitzgerald initiated coverage on Mazor Robotics in a report on Thursday, May 31st. They set a neutral rating and a $57.00 target price on the stock. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company's stock.

Mazor Robotics (NASDAQ:MZOR) opened at 22.97 on Friday. Mazor Robotics has a 52 week low of $41.60 and a 52 week high of $76.56. The stock has a 50 day moving average price of $23.41 and a 200-day moving average price of $18.64.

Mazor Robotics (NASDAQ:MZOR) last issued its quarterly earnings results on Tuesday, August 2nd. The medical instruments supplier reported ($0.14) earnings per share for the quarter, missing the Thomson Reuters' consensus estimate of ($0.01) by ($0.13).

However, Mazor still hasn't fully recovered from a record drop in its shares, after second-quarter earnings and revenue failed to meet expectations. During the same period in the previous year, the firm posted ($0.05) EPS. Mazor Robotics's revenue was down 14.8% on a year-over-year basis.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. First Allied Advisory Services Inc. grew its holdings in shares of Mazor Robotics by 217.2% during the second quarter. Sturgeon Ventures LLP owned about 0.26% of Mazor Robotics worth $3,817,000 at the end of the most recent quarter. Centaurus Financial Inc. acquired a new stake in Mazor Robotics during the 2nd quarter valued at approximately $139,000. "The acquisition of Mazor adds robotic-assisted guidance systems to our expanding portfolio of enabling technologies, and we intend to further cultivate Mazor's legacy of innovation in surgical robotics with the site and team in Israel as a base for future growth.' This transaction builds on a relationship originated in May 2016 under a multi-phased strategic and equity investment agreement between Medtronic and Mazor". Institutional investors and hedge funds own 18.72% of the company's stock.

Mazor Robotics Ltd., an Israeli biotech firm that develops robotic surgical systems, announced Friday it was being acquired by Irish-American medical device company Medtronic for a sum of $1.64 billion, the biggest-ever "exit" for an Israeli biotech company. These systems have guided the placement of more than 250,000 implants in around 40,000 procedures.

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