Sector: Health Care | Focus: Health Care Equipment
HQ: Irvine, California
Financial Risks
The company faces risks from pending lawsuits, including those related to product infringement, securities class actions, and potential FCPA violations. Uncertain tax positions, including ongoing IRS examinations and potential adjustments, pose a significant risk. Investment risks exist due to potential declines in the value of debt and equity investments. Adverse outcomes in legal and tax matters could materially impact financial results. Environmental compliance risks are also present, although not quantified.
Financial Upside
The sale of the Critical Care product group generated a substantial $3.3 billion pre-tax gain. Acquisitions of Endotronix, Inc. and JC Medical, Inc. aim to expand the company's structural heart portfolio and TAVR offerings. Continued sales growth in TAVR and TMTT products, along with new product approvals (e.g., SAPIEN 3 Ultra RESILIA valve), represent potential future revenue increases. Share repurchase programs offer a potential return to shareholders.
