Blaming "market turmoil," Medtronic announced that the delay of their planned spin-off of Physio-Control. Here's their explanation:
emergency responders and in hospitals -- has been in turmoil since
market leader Medtronic Inc. suspended shipments of its products in
January because of quality issues at its Redmond, Wash., plant.
In reality, the external defibrillator market has in fact been going great guns:
Cardiac Science Corp., of Bothell, Wash., said domestic sales of
AEDs shot up 83 percent in the second-quarter, compared with the same
quarter last year.
Over the past year, its stock rose 28 percent.
Medical Corp., of Chelmsford, Mass., said sales in its North American
pre-hospital market, which includes defibrillators for public places,
increased 43 percent in the third fiscal quarter. But its stock has
performed erratically -- up sharply after Physio-Control announced it
was suspending product shipments, but losing steam in recent months.
A more likely reason to delay the sale is that Medtronic won't get a fair value for Physio-Control until they're off ship hold.
In related news, Welch Allyn announced a recall on their AED 20.
Pictured right is the LifePak AED.