CareFusion Corp. (CFN) revealed that it has received approval from the U.S. Food and Drug Administration (FDA) to update labeling with reduced dry times for its ChloraPrep products. ChloraPrep is a broad-scale antiseptic for minor and major medical procedures and acts rapidly on a wide spectrum of bacteria. Following the announcement, shares of the company rose 2.8% to $38.99, after the market closed yesterday.
The reduced dry times apply to several CareFusion ChloraPrep products, including Sepp, Frepp, Single and Triple Swabsticks. These products have a reduced dry time on dry surgical sites of 30 seconds and a dry time on moist surgical sites of one minute. They are no longer labeled for electrocautery procedure.
CFN has also updated dry time changes to 30 seconds for dry sites and one minute for moist sites (for procedures not using an ignition source) in its ChloraPrep 3mL applicators.
However, dry times for procedures that use an ignition source remain unchanged at a minimum of three minutes on hairless skin and up to one hour in hair. Labeling for 10.5mL and 26mL applicators of ChloraPrep also remain unchanged.
CareFusion posted flat adjusted earnings per share of 44 cents for the first quarter of fiscal 2014 compared with the comparable quarter a year ago but exceeded the Zacks Consensus Estimate of 40 cents. Adjusted net earnings fell marginally by 3% to $96 million from $99 million a year ago.
Revenues in the quarter dipped marginally by nearly 1% (both in reported and constant currency) to $830 million, topping the Zacks Consensus Estimate of $818 million. The decrease was driven by a fall in Medical Systems revenues.
For fiscal 2014, CFN continues to expect revenues to grow between 1 and 4% on a constant currency basis. Adjusted earnings are also expected to lie in the previously guided range of $2.30 to $2.40 per share. The current Zacks Consensus Estimate of $2.34 for the year lies within the guided range.
The guidance is based on an assumed weighted average outstanding share count of approximately 215 million, which includes the impact of expected share repurchases during fiscal 2014.
CareFusion is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. Currently, CFN retains a Zacks Rank #3 (Hold).
Other stocks that are performing well in the medical products industry include Hill-Rom Holdings, Inc. (HRC) and INSYS Therapeutics, Inc. (INSY) with a Zacks Rank #1 (Strong Buy), and Medtronic, Inc. (MDT) with a Zacks Rank #2 (Buy).
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