PLAINSBORO, N.J. (AP) -- Medical device maker Integra LifeSciences said Monday it took a loss in the third quarter after absorbing a $46.7 million impairment charge, and said it agreed to buy Covidien's DuraSeal and other products for as much as $265 million.
Integra said it took the impairment charge because of challenges facing its U.S. spine business. Those include lower prices and lower reimbursement rates, and pressure from payers against using some types of procedures.
The company said it will pay $235 million for DuraSeal and related products, including other sealants and surgical products. Integra could make another $30 million in payments based on the performance of the business. DuraSeal is a sealant used to prevent the leakage of cerebrospinal fluid in cranial surgery. Integra said the business had about $65 million in revenue in 2012, and the companies expect the acquisition to close during the first quarter of 2014.
Integra said it lost $28.6 million, or $1.02 per share, in the third quarter. A year ago it reported net income of $13.2 million, or 46 cents per share. Excluding one-time items the company said it had net income of 72 cents per share, down from 85 cents per share a year ago. Revenue increased 2 percent, to $213.2 million from $210.1 million.
Analysts expected adjusted net income of 70 cents per share and $213.8 million in revenue, according to FactSet.
Integra narrowed its guidance for the year. The company is now forecasting adjusted net income of $2.50 to $2.60 per share on $838 million to $843 million in revenue. Its previous estimates included net income of $2.40 to $2.70 per share and $840 million to $852 million in revenue.
Analysts expect an adjusted profit of $2.52 per share and $841.5 million in revenue on average.
Integra LifeSciences Holdings Corp. stock lost 23 cents to $43.42 in aftermarket trading following the release of the earnings report.
Covidien PLC shares were unchanged aftermarket.