Medical Device Makers Keep Investing Despite Regulatory Uncertainties
November 02 2010 - 11:25AM
Marketwired
This year medical device makers have been ramping up their Merger
and Acquisition activity as well as their R&D budgets. This
comes as somewhat of a surprise as the industry is full of
uncertainty at the moment. Poor unemployment numbers have made
patients reluctant to spend on medical devices, forcing companies
to lower their prices. Meanwhile the FDA is reviewing the
industry's safety rules and has proposed dozens of changes in the
approval program that covers 90 percent of medical devices. The
Bedford Report examines the outlook for companies in the Medical
Appliances & Equipment Industry and provides research reports
on Medtronic, Inc. (NYSE: MDT) and St. Jude Medical, Inc. (NYSE:
STJ). Access to the full company reports can be found at:
www.bedfordreport.com/2010-11-MDT
www.bedfordreport.com/2010-11-STJ
During its third quarter earnings call, executives from St. Jude
Medical conceded that the market for heart-rhythm devices isn't
expanding as fast as they had hoped. Despite headwinds, the company
plans to continue with its growth strategy, highlighting key
acquisitions which could boost the company's sales figures.
Last month St. Jude announced that will acquire AGA Medical
Holdings for around $1.08 billion in cash and stock in an attempt
to add products used to treat heart defects and blood-vessel
issues. The acquisition, which is subject to regulatory approvals,
is expected to close by the end of the year.
The Bedford Report releases regular market updates on the
Medical Appliances & Equipment Industry so investors can stay
ahead of the crowd and make the best investment decisions to
maximize their returns. Take a few minutes to register with us for
free at www.bedfordreport.com and get exclusive access to our
numerous analyst reports and industry newsletters.
Believing innovation is critical to success, Medtronic's finance
chief, Gary Ellis, recently said that R&D would be one of the
last areas the company would choose to cut spending -- regardless
of economic conditions. In the last year Ellis says Medtronic spent
between $1.5 billion and $1.6 billion on R&D.
The Bedford Report provides Analyst Research focused on equities
that offer growth opportunities, value, and strong potential
return. We strive to provide the most up-to-date market activities.
We constantly create research reports and newsletters for our
members. The Bedford Report has not been compensated by any of the
above mentioned publicly traded companies. The Bedford Report is
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