We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Industry Outlook Highlights: Boston Scientific, Stryker, Medtronic, Abbott and Varian Medical
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 18, 2018 – Today, Zacks Equity Research discusses the Industry: Medical Devices, Part 2, including Boston Scientific (BSX - Free Report) , Stryker Corporation (SYK - Free Report) , Medtronic (MDT - Free Report) , Abbott (ABT - Free Report) and Varian Medical .
With the suspension of the controversial 2.3% medical device tax for another two years, the medical device industry is currently riding high on optimism. AdvaMed, the medical device industry’s lobbying group, which strongly advocated for this relief, noted that the tax repeal will provide a huge impetus to the companies to channelize their turnovers into strategic consolidations, research and developments and also help in creating new job opportunities.
According to an article published in Daily News, the tax before going into effect from January 2020 will save the device companies as much as $3.7 billion during the two-year suspension.
The U.S. medical device market is undergoing substantial transformation. An aging population, longer expectancy for life, growing healthcare awareness in emerging economies combined with powerful long-term tailwinds, including mergers & acquisitions (M&As) and product innovation, have been contributing to growth of the sector.
M&A Boom Continues
It is yet to be seen how far the benefits of the tax repeal have been redirected to M&As till now. Meanwhile, according to Mark Bonifacio, President of Bonifacio Consulting Services, private equity and strategic OEM (Original equipment manufacturer) buyers are competing for assets in all sectors of medical contract manufacturing and broadening their portfolios or investing in new technologies.
He strongly stated that although the start of 2018 was sluggish with respect to M&As, it was due to uncertainties over changes in the global healthcare market and the fate of Obamacare’s medical device tax. Now that the doubts are gradually getting cleared, the industry is once again heading toward another year of significant M&A activity.
This year’s biggest M&A deal seems to be in the cards with the Wall Street Journal’s latest rumored news related to two mammoths of MedTech space, Boston Scientific and Stryker Corporation. The report says that both the rivals may consider a bid for consolidation.
The analysts seem to be optimistic about the rumored deal and believe that after the colossal mergers of Medtronic -- Covidien and Abbott-St. Jude Medical in the last couple of years, Boston Scientific also needs to make a mammoth move to maintain its foothold in the highly competitive medical-technology space.
Following the company’s $25 billion consolidation with St. Jude Medical in January, Abbott recently closed the $5.3-billion acquisition of Alere. With the successful wrap up of this transaction, the combined company is anticipated to emerge as a leading player in the $7 billion point-of-care diagnostic space.
Another mega consolidation in the recent times was that of medical device major, Becton, Dickinson and Co. and medical, surgical, diagnostic, and patient care devices provider C. R. Bard, for $24 billion. After the completion of the deal in January, Becton, Dickinson is on its way to expand to new areas like vascular access segments – PICCs (peripherally inserted central catheters), midlines and drug delivery ports.
Varian Medical also inked a major M&A deal. The company recently signed an agreement to acquire Australia-based global life sciences company, Sirtex Medical Limited for a total deal value of $1.28 billion. The investment will strengthen the company’s position in interventional oncology therapies. This apart, in its effort to gain foothold in the emerging economy, the company recently acquired Cooperative CL Enterprises, a leading distributor of radiotherapy equipment in Taiwan.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Industry Outlook Highlights: Boston Scientific, Stryker, Medtronic, Abbott and Varian Medical
For Immediate Release
Chicago, IL – June 18, 2018 – Today, Zacks Equity Research discusses the Industry: Medical Devices, Part 2, including Boston Scientific (BSX - Free Report) , Stryker Corporation (SYK - Free Report) , Medtronic (MDT - Free Report) , Abbott (ABT - Free Report) and Varian Medical .
Industry: Medical Devices, Part 2
Link: https://www.zacks.com/commentary/167761/medtech-overcomes-policy-hurdles-long-term-prospects-bright
With the suspension of the controversial 2.3% medical device tax for another two years, the medical device industry is currently riding high on optimism. AdvaMed, the medical device industry’s lobbying group, which strongly advocated for this relief, noted that the tax repeal will provide a huge impetus to the companies to channelize their turnovers into strategic consolidations, research and developments and also help in creating new job opportunities.
According to an article published in Daily News, the tax before going into effect from January 2020 will save the device companies as much as $3.7 billion during the two-year suspension.
The U.S. medical device market is undergoing substantial transformation. An aging population, longer expectancy for life, growing healthcare awareness in emerging economies combined with powerful long-term tailwinds, including mergers & acquisitions (M&As) and product innovation, have been contributing to growth of the sector.
M&A Boom Continues
It is yet to be seen how far the benefits of the tax repeal have been redirected to M&As till now. Meanwhile, according to Mark Bonifacio, President of Bonifacio Consulting Services, private equity and strategic OEM (Original equipment manufacturer) buyers are competing for assets in all sectors of medical contract manufacturing and broadening their portfolios or investing in new technologies.
He strongly stated that although the start of 2018 was sluggish with respect to M&As, it was due to uncertainties over changes in the global healthcare market and the fate of Obamacare’s medical device tax. Now that the doubts are gradually getting cleared, the industry is once again heading toward another year of significant M&A activity.
This year’s biggest M&A deal seems to be in the cards with the Wall Street Journal’s latest rumored news related to two mammoths of MedTech space, Boston Scientific and Stryker Corporation. The report says that both the rivals may consider a bid for consolidation.
The analysts seem to be optimistic about the rumored deal and believe that after the colossal mergers of Medtronic -- Covidien and Abbott-St. Jude Medical in the last couple of years, Boston Scientific also needs to make a mammoth move to maintain its foothold in the highly competitive medical-technology space.
Following the company’s $25 billion consolidation with St. Jude Medical in January, Abbott recently closed the $5.3-billion acquisition of Alere. With the successful wrap up of this transaction, the combined company is anticipated to emerge as a leading player in the $7 billion point-of-care diagnostic space.
Another mega consolidation in the recent times was that of medical device major, Becton, Dickinson and Co. and medical, surgical, diagnostic, and patient care devices provider C. R. Bard, for $24 billion. After the completion of the deal in January, Becton, Dickinson is on its way to expand to new areas like vascular access segments – PICCs (peripherally inserted central catheters), midlines and drug delivery ports.
Varian Medical also inked a major M&A deal. The company recently signed an agreement to acquire Australia-based global life sciences company, Sirtex Medical Limited for a total deal value of $1.28 billion. The investment will strengthen the company’s position in interventional oncology therapies. This apart, in its effort to gain foothold in the emerging economy, the company recently acquired Cooperative CL Enterprises, a leading distributor of radiotherapy equipment in Taiwan.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.