For Immediate Release

Chicago, IL – June 18, 2012 – Today, Zacks Equity Research discusses the U.S. Medical Technologies, including Johnson & Johnson (JNJ - Analyst Report), Boston Scientific Corporation (BSX - Analyst Report), Hologic Inc. (HOLX - Analyst Report), Gen-Probe (GPRO) and Covidien (COV - Analyst Report).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at

http://www.zacks.com/stock/news/77133/medtech-stock-outlook-june-2012

The MedTech companies have resorted to the acquisition route to harness their strengths and diversify their offerings. Major deals on the anvil include Johnson & Johnson's (JNJ - Analyst Report) acquisition of Synthes (scheduled to be completed on June 14th), which should help strengthen its medical device portfolio. This is one of the biggest deals (approximately $21 billion) broached in recent times in the MedTech space. The FTC nod regarding the deal comes with the rider that J&J will have to divest its system for surgically treating serious wrist fractures.

The company intends to sell this system (known as DVR) along with the rest of its product line for treating traumatic injuries, to Biomet Inc. This deal, on the other hand, would enable Biomet to expand its Sports, Extremities and Trauma businesses.

Another MedTech major, Boston Scientific Corporation (BSX - Analyst Report), has been looking to expand through acquisitions to counter the challenges of its core segments. The company's Cardiac Rhythm Management (CRM) portfolio now includes a subcutaneous implantable cardioverter defibrillator (ICD), the S-ICD system, subsequent to the acquisition of Cameron Health.

Hologic Inc. (HOLX - Analyst Report), catering to the healthcare needs of women, recently announced its decision to acquire Gen-Probe (GPRO) for approximately $3.7 billion. This would enable Hologic to strengthen its foothold in the molecular diagnostics space and gain access to Gen-Probe's molecular diagnostic platforms of Tigris and Panther systems. With 61% of revenues from molecular diagnostics and 35% from blood testing, Gen-Probe is a prominent player in molecular diagnostics products and services that are used primarily to diagnose human diseases, screen donated human blood and help ensure transplant compatibility.

Healthcare products maker, Covidien (COV - Analyst Report) seems to be on an acquisition spree. The company plans to acquire Israel-based Oridion Systems for approximately $300 million expanding its portfolio in respiratory monitoring equipment. Other recent acquisitions by Covidien include superDimension, which develops minimally invasive interventional pulmonology devices for $300 million and ventilator maker Newport Medical Instruments for $108 million.

Going forward, we expect this M&A trend to continue. We also expect a significant pickup in in-licensing activities and collaborations for the development of pipeline candidates. Several MedTech majors, struggling with their core businesses, are looking to explore emerging therapies with potential.

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