This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
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
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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
Please login to Zacks.com or register to post a comment.