NEW YORK, NY, Nov 02, 2010 (MARKETWIRE via COMTEX) -- 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 Instruments & Supplies Industry and provides research reports on Boston Scientific Corporation /quotes/comstock/13*!bsx/quotes/nls/bsx (BSX 6.39, +0.07, +1.11%) and Covidien plc /quotes/comstock/13*!cov/quotes/nls/cov (COV 39.90, +0.24, +0.61%) . Access to the full company reports can be found at: www.bedfordreport.com/2010-11-BSX
www.bedfordreport.com/2010-11-COV
Despite industry-wide regulatory concerns, Covidien believes that its Medical Devices segment will continue to be the company’s biggest growth driver. The company anticipates revenues from Medical Devices to surge 10% - 13% year-over-year in fiscal 2011.
Covidien continues to actively invest in R&D. Last month the company announced a partnered investment in medical technologies research projects with NUI Galway.
The Bedford Report releases regular market updates on the Medical Instruments & Supplies 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.
Last week Boston Scientific announced that it sold its neurovascular business to Stryker Corp. for $1.5 billion in cash. Boston Scientific’s Chief Executive Ray Elliott says that half proceeds from the sale will be used for acquisitions. Boston Scientific has been increasing its M&A activity as of late. In September BSX said it was buying Asthmatx, a company that makes an asthma treatment device, for $193.5 million in cash up front. The acquisition could cost Boston Scientific an additional $250 million if revenue milestones are met through 2019.
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