Medical Device Manufacturers Brace for New Normal

Medical Device Manufacturers Brace for New Normal

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Now that the vast majority of the Affordable Care Act has been upheld, the conversation will turn to how the law is implemented and whom it will effect.  One of the most controversial provisions in the act from the perspective of the business community is the 2.3% tax that will be applied to purchases of medical devices.  While the goal of this provision is seemingly to reduce the carefree application of costly medical tests, for companies in this industry a forceful lobbying campaign has begun to have this tax curtailed.

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The medical device manufacturing industry has reaped the benefits of rapidly rising healthcare costs of late.  That era could be coming to a close as doctors and hospitals might not be so quick to purchase these costly devices once this sales tax goes into place in 2014.  Listed below are nine large medical appliance manufacturers traded on the S&P 500 (SPX) who are sure to be affected by this legislation.

Use the Turbo Chart to Compare the Performance of the First Two Companies in the List to the S&P 500:

“1. Boston Scientific Corporation (BSX, Earnings, Analysts, Financials): Develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide. Market cap at $8.29B, most recent closing price at $5.80.

 

“2. Edwards Lifesciences Corp. (EW, Earnings, Analysts, Financials): Offers products and technologies designed to treat advanced cardiovascular disease worldwide. Market cap at $11.1B, most recent closing price at $96.88.

 

“3. Intuitive Surgical, Inc. (ISRG, Earnings, Analysts, Financials): Designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Market cap at $20.96B, most recent closing price at $527.98.

 

“4. Medtronic, Inc. (MDT, Earnings, Analysts, Financials): Manufactures and sells device-based medical therapies worldwide. Market cap at $38.88B, most recent closing price at $37.49.

 

 

“5. St. Jude Medical Inc. (STJ, Earnings, Analysts, Financials): Develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. Market cap at $11.17B, most recent closing price at $35.59.

 

“6. Stryker Corp. (SYK, Earnings, Analysts, Financials): Operates as a medical technology company worldwide. Market cap at $19.94B, most recent closing price at $52.34.

 

 

“7. Varian Medical Systems Inc. (VAR, Earnings, Analysts, Financials): Designs, manufactures, sells, and services equipment and software products for treating cancer; and x-ray products worldwide. Market cap at $6.62B, most recent closing price at $59.39.

 

“8. Waters Corp. (WAT, Earnings, Analysts, Financials): Designs, manufactures, sells, and services high performance liquid chromatography, ultra performance liquid chromatography, and mass spectrometry (MS) instrument systems and support products primarily in the United States, Europe, Japan, and Asia. Market cap at $7.14B, most recent closing price at $80.32.

 

“9. Zimmer Holdings, Inc. (ZMH, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and marketing of orthopaedic reconstructive implants, spinal and trauma devices, dental implants, and related surgical products. Market cap at $10.68B, most recent closing price at $60.63.

 

 

(Written by Dan Connelly)

 

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2 Responses to “Medical Device Manufacturers Brace for New Normal”

  1. urgent care says:

    In every medical center we have found the use of medical devices is rapidly increased just because to deliver quality and effective medical care service to the victims. Therefore in most of the regions we have noticed that medical device manufactures are used to apply several kinds of techniques and strategies to sharp the issues of medical service through medical device.

  2. patinson says:

    The manufacturers are indeed facing a tough situation there from the financial point of view. However, such problems occur in other industries as well, I am part of the geophysical instruments supply industry and here we too are having to deal with financial issues.

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