iShares US Medical Devices

Stryker (SYK) registered strong 3Q16 earnings on October 27, 2016. The company’s reported earnings exceeded analysts’ estimates.

Year-to-date, ABT stock has risen 12.8%. Over the last month, the stock has returned ~4.0%.

Boston Scientific (BSX) was trading at $27.9 on June 29, 2017.

On July 27, 2017, Baxter International (BAX) completed the acquisition of Claris Injectables, which is expected to help expand and strengthen Baxter’s core capabilities.

Medtronic’s Restorative Therapies Group consists of Spine, Brain, Specialty and Pain therapies.

The repeal of the tax deduction for high medical expenses may reduce the number of taxpayers opting for costly medical technologies and services.

On September 7, 2017, BAX stock closed at $62.84 per share. It has a 50-day moving average of $61.15 and a 200-day moving average of $57.14.

Boston Scientific (BSX) currently has a global market opportunity of $40.0 billion, which is expected to grow to $50.0 billion by fiscal 2020.

Medtronic’s (MDT) Hospital Solutions segment registered double-digit growth in fiscal 1Q18.

Zimmer Biomet Holdings (ZBH) was trading at $118.40 on May 30, 2017. It has a 50-day moving average of $119.70 and a 200-day moving average of $114.20.

Danaher’s Diagnostics unit had operating margins of 15.4% in 2015 and 17.2% in 1H16.

Customers in the Danaher life sciences business generally look at how the technology offered by a company can fit into their workflows.

Danaher’s ROIC fell steadily from 15.5% in 2006 to 8.5% in 2015, indicating that it has probably had fewer high return reinvestment opportunities since then.

To better position itself amid the changing medical device environment, Becton Dickinson has come to focus on restructuring and business model evolution.

Thermo Fisher Scientific (TMO) has made a number of acquisitions over the years, resulting in the expansion of the company’s product portfolio with the inclusion of a number of premium brands.

Thermo Fisher Scientific (TMO) is one of the leading medical technology companies in the world, providing a broad portfolio of laboratory equipment and services.

Inorganic growth through acquisitions has led to the expansion of Abbott Laboratories across geographies and to the broadening of its product portfolio.

Abbott’s Established Pharmaceuticals segment is a consumer-oriented segment with a consumer mix of around 75% self-pay consumers and 25% third-party payers.

Becton, Dickinson and Company is one of the five biggest medical device companies in the United States.

Abbott Laboratories operates across more than 150 countries, employs over 73,000 people, and is the global leader in the nutrition subsector.

Becton, Dickinson and Company’s (BDX), or BD’s, growth strategy includes acquisitions and collaborations.

Becton, Dickinson and Company, or BD, headquartered in Franklin Lakes, New Jersey, is one of the leading medical technology companies in the United States.

Traditionally, the United States has been home to the most advanced technological inventions in the medical device industry.

Though the medical device sector displays significant resilience towards changes in the economic environment, economic factors do impact short-term demand substantially.

In most countries, the approval process varies across different categories of devices classified as per their risk profiles.

Medical device companies are driven by innovation and inventions that involve high research and development (or R&D) costs.

Coverage, coding, and payment are essential elements to obtaining adequate reimbursement for a new medical device.

The medical device industry in the US consists of a few big players and a large number of small and medium enterprises.

Medical devices are classified as per the level of control required by the Food, Drug, and Cosmetic Act (or FD&C Act).

The US medical device industry has rebounded sharply since its 2008 decline, and it is trading at a high PE of 21.9x.

Medical device manufacturers source various medical components and parts from suppliers in order to assemble or develop medical devices.

Venture capital is one of the major sources of capital for the US medical device industry.

As per the US Census, spending on medical devices in the US has been constant for over a decade between 2005 to 2015.

Headquartered in Minnesota, Medtronic is the world’s largest pure-play medical device company, with operations in 160 countries and over 85,000 employees.

The US Food and Drug Administration’s Center for Devices for Radiological Health (or USFDA/CDRH) regulates the medical device industry in the United States.

The US medical device industry has been working on traditional business models based on R&D and innovation where physicians have been the target audience.

The US medical devices industry can be categorized according to the field of medicine in which a device is used.

The US medical device market is projected to grow at a compound annual growth rate of 6.1% between 2014 and 2017.