Zacks Industry Outlook Highlights: Johnson & Johnson, Hologic, Abbott
Laboratories, AbbVie and Quest Diagnostics
CHICAGO, Jan. 30, 2013
CHICAGO, Jan. 30, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Medical Technology, including Johnson & Johnson (NYSE:JNJ), Hologic
(Nasdaq:HOLX), Abbott Laboratories (NYSE:ABT), AbbVie (NYSE:ABBV) and Quest
A synopsis of today's Industry Outlook is presented below. The full article
can be read at
We are in the midst of the fourth quarter earnings season and it is once again
time to review the players in the worldwide medical devices market. The US
still holds the leading position with almost one-third of the market share.
However, emerging economies like Brazil, Russia, India and China –
collectively known as the BRICs – are fast coming up in the medical devices
space and are attracting a lot of attention.
These emerging economies are seeing an increasing uptake of medical devices
due largely to growing medical awareness and economic prosperity. Expansion
in emerging markets, especially those with double-digit annual growth rates,
represents one of the best potential avenues for growth in 2013 and beyond.
On the flip side, the MedTech industry is currently plagued by several issues
including the 2.3% medical device excise tax, pricing concerns, hospital
admission and procedural volume pressures, Medicare reimbursement issues and
regulatory overhang. Percutaneous intervention (angioplasty) volumes continue
to be relatively flat in the US, Japan and Europe, with improvement not
expected anytime soon.
In spite of several uncertainties resulting in constrained capital spending,
the past year also witnessed significant M&A deals including acquisitions of
Switzerland-based Synthes Inc. by Johnson & Johnson (NYSE:JNJ) for a whopping
$19.7 billion, Gen-Probe Inc. by Hologic (Nasdaq:HOLX) for $3.8 billion
Another trend that we have been observing of late is the divestment of
non-core business segments. For example, in early January, Abbott Laboratories
(NYSE:ABT) separated its research-based pharmaceuticals business by creating a
new company, AbbVie (NYSE:ABBV), to allow the two separate entities to perform
in a more focused manner.
In January, diagnostic testing company Quest Diagnostics (NYSE:DGX) divested
its OralDNA Labs salivary-diagnostics business to Access Genetics. The sale of
the company's HemoCue diagnostic products business is also in the works. This
would enable the company to refocus its attention on its core diagnostic
information services. Moreover, Johnson & Johnson is currently looking for
opportunities to sell or spin off its Ortho Clinical Diagnostics business.
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