International Markets Driving Medical Device Company Growth: Interview with Sector Expert Raj Denhoy of Jefferies & Company

Wall Street Transcript

67 WALL STREET, New York - August 24, 2013 - The Wall Street Transcript has just published its Medical Devices Report offering a timely review of the sector to serious investors and industry executives. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Orthopedics and Cardiovascular Medical Devices - Medical Device Innovation and Consolidation Trends

Companies include: Medtronic, Inc. (MDT), Boston Scientific Corporation (BSX), St. Jude Medical Inc. (STJ), Zimmer Holdings Inc. (ZMH), Stryker Corp. (SYK), Covidien, Ltd. (COV), Edwards Lifesciences Corp. (EW), Insulet Corporation (PODD), ResMed Inc. (RMD) and many others.

In the following excerpt from the Medical Devices Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Medical devices is a broad space. Where is your focus?

Mr. Denhoy: Our coverage is in a number of areas, everything from the cardiovascular space to the orthopedic space, to some smaller companies in diabetes and radiation oncology, ophthalmology, some of the more hospital-based product companies. I like to describe it as kind of the waterfront of medical devices.

TWST: What's driving the space at this point, is it ObamaCare or Medicare?

Mr. Denhoy: I think there are several major themes that have been playing out for the last couple of years in medical devices. To really have an understanding of where we are today in this industry, you have to take a historic perspective of where's it's been for the last 25 or 30 years.

Devices have historically been a really high growth area of health care. For a lot of years there was a tremendous amount of innovation happening, a lot of new markets being opened, a lot of new device categories being created, which spurred a lot growth for the companies in this space. But there were also unique aspects of this sector that helped drive growth, and one important one was that the selector, or the person who decided what type of technology was going to be used, was typically a clinician - a surgeon for the most part - and that person selected the products they used for a lot of reasons that for the most part weren't related to price of the device. There was very little connection between the selector of the technology and who was paying for it, and that has changed really dramatically in the last couple of years as the incentives have begun to realign...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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