Wall Street Transcript Interview with Matt Miksic, Managing Director and Senior Research Analyst at Piper Jaffray & Co.: Opportunities in Advanced Surgical Technology for Medical Device Companies

Wall Street Transcript

67 WALL STREET, New York - March 19, 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. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. 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 - Cardiac - Health Care - Affordable Care Act

Companies include: Intuitive Surgical, Inc. (ISRG), MAKO Surgical Corp. (MAKO), Baxter International Inc. (BAX), Wright Medical Group Inc. (WMGI), Johnson & Johnson (JNJ), Medtronic, Inc. (MDT), Zimmer Holdings Inc. (ZMH), Smith & Nephew plc (SNN), Stryker Corp. (SYK) and many more.

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

TWST: Where are you focusing your attention in the medical device space these days?

Mr. Miksic: There are a few themes that I would highlight, and most of the stocks we like grow out of these themes. One is pretty straightforward: Given the last two or three years of sluggish performance in med devices and improving growth in end markets, we began to beat the drum on a little bit more loudly last year on the opportunities for leverage and cash flows that come from an industry sector that has manufacturing assets to support a much larger market and is now starting to see improving end volumes. Some of the names we like fall into that group.

Another theme is advanced surgical technology, a general category where we place robotics and other high-tech equipment that goes into many different ORs and cover many different procedures. That's an area where we think there continues to be lots of opportunities to move surgeons into newer instruments and tools that help them operate more accurately, more consistently and safely without necessarily having to introduce, say, a high-tech implant that would drive up per-case cost or their clinical development cost. It's a little bit of a capital equipment razor-razorblade model, but names such as Intuitive (ISRG), MAKO (MAKO) and Novadaq Technologies (NVDQ) fall into that space.

Beyond that, there are a fair number of ideas that we think are important. Obviously, you see a lot press around aligning therapies, devices and technologies with where health care is going, though it's not exactly that easy to see where health care is going. There are a lot of ideas on the board and frameworks and guidelines and pilot programs that have begun around the Affordable Care Act and the Accountable Care Act.

Those are all interesting and potentially impactful, but I think within that arena, there are a number of companies...

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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