In healthcare, as in most segments of the market, growth fixes or at
least papers over a lot of problems. Nobody really cares if the latest
hot tech company is producing lousy margins and has no clear path to
meaningful free cash flow - as long as the revenue growth is
eye-popping, that's good enough for a high multiple until the day of
reckoning comes into view.
For Baxter (NYSE:BAX), the split/spin-off of Baxalta (NYSE:BXLT)
leaves behind a company with solid market share in stable markets, but
management is going to have to roll up their sleeves and put in some
work to find growth opportunities and drive better margins. There is
certainly room for Baxter to do better in infusion pumps and renal care,
and biosurgery can be a decent business in the coming years, but the
market is already expecting a lot of improvements here in the years to
come.
Continue reading here:
Structurally Light On Growth, Baxter Has A Lot Of Work Ahead
Showing posts with label NxStage Medical. Show all posts
Showing posts with label NxStage Medical. Show all posts
Sunday, August 16, 2015
Tuesday, November 27, 2012
Investopedia: Will Baxter Go For Gambro?
When
real news fade, rumors seem to crop up a little more readily. In the
case of the rumor that Baxter
(NYSE:BAX)
is arranging a bid for Gambro,
however, there's a little more credibility than usual. Baxter has
long wanted Gambro, and the combination would make sense in a
med-tech market where growth is increasingly hard to come by.
For the full article please continue here:
http://www.investopedia.com/
Tuesday, March 13, 2012
Seeking Alpha: A Med-tech Shopping List For Japanese Companies
Outside of pharmaceuticals and "big iron" applications like imaging, Japanese companies haven't made much impression on the U.S. healthcare market. That may be changing, though. As Japan faces its own aging population and companies look to diversify from traditional industries, healthcare is becoming an increasingly popular sector in corporate Japan.
It's still too soon to call it a real trend, but Japanese companies have recently shown an inclination towards accelerating their diversification by buying established U.S. med-tech names. Asahi Kasei recently announced a $2 billion-plus deal for ZOLL Medical (ZOLL), while a few months earlier Fujifilm stepped up to buy SonoSite (SONO). Though not exactly comparable, Terumo (a Japanese healthcare and device company) acquired CaridianBCT for over $2 billion early in 2011 to strengthen its position in the global transfusion equipment market.
Please follow this link for more:
A Med-Tech Shopping List For Japanese Companies
It's still too soon to call it a real trend, but Japanese companies have recently shown an inclination towards accelerating their diversification by buying established U.S. med-tech names. Asahi Kasei recently announced a $2 billion-plus deal for ZOLL Medical (ZOLL), while a few months earlier Fujifilm stepped up to buy SonoSite (SONO). Though not exactly comparable, Terumo (a Japanese healthcare and device company) acquired CaridianBCT for over $2 billion early in 2011 to strengthen its position in the global transfusion equipment market.
Please follow this link for more:
A Med-Tech Shopping List For Japanese Companies
Wednesday, October 26, 2011
Investopedia: Bizarre Baxter
What exactly is Baxter International (NYSE:BAX) supposed to be? It has a huge business in biological therapies for conditions like hemophilia, but also a sizable business in medical devices and equipment. It's not priced as a value stock, it's dividend is too low for an income stock, but it doesn't really grow enough to be a med-tech growth story. All in all, Baxter is a consummate "neither fish nor fowl" company, but that does not mean that it is not worth a serious look from investors looking for a quality health-care name with growth potential.
A Challenging Third Quarter
Analysts seemed positive on Baxter's third quarter results, but it is not immediately clear as to why they should be. Organic revenue growth was just 4% - maybe not terrible in the context of a tough health-care market that has laid low even Johnson & Johnson (NYSE:JNJ) and Abbott Laboratories (NYSE:ABT), but not exactly torrid either.
Read the full piece here:
http://stocks.investopedia.
A Challenging Third Quarter
Analysts seemed positive on Baxter's third quarter results, but it is not immediately clear as to why they should be. Organic revenue growth was just 4% - maybe not terrible in the context of a tough health-care market that has laid low even Johnson & Johnson (NYSE:JNJ) and Abbott Laboratories (NYSE:ABT), but not exactly torrid either.
Read the full piece here:
http://stocks.investopedia.
Tuesday, December 28, 2010
Hottest Device Stocks Of 2010
2010 was a tough year for medical device stocks. Investors faced up to the reality that a popular myth - that people do not meaningfully change their health care consumption because of the economy - is just not true. Investors also had to digest the impact of a suddenly much more industry-unfriendly FDA, which is imposing new (and in many cases unspecified) standards regarding safety and the trade-off with efficacy.
All in all, the medical device industry lost about 5% in 2010, just barely missing the bottom 10 list of underperformers. In fact, in broad terms, banks (which includes many subcategories), biotechnology, solar and for-profit education were the only ones separating medical devices from the bottom.
That said, it was not all doom and gloom in the sector. In fact, many medical device companies not only outperformed the industry but did quite well in absolute terms. Here are some of the notable performers of the year. (For a quick refresher, check out A Checklist Of Successful Medical Technology Investment.)
Growth Is Growth
NxStage Medical (Nasdaq:NXTM) does not get all that much attention, but this company has brought to reality what many companies have tried (and failed) to develop for at least two decades - an at-home hemodialysis system that actually works in both a technical and practical sense. NxStage is not profitable yet, but the company is posting double-digit growth (annualizing over $100 million). On top of that, sell-side analyst interest is picking up, and institutional investors are becoming a bigger player in the stock. All of that has fueled a better than 200% jump in the stock over the last year.
Please follow the link:
http://stocks.investopedia.
All in all, the medical device industry lost about 5% in 2010, just barely missing the bottom 10 list of underperformers. In fact, in broad terms, banks (which includes many subcategories), biotechnology, solar and for-profit education were the only ones separating medical devices from the bottom.
That said, it was not all doom and gloom in the sector. In fact, many medical device companies not only outperformed the industry but did quite well in absolute terms. Here are some of the notable performers of the year. (For a quick refresher, check out A Checklist Of Successful Medical Technology Investment.)
Growth Is Growth
NxStage Medical (Nasdaq:NXTM) does not get all that much attention, but this company has brought to reality what many companies have tried (and failed) to develop for at least two decades - an at-home hemodialysis system that actually works in both a technical and practical sense. NxStage is not profitable yet, but the company is posting double-digit growth (annualizing over $100 million). On top of that, sell-side analyst interest is picking up, and institutional investors are becoming a bigger player in the stock. All of that has fueled a better than 200% jump in the stock over the last year.
Please follow the link:
http://stocks.investopedia.
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