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.
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A Med-Tech Shopping List For Japanese Companies
Showing posts with label SonoSite. Show all posts
Showing posts with label SonoSite. Show all posts
Tuesday, March 13, 2012
Monday, December 19, 2011
Investopedia: SonoSite Finds Its Deal
There was little mystery in seeing SonoSite (Nasdaq:SONO) get an acquisition bid. Not only has this relatively small manufacturer of portable ultrasound systems been a logical target for years, but the company began to actively and explicitly sell itself starting back in November. In a week that has seen another logical target (Synovis (Nasdaq:SYNO) get a bid from a not-so-likely buyer (Baxter (NYSE:BAX), the fact that it was Japan's Fujifilm that stepped up to buy the company makes this an a somewhat unusual story.
The Deal
Fujifilm will be acquiring SonoSite for $995 million in cash, or about $54 per share. That's a 28% premium to Wednesday night's close and a 75% premium to the price of SonoSite's stock before it was widely known that the company was looking to sell. SonoSite is going out at a little more than three times trailing revenue, a multiple curiously similar to that of Synovis and one that is not all that robust by historical small-cap med-tech standards, but isn't so unreasonable given the performance of the company. (For related reading, see An Introduction To Small Cap Stocks.)
Please read more here:
http://stocks.investopedia.
The Deal
Fujifilm will be acquiring SonoSite for $995 million in cash, or about $54 per share. That's a 28% premium to Wednesday night's close and a 75% premium to the price of SonoSite's stock before it was widely known that the company was looking to sell. SonoSite is going out at a little more than three times trailing revenue, a multiple curiously similar to that of Synovis and one that is not all that robust by historical small-cap med-tech standards, but isn't so unreasonable given the performance of the company. (For related reading, see An Introduction To Small Cap Stocks.)
Please read more 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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