Zacks Industry Outlook Highlights: Medtronic, Boston Scientific, St. Jude Medical, Haemonetics and Cyberonics

CHICAGO--(BUSINESS WIRE)--Today, Zacks Equity Research discusses the Medical Device industry, including Medtronic Inc. (NYSE: MDT), Boston Scientific Corporation (NYSE: BSX), St. Jude Medical Inc. (NYSE: STJ), Haemonetics Corporation (NYSE: HAE) and Cyberonics Inc. (Nasdaq: CYBX).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/39211/Medical+Devices+Industry+Outlook+-+August+2010

In our portfolio, we see growth potential in companies dealing with cardiovascular devices, Neuro and blood-related products. Names in this list include Medtronic Inc. (NYSE: MDT), Boston Scientific Corporation (NYSE: BSX), St. Jude Medical Inc. (NYSE: STJ), Haemonetics Corporation (NYSE: HAE) and Cyberonics Inc. (Nasdaq: CYBX). Although these companies have Neutral ratings, they remain well placed in the current environment. We will closely monitor their performances in the current quarter for possible upgrades.

Big-Three MedTechs Lead the Way

The above-listed companies are producers of life-sustaining products and are less affected by economic turbulence. As evident from the most recent quarter results, some of these companies have been successful in weathering the storm (pricing, currency and procedure growth headwinds) in the cardiovascular space in the wake of recovery.

These companies are all leading players in their respective fields and are potential winners in the long run. In particular, with a slew of new products, the big three players (MDT, BSX and STJ) in the implantable cardioverter defibrillator (ICD) market are well positioned to gain market share, despite the sluggish business environment.

Among these names, Medtronic has a diversified presence in Cardiovascular, Neuro, Spinal, Diabetes and ENT. Boston Scientific is the leader in the drug eluting stent (DES) market and is better placed with the recent resolution of all issues cited in its 2006 FDA corporate warning letter regarding serious regulatory problems and corrective actions at three of its facilities. The company’s return to the ICD market (after one month absence due to product recall) represents another boost. Moreover, Boston Scientic’s restructuring initiatives are expected to contribute to the bottom-line moving forward.

St. Jude is poised to grow its market share in the CRM segment (especially in ICDs) driven by its new Fortify and Unify lines of devices. Moreover, we are optimistic about the emerging opportunity in intravascular imaging market, enabled by the company’s LightLab acquisition in July 2010.

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