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TWST: Please give us an idea of what your coverage looks like in this
whole medical device space.
Mr. Goldman: It's a broad range of companies in terms of size, product
focus and type of investment. Our medical device group includes names
such as American Medical Systems (AMMD), AngioDynamics (ANGO), C.R. Bard
(BCR), Boston Scientific (BSX), IDEXX Laboratories (IDXX), Integra
LifeSciences (IART), Kensey Nash (KNSY) and Medtronic (MDT). We also
have a medical supplies group, which includes names such as Baxter
(BAX), Becton, Dickinson (BDX), CONMED (CNMD), Hospira (HSP), Invacare
(IVC), Johnson & Johnson (JNJ) and STERIS (STE). TWST: It has certainly been a space that has gotten some publicity
recently, most of it bad. What's your general take on what has gone on
so far this year?
Mr. Goldman: I think, as has always been the case for stocks within the
sector, it lends itself to bottom-up analysis, company by company. The
overall macro trends just don't seem to drive these stocks in any kind
of homogenous way. The negative press that used to exist most likely
relates to some reimbursement issues. But the reimbursement actually is
a mixed bag in and of itself. The amount of reimbursement suggested to
hospitals by CMS's proposal a couple of weeks ago is actually quite good
in the aggregate; however, certain sectors of the healthcare system
would stand to lose ' probably the fibrillator suppliers and stent
manufacturers. But in the aggregate, the reimbursement is quite good. So
there are some losers within the medical device sector, and it does lend
itself to bottom-up analysis.
Tickers included in this excerpt: ABT, AMGN, AMMD, ANGO, BAX, BCR, BDX, BSX, CNMD, DNA, HSP, IART, IDXX, IVC, Iš, JNJ, KNSY, MDT, MRK, NVS, STE, TEVA, US
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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