SOURCE: Wall Street Equity Research

Wall Street Equity Research

October 18, 2010 08:38 ET

Analyst Study on Zimmer Holdings Inc. and Medtronic Inc. -- Med Equipment Makers Concerned Over Regulatory Changes

JOHANNESBURG, SOUTH AFRICA--(Marketwire - October 18, 2010) - brings investors market knowledge on the aspects moving the medical appliances & equipment stocks, and offers complete analytical research on companies like Zimmer Holdings Inc. (NYSE: ZMH) and Medtronic Inc. (NYSE: MDT). Register with today to gain full access to our complimentary research on these medical appliances & equipment stocks.

Medical equipment makers are anxious to see how regulatory standards will be updated in the coming weeks. A series of medical equipment recalls this year has prompted the Food and Drug Administration to look closer at how products are approved for use. is a specialized website where investors can have specific access to complimentary reports on medical appliances & equipment industry; traders looking for analysis on Zimmer Holdings Inc., Medtronic Inc. and other players in the industry are welcomed to sign up for free at

At the moment, there are basically two ways in which a new piece of equipment can reach the market. The slower (and cheaper) of the two avenues is an exhaustive pre-market testing system. The faster (and more expensive) path is the 510(k) process. About 85% of equipment that reaches market does via the 510(k) method. It is the latter of the two processes that has gained attention recently and the one most subject to alteration. Visit us at to understand the catalysts and forces driving or affecting companies in the medical appliances & equipment industry.

A new proposed testing system tentatively titled Class IIb is gaining steam and could be passed before 2011. The biggest difference with a Class IIb designation is the addition of clinical trials to laboratory trials. The addition of clinical trials would slow a product's arrival to market and increase the costs of getting it there.

It is not yet known when and if the regulatory changes will be made but the uncertainty of it has been sufficient to alter how equipment makers designate capital for spending. Companies are shifting more money to research and development as well as production in anticipation of the changes. Whether or not the additional costs will be passed along to the consumer is yet to be determined.

Elsewhere in the industry, earnings releases are about to come to light with Zimmer Holdings Inc. posting theirs on October 28th. Investors can register today at to download the full report on Zimmer Holdings Inc.

The world's largest medical device producer is set to post its earnings on November 22nd. Investors can access free research on Medtronic Inc. now by signing up at

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